Lien Waiver Overview - Private Projects
Whenever payment exchanges hands in the construction industry, parties typically exchange lien waivers to document the receipt of funds and the waiver of any mechanics lien rights. Lien waivers can be regulated heavily, or not regulated at all. Nevertheless, they are almost always a source of confusion with lots of room for error. Below are some frequently asked questions about the lien waiver laws and requirements in Tennessee.
Pre-lien notices for past due accounts has definitely helped us to get the necessary attention from customers to get paid faster.
Tennessee Frequently Asked Questions
Lien Waiver Frequently Asked Questions
No, Tennessee does not provide or require statutory forms for lien waivers.
There is no specific statutory prohibition.
There is no statutory provision prohibiting unconditional lien waivers as long as both parties have clear intention to waive.
Yes, Tennessee statutory law even goes so far as to provide substantial penalties for parties that attempt to violate the provision. A contractor that solicits another party to waive a lien right in violation of the Tennessee law can lose their license.
No. Tennessee statute requires that a lien waiver must be expressly agreed to in writing, but the waiver does not need to be notarized.