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Waiver and Release of Lien by Claimant Corporation

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Waiver and Release of Lien by Claimant - Corporation

Prepared by, recording requested by
and return to:

Name:

Company:

Address:

City:

State: Zip:

Phone:

Fax:

-----Above this Line for Official Use Only---------

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.

WAIVER AND RELEASE OF LIEN BY CLAIMANT--CORPORATION

The undersigned's contract with (other contracting party)

to provide for the improvement of the property described as:

SEE ATTACHED LEGAL DESCRIPTION AND PLAT

having been fully paid and satisfied, all the undersigned's construction lien rights against such property are hereby waived and released.

Signed on the day of , 20.

DO NOT SIGN BLANK OR INCOMPLETE FORMS. RETAIN A COPY.

Subscribed and sworn to this day of 20 at

Signature and Acknowledgment of Corporation

By:

Print Name:

Its:

Attest:

Corporate Secretary

Print Name:

STATE OF TEXAS

COUNTY OF

This instrument was acknowledged before me on by (name of officer) (title of officer) of (name of corporation acknowledging) a (state of incorporation) corporation, on behalf of said corporation.

Notary Public

Printed Name:

My Commission Expires:

Certificate of Delivery

I, , hereby certify that I have delivered this

day a true and correct copy of the foregoing to by:

Hand Delivery

Mailing a true and correct copy of same by Certified or Registered U.S. Mail, postage prepaid, to

at his/her usual place of business located at

So certified this the day of , 20

Signature

TX Code § 53.152

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What the Waiver and Release of Lien by Claimant Corporation Is

A Waiver and Release of Lien by Claimant Corporation is a written instrument in which a claimant corporation (such as a subcontractor, supplier, or lien claimant entity) formally waives and releases any present or future statutory lien or claim of lien against a specified property or project in exchange for payment or other consideration. The document identifies the claimant, the project or property, the amount being waived, the effective date, and the parties receiving the release. Properly completed, signed, and, where required, notarized, it prevents the claimant from later asserting the released lien rights against the owner, lender, or other stakeholders.

Why a Corporate Lien Waiver Matters

A clear Waiver and Release of Lien by Claimant Corporation provides legal certainty for owners and lenders and confirms payment to the claimant while minimizing future lien claims. It records the transaction, clarifies remaining obligations, and supports project closeout and lien-free title transfer.

Why a Corporate Lien Waiver Matters

Who Commonly Prepares or Receives This Document

Parties on construction and property transactions frequently use corporate lien waivers to document releases tied to partial or final payments.

  • General Contractors and Owners: Use waivers to confirm release of subcontractor or supplier liens after payment; protects property title and loan collateral.
  • Subcontractors and Suppliers: Execute to acknowledge payment and avoid disputes while preserving negotiated retainage or conditional release terms.
  • Lenders and Title Companies: Require recorded waivers to clear encumbrances before funding or issuing title insurance.

Accurate completion by the claimant corporation and verification by recipients reduces payment disputes and supports timely project closeout.

Step-by-step: Completing a Corporate Lien Waiver

Follow these sequential steps to complete the Waiver and Release of Lien by Claimant Corporation accurately and reduce the risk of ineffective releases.

  • 01
    1. Identify Parties: List claimant corporation legal name and recipient entity exactly.
  • 02
    2. Describe Property: Specify project address, parcel, or contract number being released.
  • 03
    3. State Consideration: Record payment amount or conditional terms prompting the release.
  • 04
    4. Sign and Date: Authorized corporate officer signs; include corporate title and date.

Main Components to Include in a Professional Waiver

A robust corporate waiver contains specific elements that establish intent, scope, consideration, and authority to release lien rights.

Claimant Identification

Full corporate legal name, business address, and contact information so identity is clear and traceable for future inquiries or enforcement.

Scope of Release

Precise description of work, invoices, retainage, or phases being waived; state whether the release is partial, conditional, or full to limit ambiguity.

Consideration and Payment

Amount paid or promised, date paid, and any reservation of rights (for example, retainage or conditional final release until cleared funds). Avoid vague language.

Authority and Signatory

Name and title of corporate officer signing the document; include a statement that the signer has authority to bind the corporation and corporate seal if customary.

Notarization and Witness

A notary acknowledgment or witness lines when required by state law or recipient; include RON or in-person notarization details if used.

Governing Law and Remedies

Choice of law clause and statement of remedies for breach, clarifying how disputes about the release will be resolved.

Essential Data Elements to Verify

Claimant Name: Full corporate name
Recipient Name: Owner or lender name
Property Info: Address or parcel ID
Consideration: Exact dollar amount
Effective Date: MM/DD/YYYY
Signatory Title: Officer title and authority

How to Configure an Online Waiver Workflow

When preparing an e-submission, configure fields, signer order, and authentication to match legal and recipient requirements.

Field Configuration
Signature Field Require signer name, title, and date
Notary Block Include conditional RON/Notary fields if jurisdiction requires notarization
Authentication Use email link or SMS code for signer verification; upgrade to KBA for higher assurance
Routing Order Set recipient review before final signer to ensure correctness

Digital Signing and Platform Needs

Confirm the eSignature platform supports required authentication, audit trails, and notary workflows before sending the waiver.

  • Authentication: Email, SMS, KBA or advanced methods
  • Audit Trail: Timestamps, IP, and action log
  • Notary Integration: Support for RON or in-person acknowledgements

Choose a platform that preserves a tamper-evident signed PDF and retains a verifiable audit trail to satisfy ESIGN and UETA evidentiary needs.

Typical Routing for an Electronic Corporate Lien Waiver

A standard eWorkflow moves the document from preparer to claimant to recipient with verification and record retention steps.

  • Upload Document: Sender uploads the waiver template and populates fields
  • Assign Signers: Place signature and title fields for claimant and any witnesses
  • Signer Authentication: Signers verify identity via email link or stronger methods
  • Finalize and Store: Signed PDF and audit trail are archived for recordkeeping

Timing Considerations and Deadlines to Watch

Timing affects enforceability and lien rights; align waiver dates with payment dates and statutory filing windows to avoid disputes.

Payment Date:

Record the date funds were delivered or cleared

Effective Date:

Set as MM/DD/YYYY to match payment or conditional release

Filing Window:

State lien filing deadlines vary; act before statutory cutoffs

Record Retention:

Keep executed copies per retention rules below

Notary Timing:

Complete any notarization concurrent with signature date

Key Processing Milestones for a Waiver Transaction

Follow this milestone sequence to track a waiver from issuance to final archival and title clearance.

01

Draft and Review

Prepare waiver and confirm amounts and property details

02

Signatory Authorization

Verify corporate signer's authority and obtain signature

03

Notarization Stage

Perform RON or in-person notarization if required

04

Final Delivery

Send executed copy to owner, lender, and title agent

Common Preparation Errors to Avoid

  • Incorrect claimant name or using a trade name instead of the legal corporate name can render the release ineffective and invite litigation.
  • Vague scope language such as 'all claims' without specifying the project, invoices, or dates can create ambiguity about what is released.
  • Failing to tie the waiver to a specific payment event (cleared funds vs. check delivered) can permit later disputes over whether payment was completed.
  • Omitting notarization or witness blocks when the jurisdiction or recipient requires them may prevent acceptance by title companies or lenders.

Consequences and Legal Risks of Improper Waivers

Invalid Release: May permit the claimant to later assert a lien
Title Encumbrance: Uncleared liens can block financing or sale
Payment Disputes: Ambiguous waivers increase litigation risk
Regulatory Risk: Noncompliance with notarization laws may limit enforceability
Financial Exposure: Owner or lender may face unreleased claims
Reputational Harm: Mistakes can delay projects and increase costs

Illustrative Use Cases for a Corporate Lien Waiver

Practical examples show how waivers are used in project payment flows and title clearance scenarios.

Case Study 1

A subcontractor issues a partial waiver after receiving payment for a monthly draw

  • Waiver specifies project, invoice numbers, and retained amount
  • The owner accepts the waiver, disburses funds to the contractor, and the claimant retains separate rights for remaining unpaid work until final release.

Case Study 2

A supplier provides a conditional final waiver tied to cleared funds

  • Supplier indicates bank clearance date as condition
  • Title company requires the executed waiver before closing; funds are released once the condition is satisfied and the waiver becomes unconditional.

Practical Tips for Accurate and Efficient Completion

Adopt consistent procedures and verification steps to ensure waivers are enforceable and accepted by recipients.

Use Exact Legal Names
Match corporate names to formation documents; verify via state business registry to avoid identity disputes.
Tie Waivers to Payment Events
Specify whether the waiver is unconditional or contingent on cleared funds; include dates and payment references.
Maintain Audit Trails
Preserve signed PDFs, timestamps, IP logs, and notarization records to support ESIGN and UETA evidentiary requirements.
Confirm Signatory Authority
Obtain corporate resolution or delegation when necessary to demonstrate the signer's authority to bind the claimant corporation.

eSignature Vendor Pricing Snapshot for Executing Waivers

Compare common eSignature vendor starting prices and feature highlights relevant to executing and storing signed waivers.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varied Varied Varied Varied
Bulk Send Yes Varied Varied Varied Varied
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No envelope cap 100 envelopes/user/year Varied Varied Varied

Frequently Asked Questions About Corporate Lien Waivers

Answers to common questions about validity, signature authority, notarization, and electronic execution of waiver documents.


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