Waiver of Lien?
We're having a screen room put on the back of our house. Our in-laws suggested getting a "Waiver of Lien" form from our contractor. Anyone hear of this before? Sounds familiar, but.... Is a "Waiver of Lien" form common now-a-days or is this "old school"? Outside of asking for a copy of the insurance, what else should we ask for in order to protect ourselves? Thanks!
Anybody who works on your property and feels like they were cheated or slighted can file a lien against that property for the amount of the dispute. In Iowa they have 90 days to do so. If they sign a lien waiver they are essentially waiving the right to file a lien. You can not transfer or sell the property until that lien is settled.
Otherwise the banks would make you wait the 90 days before giving you a mortgage on a newly constructed house. They don't want any liens on it.
Removing liens is a hassle but it is done frequently after the misunderstanding with the contractor is settled.
Call your mortgage banker or lawyer for a copy of a lien waiver and use them.