Definition of 'Lien Waiver'
A lien waiver is typically used when a debt is paid in full. The creditor will sign the lien waiver, which releases their right to hold the lien on the property. This allows the property owner to sell or refinance the property without the lienholder's consent.
Lien waivers are important documents because they can help to clear title to a property. Title is the legal ownership of a property. When there is a lien on a property, it means that the title is not clear. This can make it difficult to sell or refinance the property. A lien waiver can help to clear title by removing the lien from the property.
There are different types of lien waivers. The most common type is a general lien waiver. This type of waiver releases all liens on a property. There are also specific lien waivers, which release only certain liens. For example, a contractor may file a specific lien waiver to release their lien on a property.
Lien waivers are important documents, and they should be used carefully. It is important to make sure that the lien waiver is valid and that it releases all of the liens on the property. If you are not sure whether a lien waiver is valid, you should consult with an attorney.
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