Difference Between Lien Releases and Lien Waivers

Business Timi Jul 08 2019

Difference Between Lien Releases and Lien Waivers

Both Lien Releases and Lien Waivers used synonymously, but both are incredibly different. It is essential to understand to differentiate between them. There should be no confusion in understanding them.

Lien waiver document is very different from the text of Releases of Lien.

In this article, we explained Lien Releases vs Lien Waivers in detail.

Lien Waiver

  • It is a document used for the waiver of lien rights. A waiver of lien happens before actually filling a lien.
  • You have the right to file a lien waiver asking them to waive your lien against your property.
  • Usually, the party making payment will request the supplier, subcontractor or another party sign a lien of waiver for an exchange for cash.
  • Lien waivers work similarly to receipts. For the amount outlined in the waiver document, the lien rights waived.
  • For Example, if you pay $1,000 as lien rights payment, then $1,000 of lien rights are waived.

Lien Release

  • A lien release is a document used to cancel the lien rights that already filed.
  • After receiving payment by the claimant, it is used to release a lien claim most often.
  • This process releases the property in question from the claim of the lien.
  • A release of lien is also known as lien cancellation or cancellation of the claim.

When Do You File a Lien of Release?

  • After receiving the payment formally by the claimant, most states strictly require the claimant to release the lien.
  • As soon as you receive payment, it is better for you to release the lien if you don’t intend to enforce your claim.
  • The deadlines for releasing a lien vary state by state.
  • In the USA, many of the states release liens within 10-30 days of satisfaction or the previous date requested in the letter.
  • However, There are a few exceptions to this.
  • Some states need 60 days of satisfaction for release of lien. While some states tell that a release of lien is due immediately upon satisfaction or written request.


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