Illinois Waiver and Release of Lien by Contractor
Definition and meaning
The Illinois Waiver and Release of Lien by Contractor is a legal document that allows a contractor to relinquish their right to place a lien on a property for the labor, services, or materials they have provided. This form signifies that the contractor has received payment and releases the property owner from any potential claims regarding payment for work done on the property.
How to complete a form
To complete the Illinois Waiver and Release of Lien, follow these steps:
- Fill in the dates: Enter the date when the form is being completed.
- Complete project details: Provide information about the contracted project, including the property address and the owner's name.
- Sign the form: The contractor must sign the document to validate the waiver.
- Notarization: Have the document notarized to ensure its legality.
Who should use this form
This form is primarily used by contractors who have provided services or materials to a property owner in Illinois. It is important for contractors who want to formally release their lien rights upon receiving payment, ensuring that they cannot claim payment for the same work from the property in the future.
Key components of the form
The Illinois Waiver and Release of Lien contains several critical components, including:
- Identification of Parties: Names of the contractor and the property owner.
- Description of Services: A detailed account of the services or materials provided.
- Unconditional Waiver: A clause indicating that the waiver is unconditional and covers any future claims related to the work performed.
- Notary Public Section: A section for notarization to affirm the authenticity of the signatures.
What to expect during notarization or witnessing
When you go for notarization, ensure you have a valid photo ID with you. The notary will:
- Verify your identity and that you are the person who signed the document.
- Confirm that you understand the content of the document.
- Complete the notarization by signing and stamping the document.
It's important to have all parties present during notarization if required for additional signatures.
Common mistakes to avoid when using this form
Here are some common pitfalls to be mindful of:
- Inaccurate Information: Ensure all names, dates, and property details are correct to avoid any legal complications.
- Failure to Notarize: Not obtaining notarization can render the document invalid.
- Incomplete Sections: Leaving sections blank can result in problems later, so ensure all necessary fields are filled out.
Form popularity
FAQ
Must Illinois lien waivers be notarized?Illinois does not require mechanics lien waivers to be notarized in order to be effective.
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.
Conditional lien waivers are conditioned upon something (typically the receipt of payment).The party receiving payment maintains its right to file a lien until the check is actually cashed; the party making payment will never face double payment (paying the party they hired and also being faced with a lien).
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 waiver is quite common in the construction business. Essentially, it is a document from a contractor, subcontractor, supplier, or another party who holds a mechanic's lien that states they have been paid in full and waive future lien rights to the disputed property.
LIen waivers are not required to be notarized. The primary times that a document needs to be notarized is if it is going to be filed with the county recorder or it is an affidavit. There are some other documents that often use notarization, but lien waivers don't fall into any of those that "need to be notarized."
Conditional lien waivers are provided by contractors or suppliers before they've been paid.The form says they will waive their right to lien once they receive the payment, so they can't file a lien after payment has been received.
A lien waiver is signed before a lien is actually filed. The party submitting the lien waiver states that they waive the right to lien against the project. In some instances, the property owner or general contractor may request that you sign and deliver a lien waiver before payment is disbursed.
