CruxNex Sign™ · Guide
How lien waivers work
A lien waiver is a receipt with teeth: in exchange for a payment, the person being paid gives up the right to file a lien on the property for that amount.
Who signs, who collects
- The party being paid signs the waiver.
- The party paying collects it before (or as) the money goes out.
- The property owner never signs a lien waiver. The owner is always the one collecting.
The payment chain
Money flows down the chain, and waivers flow back up it. At each payment:
| Payment | Who signs | Who collects |
|---|---|---|
| Owner pays the general contractor | General contractor | Owner (and the owner's lender or title company) |
| General contractor pays a subcontractor | Subcontractor | General contractor, who passes it up with the next pay application |
| General contractor pays a supplier | Supplier | General contractor, who passes it up with the next pay application |
| Subcontractor pays a sub-subcontractor or supplier | Sub-subcontractor or supplier | Subcontractor, who passes it up to the general contractor |
Why every tier matters
In most states, a subcontractor or supplier who goes unpaid can lien the owner's property even if the owner already paid the general contractor. That is why:
- Owners, lenders and title companies collect waivers from every tier for each draw, not just from the general contractor.
- General contractors collect waivers from their subcontractors and suppliers and attach them to their pay applications.
- Subcontractors collect waivers from their own sub-subcontractors and suppliers.
Conditional vs. unconditional
Conditional waivers are sent with the payment request. They only take effect once the payment actually clears, so they are safe to sign before you are paid.
Unconditional waivers are signed after the funds have cleared. They take effect the moment they are signed, whether or not you were actually paid. Never sign an unconditional waiver before the money is in your account.
A common rhythm: send a conditional waiver with this month's request, and an unconditional waiver for last month's payment once it has cleared.
Progress vs. final
Progress waivers cover one payment during the job, for work through a stated date. Retainage and later work are not released.
Final waivers cover the last payment, usually including retainage, and release all remaining lien rights for the job. Sign one only when you are truly done billing.
The Conditional and Unconditional Lien Waivers in this library are progress-payment waivers.
States vary
Some states require their own exact statutory waiver forms, including California, Texas, Arizona, Georgia, Florida, Michigan, Nevada and Utah, and a waiver that does not match the statute may not be valid there. States also differ on which tiers have lien rights at all; for example, suppliers to suppliers usually have none. Always check the rules for the state where the project is located.
General information, not legal advice.