Has anyone come across this? After I spend time measuring and talking with a property manager, she tells me her budget is per month and that they may have to pay me a little each month. Insert first red flag here. I’m thinking…OK save up until you have enough for someone to do the work. The place hasn’t been washed in about 5 years and she was hoping her maintenance guy could do it. Fast forward to the end and then she lays on me that I would be asked to sign a Lien Waiver Agreement. I basically said to her " You mean so if your company doesn’t pay me, I can’t put a lien on the property". She smiles and says “yes”. I asked her why would I or anyone would want to do that? Has anybody here been asked do sign one of these? Is this typical with commercial properties? I do understand that one would be signed after payment but before hand?
I would leave that property and never look back.
I signed them on a regular basis it only goes into effect after you have been paid in full they only go into effect after you have been paid and prevent you from putting a lien after the fact
How can you place a lien on their property when they can prove that you have been paid?
Tell her I can do x SQ feet for your monthly budget? The only way I would do it the way she suggested is with a signed contract and I would make sure the person signing was authorized to do so. I also would be charging a higher rate than normal.
If you had an employee or sub that you didn’t pay they could go after the property. Lien waiver protects the property. I have to do it on every property that has an invoice over $5k. Literally 40 or more a year. It’s not going to prevent you, the contractor from putting a waiver on them if you aren’t paid
In the mechanics lien process, a lien waiver is a document from a contractor, subcontractor, materials supplier, equipment lessor or other party to the construction project (the claimant) stating they have received payment and waive any future lien rights to the property (of the owner) for the amount paid.
Just don’t sign it before you are paid unless it has writing that states it goes into effect after full payment had been made. We typically send them one when we receive the check
That was my understanding of a mechanics lien. It just seemed odd that she wanted it signed in advance. I told her I would look at the lien waver agreement to make sure. Thanks!
