What is a lien waiver?

A lien waiver is a document executed by a contractor, subcontractor, or supplier, which confirms that they have received payment for services rendered or materials supplied and, in return, relinquish their right to file a lien against the property for that payment. This process is often used in construction projects to assure property owners and financers that any outstanding claims for unpaid work or materials have been resolved. By obtaining a lien waiver, the property owner can be assured that they will not face legal claims associated with that specific work or material, thus providing a clear path to project completion without encumbrances related to unpaid dues.

The other choices do not accurately define what a lien waiver encompasses. A declaration of ownership being clear refers more to title and ownership concerns rather than claims for payment. A temporary suspension implies that the lien is put on hold rather than relinquished. A formal request to release a lienholder indicates an action typically taken post-filing a lien, rather than the waiver of the right to file one before it happens.