Hello biz.
Can someone tell me as if I were a retarded child(i might be) how liens work and whats a lien waiver?
So once I begin work the claimant/owner basically gets a lien right for contracted amount? Or I guess they could be liened if something goes wrong?
And when we finish all work and they submit final payment I give them a lien waiver, kind of like a receipt?
Is that how it works?
>>1461561
Most broadly, broadly speaking, yes.
A lien gives them a partial/full right in property for the amount you owe them to ensure they get something if you don't pay. If you don't pay, they generally have the right to the property.
When you pay, they give you a lien waiver and extinguish their right to the property.
There's a lot of nuance/contracting, though, so read what you're signing.
>>1461637
Thanks for the response.
I am a baby business and my client actually asked for a lien waiver after he paid the final invoice which never happened to me before.
This guy was a pleasure to work with and paid on time so I guess it's kind of a super safe receipt only?
>>1461653
Yep! He's probably doing that just to keep his paperwork current and have documentation (for taxes, his bank, etc.) in the future. If he paid you in full and he gave you a lien beforehand, I see no reason not to give him a waiver and call it a day.