Insurance & LiensQuestion 480 of 1605
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 §8136Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)