A Conditional Final Lien Waiver is utilized at the completion of a construction project or phase when final payment is pending. This document is crucial in U.S. construction law as it balances the interests of property owners and contractors by ensuring that contractors maintain their lien rights until payment is received. The conditional nature of the waiver provides protection for contractors while giving property owners assurance that lien rights will be waived upon payment. The document typically includes project details, payment amount, and specific conditions that must be met for the waiver to become effective. Requirements vary by state, with some jurisdictions mandating specific statutory forms.
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1. Project Information: Details of the construction project, including address and property description
2. Parties: Identification of the waiving party (contractor/subcontractor) and the property owner/contractor receiving the waiver
3. Payment Amount: Specific amount being paid in exchange for the waiver, including details of the work performed
4. Waiver Statement: Explicit conditional waiver language stating that the waiver becomes effective only upon receipt of payment
5. Payment Condition: Clear statement of the condition precedent (usually payment clearance) that must be met for the waiver to take effect
6. Execution: Signature blocks for all required parties with dates
1. Notarization Block: Section for notary acknowledgment when required by state law or requested by parties
2. Reserved Rights: Statement specifying any rights or claims that are not being waived under this document
3. Prior Rights Preservation: Section preserving rights from previous work periods or unrelated claims
1. Schedule A - Project Details: Detailed description of the project scope, property legal description, and relevant permits
2. Schedule B - Payment Details: Itemized breakdown of payment amounts, work performed, and dates covered by the waiver
3. Schedule C - Outstanding Claims: List of any preserved claims, disputed amounts, or retained rights not covered by the waiver
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