What is Lien Waiver?

Definition

A lien waiver is a legal document in which a contractor, subcontractor, or material supplier relinquishes their right to file a mechanic's lien against the property upon receiving payment for work performed or materials delivered. Lien waivers are collected during construction and renovation projects to protect the property from encumbrances. In the CAM context, lien waivers are relevant when operating expenses include maintenance, repair, or improvement work performed by outside contractors. Property controllers should ensure lien waivers are obtained for significant vendor payments included in CAM pools, particularly for capital-adjacent maintenance work that might be challenged by tenants during an audit. Proper lien waiver documentation strengthens the landlord's position when defending the recoverability of contested expenses.