Insurance & LiensQuestion 480 of 1632
A subcontractor signs a lien waiver in exchange for a progress payment that has not yet actually cleared. Which type of waiver is appropriate so the waiver only takes effect once payment is received?
a.An unconditional waiver and release
b.A Notice of Completion
c.A conditional waiver and release
d.A lien release bond
Explanation
A conditional waiver and release becomes effective only when the claimant actually receives the payment. An unconditional waiver releases lien rights immediately and should not be signed until payment has truly cleared.
Law Reference: Civil Code §8136This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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