New Mexico Conditional Waiver and Release of Lien Upon Final Payment
What is this form?
The Conditional Waiver and Release of Lien Upon Final Payment form is a legal document used by a lienor to waive their right to claim a lien for services rendered when they receive final payment. This form ensures that, upon receipt of the agreed payment, the lienor relinquishes any future claims related to the work completed on a property, differentiating it from other lien waivers that may not be contingent on payment.
Form components explained
- Identification of the lienor and the property.
- Details of the final payment amount.
- Statement regarding the waiver of the lien upon receipt of payment.
- Specific date of work completed up to which the lien is waived.
- Conditions under which the waiver is considered void if payment is not received.
- Signature requirement for the lien holder and acknowledgment section for notarization.
When to use this document
This form is used when a contractor, subcontractor, or supplier has provided labor or materials for a construction project and is due to receive final payment. It should be completed when the parties are ready to finalize payment, ensuring that the lienor relinquishes any future claims on the property for the work done specified in the form.
Who this form is for
- Contractors and subcontractors providing services for a construction project.
- Suppliers of materials or equipment used in the project.
- Property owners seeking to obtain a clear title upon payment completion.
- Anyone involved in a project where a lien is claimed for unpaid services or materials.
Instructions for completing this form
- Identify and enter the name and contact details of the lienor.
- Clearly state the amount of final payment being received.
- Document the date when the services were provided.
- Specify the work done and the property involved in the lien.
- Include the condition regarding receipt of payment and potential invalidation of the waiver.
- Sign the document and have it notarized if necessary.
Does this form need to be notarized?
Notarization is required for this form to take effect. Our online notarization service, powered by Notarize, lets you verify and sign documents remotely through an encrypted video session, available 24/7.
Typical mistakes to avoid
- Failing to accurately complete the property description, which may lead to disputes.
- Not specifying or misunderstanding the payment conditions which could void the waiver.
- Omitting required signatures or notarization leading to the form being ineffective.
Benefits of using this form online
- Convenience of downloading the form anytime from anywhere.
- Editability allows customization to fit specific project needs.
- Access to legal templates prepared by licensed attorneys for reliability.
Form popularity
FAQ
An unconditional mechanic's lien waiver states the contractor has in fact been paid in full for the stated work. Write the name of the maker of the check in the space provided on the mechanic's lien release form. Fill in the amount of the payment. Write the name of contractor the payment is being made to.
Name of Claimant. This is the name the party to be paid, and the party who will be signing the lien waiver document. Name of Customer. Job Location. Owner. Exceptions. Claimant's Signature. Claimant's Title. Date of Signature.
It basically states that you've paid the subcontractor what is owed, they accept the payment in full, and they waive the right to put a lien on your property. Simply present this form to the subcontractor with your payment and ask them to sign it. Make sure you get their signature!
Lien waivers that are given after payment is received and which generally cover payments received in a prior pay period are considered trailing lien waivers.Lien waiv- ers are typically provided with each requisition during the course of the project and at final completion of the project.
A lien release is a document that is filed in the public land records as the official notice that the lien is removed. Once payment has been received, a contractor has a duty to remove any lien that was filed against the property.
The main purpose of a lien waiver is to provide protection to the paying party. In exchange for such payment, the lien waiver waives the payee's right to file a lien for the exact value of the payment they have received.
An "Unconditional Waiver and Release Upon Final Payment" extinguishes all claimant rights upon receipt of the payment. A "Conditional Waiver and Release Upon Final Payment" extinguishes all claimant rights upon receipt of the final payment with certain provisions.
An unconditional release means that there are no restrictions on the release of the lien. This type of lien release is often used in final project documents to confirm that the project is complete, payment has occurred, and you release all future rights to file liens on the project.
Satisfy the terms of the loan by paying the balance of the loan back to the lender, including any interest incurred. If you don't receive the lien release, submit a request to your lender for proof that the loan has been satisfied.
