Conditional Lien Waiver
A lien waiver that only takes effect once the payment actually clears.
What it means
A conditional lien waiver releases lien rights only on the condition that the payment it describes is actually received and clears the bank. Until then, the signer's lien rights remain intact even though the document is signed — which makes it the standard, safer form to exchange at the moment of payment, before a check has cleared. Some states prescribe statutory forms for conditional waivers; formats vary by state.
Why it matters before you sign
A conditional waiver lets both sides make the exchange safely — the payer gets a signed waiver, and the signer keeps lien rights until the money is real.
In a contract, it looks like this
The sub signed a conditional waiver for the April progress payment and exchanged it for the check at the job trailer.
This definition is a general, educational explanation — not legal advice. XOsign provides AI-assisted document tools and does not provide legal advice; consider consulting a qualified attorney for guidance on your specific situation. Requirements vary by state.
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