Swipe & Deploy: The Contractor Lien Wavier You Never Knew You Needed
Alright, awesome investors… it’s time for you to grab another free goodie to swipe and deploy in your own real estate investing business right from our arsenal of tools.
But before that…
In case you don’t know already, there’s an entire “Swipe & Deploy” goodies category over here—which we’re always adding to, and currently gives you everything from an affidavit of equitable interest to a transfer property letter… and from a simple real estate contract to option agreements.
Plus, a tasty letter of intent template, MLS keywords, a seller phone script & voicemail script— even some marketing goodies like one of our favorite motivated seller letters and seller postcards too.
This time, we’re giving you a Contractor Lien Waiver.
Do I really need a contractor lien waiver?
The short answer is heck yes.
So, lemme tell you a little story…
Over a decade ago, my investor buddy Brian, who does deals up north, shared this insight with me.
See, I had never used a contractor lien waiver for any of my deals when I was working with contractors.
But Brian reminded me that — in the same way someone doesn’t necessarily need a viable case to bring all hell upon you with a frivolous lawsuit — an unscrupulous contractor could easily bring you a world of hurt with an unwarranted mechanics lien.
So, it’s not often the case, but sometimes if a business relationship with a contractor goes sideways, he/she can place a frivolous lien on your property — it’ll cost lots of money and a lot of wasted time.
But! You can avoid it if you have a lien waiver on file.
So here’s what Brian does: When the work is done, before he hands over the payment to the contractor, he gets a signed contractor lien waiver from them, which protects him from an unwarranted lien.
As you’ll learn from this valuable info, a contractor lien waiver is unassuming… underrated… and undeniably essential.
The contractor lien waiver…
So, it's a very simple form. But if you don't use it, it can haunt you down the road.
You need to get in this habit: Every time you're cutting a check to one of your contractors, make sure you get a signed lien waiver. They go hand in hand.
And depending on your state’s laws, some title companies want copies of all of your lien waivers from all of your contractors at closing.
Here’s how it protects you…
Let’s say you had a cement guy pour a new sidewalk, you paid him, but there was no signed lien waiver.
Well, he can do 2 things:
- Claim you never paid him or…
- Put a lien on the house, claiming no payment, which means you can’t get clear title.
So, the signed lien waiver is your proof.
Plus, it protects the contractor from not getting paid for work he/she does on a property.
Again, the best practice is not to give contractors their last check for the remainder of the work they've done until they, in return, give you a release of lien with a contractor lien waiver.
And, for example, if you have a general contractor set up on a draw schedule, have them sign partial lien releases along the way.
So, if it's a $50,000 rehab and the first draw is $20,000 to that contractor — when they take that $20,000, make sure they also sign a partial lien release for that $20,000.
And in a situation like that, I not only have them sign off on the partial withdrawals along the way, but I still also have them sign off on the job’s completion.
Important Note: Cover your butt and get ALL subcontractors to sign a lien waiver too. You could even go so far as to change the generic “contractor” term on the actual document to something specific, like a plumber or electrician. Even though subs are technically covered as employees of the general contractor, might as well CYA with a small extra step of additional signed forms — you don’t want an independent contractor potentially holding you hostage with a lien.
Contractor Lien Waiver: Get Mine Now 🙂
Ready to just grab mine for your own Awesome bag of tricks?
Awesome, just remember: You might want to have your local attorney and/or real estate pro—someone who knows the specific legal stuff for your state—review it before you go start using it…
Here's how…
Step 1 ⤸
“Like” our Facebook page please?
Step 2 ⤸
Just leave a comment below sharing your honest feedback on the contractor lien waiver I'm freely sharing with you. Whatever you think after hearing my thoughts behind it. Good, bad, and anywhere in between. Seriously.
Alternately, I’m also interested in hearing anything else (another resource or tool) that you’d like us to share in a future “Swipe & Deploy” like this. Do tell.
Step 3 ⤸
Then Chuck Norris will hand you over my template.
Totally serious. Just try it. 😀
Thanks for the document and for sharing your knowledge
Hadn’t crossed my mind, but it makes sense. Thanks for sharing your experience and the doc!
I closed on a rehab and my contractor had a lien on me when she actually overcharged me. This is much needed.
Thank you for protecting me from a world of grief!
This is great. Thank you
Love it – you don’t know what you don’t know – thanks for the heads up, great information!
Great advice and no truer statement!
Wish I had this 6 months ago. You can get screwed if unaware
Jp Excellent information ~ Awesome…again.
Awesome !
This is incredibly helpful. I just read Rich Dad Poor Dad and Robert K. encouraged me to gain knowledge. I am just starting out, gathering information. This is valuable information for me. Thank you for caring enough to share this!!
Wish I had this 6 months ago. You can get screwed if unaware
You know we can’t make everyone happy can we?
Thank you, much appreciated and needed.
havent started yet but thanks for sharing
Good thinking I never thought of this, got to cover your butt…
Thank you for another piece of Awesome!
I would feel much better using this form. Love it
Thanks for sharing
Thanks for being thorough but simple.
Makes sense
Great information I love the way you all Make it so simple to understand why an how it works thanks!
Didn’t know about a lien waiver until now but makes total sense to have one in place. Thanks for sharing!
Very informative. I never knew about this document.
Very useful.
im gonna take these jewels your giving me to the next level thx guys
Thank you, very much appreciated
I am so glad I have this to protect our company. Thank you!
Didn’t know about this agreement until now could have used one in my past,but got it now, thanks.
Thanks for sharing. Great stuff!
Thanks for all you do! Great tool
This is amazing!!
wow I loved this information since we are about to build our first house
Contractors should sign lien waivers!
Nice protection plan that must always be in place for a Awesome win win
Great protection during phases of work performed. This will replace my existing Contractor Lien release form
Great contract to have on hand, informative break down of contract. Awesome job!
Thanks I really appreciate it !!
A great contract for investors to have. Thanks!
Seem like a good idea for anyone having work done.
Definitely Needed Valuable Info! I love increasing my knowledge and protecting my VALUE and WORTH!
You guys rock! Great stuff
Awesome resources please don’t stop sharing these golden nuggets these are the little things that make all the difference.
Wow hope I never need to employ the use of this one in court but I will be glad to add it to the stack of agreements my contracts will now include
it was awesome there was some great information in the video good to know info about contractors
Great resource! I never thought about this nor heard of it in any other training. Glad you shared it!
Great contract to have on hand, informative break down of contract. Awesome job!
Looking for the contractor lien waiver. I would like to cover my backside.
Awesome
Stop the smart problem starters from holding you hostage.
This is an insurance certificate on a Fix & Flip!
Thanks JP for all these great tools and helpful information because I had no idea that a contractor could do something like that.
It’s very entrusting about the Contractors Lien Waivers, I never known about that! My parents have to paid some unheard of no payment on a contractor work which was already paid. Buy not having a lien waiver. This is something new to me.
This is such a great idea. I recently had a dispute with a contractor and could of use this tool.
SMART, thats one thing I did not think of! Thats why articles like this one are so helpful and why its smart to continually research ways to do it better! Thank you for your valuable insight
Thank You.
I feel good that you are given me the necessary tools.
As a real estate investor, i never thought to even consider using this. But I will from here on out.
Great information. Like the way to keep us informed.
Thanks for the ‘AWESOME’ info
Tremendous share! We are about to acquire a property which will need extensive rehab. Your post is timely. Thank you!
These are a must to make sure trades people / suppliers don’t hold up your project due to filing an invalid lien
Many thanks for the form. It will be very helpful as I am currently getting quotes for landscaping.
You are awesome, really. You think OUT of the box like nobody I’ve ever seen AND you’re willing to share!
Thank you
awesome awesome awesome very good information continue to us level up our business
Thanks for the document and for sharing your knowledge
Haven’t had a chance to use this waiver yet, but I believe it’s going to be a great resource for the future.
This is a cool tool to have.
This looks like a very useful piece of information when it is needed!!!
Thanks for the insight! Very helpful.
Awesome REI is always so helpful and honest. We all need a good way to deal with contractors. They, too, can be awesome – but also be the opposite!
Thanks for sharing the Contractor Lien Waiver!
Greatly appreciated! You guys just keep delivering!
Absolutely amazing information, that is much needed in this industry. Thank you!
I work for a mortgage company in renovation lending and a contractor has at least 120 days (depending on where you live) after a renovation is complete to place a lien on your home. Get this and get it signed!
Thanks for this great tool. It’s better to be safe than sorry when dealing with contractors. Actually, all parties involved win when you take this extra precaution.
I have been in RE games since 1985 I have never known anyone that has this Letter Before Thank you for Sharing Patrick
Wow!!! Great information. Thank you!
I have heard of this practice before; but, I have never actually seen a contractor’s lien waiver offered before. Thank you for that.
Really a great item to have in my tool kit.
Getting the Lien Waiver to me is like reading a contract before you sign it. If you don’t get the waiver or read (not skim) the contract, then you leave yourself open for all kinds of trouble in the future. Thanks for the download
Since I am still fairly new to the business,
Thanks for sharing this with us, help to keep a contractor in check : )
Great info… I’ll use this
Thanks for the lien waiver!
Great info, very informative
Sounds like one of those things that you would have wished you did after the fact. Definitely looks like a life saver.
Great Idea! Contractors are certainly guilty until they prove their innocent. This will help to keep them in line.
Good stuff
Great info Jp
As tools go, this is one of the most important documents to have when you have to hire a contractor for any type of work. It will hold up in court.
Very informative
Thanks for sharing the Contractor Lien Waiver!
You’re right! I haven’t needed it yet but I know I will in the future. This sounds great. Thanks!
Seem like a good idea for anyone having work done.
Always great info. Thanks a bunch.
It is sad this is needed but they are out there plotting daily. Do your homework and “CYA”.
Definitely needed in today’s market where labor shortages are prevalent and fraud is on the rise among unlicensed, non-skilled contractors.
Be sure to also obtain a Lien Waiver from any subcontractors who work on your real estate. If a contractor hires a sub, that sub can also file a lien. Anyone who works on your property can file a lien, so you need to have releases from everyone down the chain when making a payment.
Much needed!
hopefully I’ll never need this, but just in case, you’re right, it’s good to have!
Interesting, is all that I can say.
This is a great opportunity I look forward to this and thank you
Wow, great contract awesome way to protect yourself.
Very informative
its a good thing
Thanks so much for your generosity!
Awesome great info.
This is something I will definitely use if I do any fix and flips or even any prehabbing. Thanks for providing this to us.
This lien waiver is just DANDY!
I think that it’s brilliant. Thank you for sharing and I look forward to receiving it.
Awesome REI always shares helpful information.
Great, practical addition to my toolbox! Thanks!!
Never knew I needed it. Thanks.
Interesting to know.
It’s kinda scary that I’ve been operating all of these years without a Contractor’s Lien Release”. Definitely will use it going forward.
I love this ideal talk about cya!
I love this…
Hey. Get this. It will save you lots of grief. I am very glad I got one for my business.
Eye opening and revealing. Thank you for sharing this knowledge, which is key, so we will not get duped by unscrupulous “licensed” contractors, with this level of protection availed to us.
The waiver will be legal and binding and will protect you from future events that you may not be able to prevent
It’s a great way of preventing the contractors from turning the tables on you. It is protection for yourself.
I agree with all of the above. Nice to learn good ways to CYA
I appreciate this available information—first time hearing.
Awesome!!
I believe the contractor lien waiver will save you a ton of heartache.
Smart! Always CYA.
I think you are a very wise man in using this covers you from what could possibly happen Thank you
I really like all the cyob forms. I have a tendency to be too trusting and gullible. I believe they are telling me the truth when in fact they are blatantly scamming me. Have fallen for 1 too many scams.
Very in depth and easy to understand
I’m super stoked to get started! Reading all of this has me excited to begin a new chapter in my life, and what better way than to help others!
With this, I feel like I’m in good hands.