Exhibit A. Anti-Advance Waiver Of Lien Rights Statutes in the 50 States and DC
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1 Exhibit A Anti-Advance Waiver Of Lien Rights Statutes in the 50 States and DC STATE ANTI- ADVANCE WAIVER OF LIEN? STATUTE(S) ALABAMA ALASKA Yes (a) Except as provided under (b) of this section, a written waiver of lien or stop-lending notice of rights created under AS signed by a claimant requires no consideration and is valid and binding. A waiver permitted under this section may not relate to labor, materials, services, or equipment furnished after the date the waiver is signed by the claimant Waiver of lien rights, AK ST (a) ARIZONA A. An owner or contractor by any term of their contract, or otherwise, may not waive or impair the claims or liens of other persons whether with or without notice except by their written consent or as prescribed by Any term of the contract to that effect shall be void. Any written consent given by any claimant pursuant to this section is unenforceable unless the claimant executes and delivers a waiver and release. This waiver and release is effective to release the property for the benefit of the owner, the construction lender, the contractor and the surety on a payment bond from claims and liens only if the waiver and release follows substantially one of the forms set forth in this section and is signed by the claimant or his authorized agent, and, in the case of a conditional release, if there is evidence of payment to the claimant. Evidence of payment may be by the claimant's endorsement on a single or joint payee check that has been paid by the bank on which it was drawn or by written acknowledgment of payment given by the claimant Waiver of lien, AZ ST (A) ARKANSAS CALIFORNIA Yes A claimant's waiver and release does not release the owner, construction lender, or surety on a payment bond from a lien or claim unless both of the following conditions are satisfied: (a) The waiver and release is in substantially the form provided in this article and is signed by the claimant. (b) If the release is a conditional release, there is evidence of payment to the claimant Release from lien or claim; conditions, CA CIVIL 8124(b) - This section appears to assume releases to lien 1
2 rights on activities to date. COLORADO (1) agreement to waive, abandon, or refrain from enforcing any lien provided for by this article shall be binding except as between the parties to such contract. The provisions of this article shall receive a liberal construction in all cases.(2) An agreement to waive lien rights shall contain a statement, by the person waiving lien rights, providing in substance that all debts owed to any third party by the person waiving the lien rights and relating to the goods or services covered by the waiver of lien rights have been paid or will be timely paid Agreement to waive--effect, CO ST CONNECTICUT Yes (a) Any provision in a construction contract or any periodic lien waiver issued pursuant to a construction contract that purports to waive or release the right of a contractor, subcontractor or supplier engaged to perform services, perform labor or furnish materials under the construction contract to (1) claim a mechanic's lien, or (2) make a claim against a payment bond, for services, labor or materials which have not yet been performed and paid for shall be void and of no effect l. Clauses waiving right to claim mechanic's lien or claim against a payment bond void, CT ST l(a) DELAWARE Yes (b) twithstanding the provisions of any other law, except as provided in this subsection: Any contract, any agreement or understanding whereby the right to file or enforce any lien created under this chapter is waived, shall be void as against public policy and wholly unenforceable. This section shall not preclude a requirement for a written waiver of the right to file a mechanics' lien executed and delivered by a contractor, subcontractor, material supplier or laborer simultaneously with or after payment for the labor performed or the materials supplied has been made to such contractor, subcontractor, material supplier or laborer nor shall this section be applicable to a written agreement to subordinate, release or satisfy all or part of such lien made after a statement of claim has been filed under this chapter. thing in this subsection shall amend, exempt, limit or qualify the provisions of 2707 of this title Waiver of lien, DE ST TI (b) DISTRICT OF COLUMBA (a) A lien in favor of parties so employed by the original contractor shall be subject to the terms and conditions of the contract, if any, between the owner and the original contractor except any terms and conditions therein that relate to the original contractor's right to waive liens on behalf of the parties employed Conditions and limitations., DC CODE (a) FLORIDA Yes (2) A right to claim a lien may not be waived in advance. A lien right may be waived only to the extent of labor, 2
3 services, or materials furnished. Any waiver of a right to claim a lien that is made in advance is unenforceable Waiver or release of liens, FL ST (2) GEORGIA Yes (a) A right to claim a lien or to claim upon a bond may not be waived in advance of furnishing of labor, services, or materials. Any purported waiver or release of lien or bond claim or of this Code section executed or made in advance of furnishing of labor, services, or materials is null, void, and unenforceable Waiver and release of lien and bond rights, GA ST (a) HAWAII IDAHO ILLINOIS Yes (d) An agreement to waive any right to enforce or claim any lien under this Act, or an agreement to subordinate the lien, where the agreement is in anticipation of and in consideration for the awarding of a contract or subcontract, either express or implied, to perform work or supply materials for an improvement upon real property is against public policy and unenforceable. 60/1. Contractor defined; amount of lien; waiver of lien; attachment of lien; agreement to waive; when not enforceable, IL ST CH /1(d) INDIANA Yes (b) A provision in a contract for the improvement of real estate in Indiana is void if the provision requires a person described in section 1 of this chapter who furnishes labor, materials, or machinery to waive a right to: (1) a lien against real estate; or (2) a claim against a payment bond; before the person is paid for the labor or materials furnished Waiver of right to a lien voiding contract, IN ST (b) IOWA KANSAS Yes (b) The following provisions in a contract for private construction shall be against public policy and shall be void and unenforceable: (2) a provision that purports to waive, release or extinguish rights provided by article 11 of chapter 60 of the Kansas Statutes Annotated, and amendments thereto, except that a contract may require a contractor or subcontractor to provide a waiver or release of such rights as a condition for payment, but only to the extent of the amount of payment received; and Private construction contracts; payment provisions; provisions against public policy, void, unenforceable; failure to pay, KS ST (b)(2) KENTUCKY Yes (2) The following provisions in a contract for construction shall be against the public policy of this Commonwealth 3
4 and shall be void and unenforceable: (b) A provision that purports to waive, release, or extinguish rights provided by KRS Chapter 376, with the exception of partial waivers of lien rights provided by the contractor or subcontractor for progress payments; or Conditions governing enforceability of construction contracts; payment of amounts due, KY ST (2)(b) LOUISIANA MAINE MARYLAND Yes Waiver provisions barred from executory contracts, MD REAL PROP MASSACHUSETTS See statute referenced 32. Void and unenforceable covenants, promises, etc.; exceptions, MA ST MICHIGAN Yes (1) A person shall not require, as part of any contract for an improvement, that the right to a construction lien be waived in advance of work performed. A waiver obtained as part of a contract for an improvement is contrary to public policy, and shall be invalid, except to the extent that payment for labor and material furnished was actually made to the person giving the waiver. Acceptance by a lien claimant of a promissory note or other evidence of indebtedness from an owner, lessee, or contractor shall not of itself serve to waive or discharge otherwise valid construction lien rights Waiver of construction lien, MI ST (1) MINNESOTA Yes Subd 2. Waiver of lien or claim. Provisions contained in, or executed in connection with, a building and construction contract requiring a contractor, subcontractor, or material supplier to waive the right to a mechanics lien or to a claim against a payment bond before the person has been paid for the labor or materials or both that the person furnished are void and unenforceable. This provision shall not affect the validity of a waiver as to any third party who detrimentally relies upon the waiver Building and construction contracts; prohibited provisions, MN ST (Subd 2) MISSISSIPPI Yes (1) A right to claim a lien or to claim upon a bond may not be waived in advance of furnishing of labor, services or materials. Any purported waiver or release of lien, bond claim or this article executed or made in advance of furnishing labor, services or materials is null, void and unenforceable Waiver and release of lien and bond rights, MS ST (1) MISSOURI Yes 1. An agreement by an original contractor, subcontractor, supplier or laborer to waive any right to enforce or claim any lien authorized under this chapter, where the agreement is in anticipation of and in consideration for the awarding of a contract or subcontract to perform work or supply materials for an improvement upon real property, 4
5 whether expressly stated or implied, is against public policy and shall be unenforceable. The provisions of this section shall not prohibit subordination or release of a lien authorized under this chapter Certain agreements to waive rights under this chapter are unenforceable--exception, MO ST (1) MONTANA Yes A construction contract may not contain provisions requiring a contractor, subcontractor, or material supplier to waive the right to a construction lien or a right to a claim against a payment bond before the contractor, subcontractor, or material supplier has been paid for the labor, materials, or both labor and materials, furnished by the contractor, subcontractor, or material supplier Construction contracts requiring lien or bond waiver void, MT ST NEBRASKA (1) A written waiver of construction lien rights signed by a claimant requires no consideration and is valid and binding, whether signed before or after the materials or services were contracted for or furnished. Ambiguities in a written waiver are construed against the claimant. NEVADA See statutes referenced Waiver of construction lien rights; what constitutes; validity; effect, NE ST (1) (2) A condition, stipulation or provision in a contract or other agreement for the improvement of property or for the construction, alteration or repair of a work of improvement in this State that attempts to do any of the following is contrary to public policy and is void and unenforceable: (a) Require a lien claimant to waive rights provided by law to lien claimants or to limit the rights provided to lien claimants, other than as expressly provided in NRS to , inclusive Waiver or modification of right, obligation or liability set forth in NRS to , inclusive, prohibited; certain conditions, stipulations or provisions of contract for improvement of property or construction, alteration or repair of work of improvement void and unenforceable, NV ST (2)(a) See also: Term of contract that attempts to waive or impair lien rights of contractor, subcontractor or supplier void; requirements for enforceability of waiver or release of rights of lien claimant; effect of payment in form of two-party joint check; forms, NV ST NEW HAMPSHIRE NEW JERSEY Yes Waivers of construction lien rights are against public policy, unlawful, and void, unless given in consideration for payment for the work, services, materials or equipment provided or to be provided, and such waivers shall be 5
6 effective only upon and to the extent that such payment is actually received. 2A:44A-38. Waiver of construction lien rights unlawful and deemed void; exceptions, NJ ST 2A:44A-38 NEW MEXICO NEW YORK Yes twithstanding the provisions of any other law, any contract, agreement or understanding whereby the right to file or enforce any lien created under article two is waived, shall be void as against public policy and wholly unenforceable. This section shall not preclude a requirement for a written waiver of the right to file a mechanic's lien executed and delivered by a contractor, subcontractor, material supplier or laborer simultaneously with or after payment for the labor performed or the materials furnished has been made to such contractor, subcontractor, material man or laborer nor shall this section be applicable to a written agreement to subordinate, release or satisfy all or part of such a lien made after a notice of lien has been filed. 34. Waiver of lien, NY LIEN 34 NORTH CAROLINA Yes (f) Waiver of Right to File, Serve, or Claim Liens as Consideration for Contract Against Public Policy. -- An agreement to waive the right to file a claim of lien on real property granted under this Part, or an agreement to waive the right to serve a notice of claim of lien upon funds granted under Part 2 of this Article, which agreement is in anticipation of and in consideration for the awarding of any contract, either expressed or implied, for the making of an improvement upon real property under this Article is against public policy and is unenforceable. This section does not prohibit subordination or release of a lien granted under this Part or Part 2 of this Article. 44A-12. Filing claim of lien on real property, NC ST 44A-12(f) NORTH DAKOTA OHIO OKLAHOMA OREGON PENNSYLVANIA Yes (b) nresidential Buildings. (1) Except as provided in subsection (a), a waiver by a contractor of lien rights is against public policy, unlawful and void unless given in consideration for payment for the work, services, materials or equipment provided and only to the extent that such payment is actually received. (2) Except as provided in subsection (a), a waiver by a subcontractor of lien rights is against public policy, unlawful and void, unless given in consideration for payment for the work, services, materials or equipment provided and only to the extent that such payment is actually received, or unless the contractor has posted a 6
7 bond guaranteeing payment for labor and materials provided by subcontractors Waiver of lien by claimant, PA ST 49 P.S. 1401(b) RHODE ISLAND Yes (b) A covenant, promise, agreement of understanding in, or in connection with or collateral to, a contract or agreement relative to the construction, alteration, repair, or maintenance of a building, structure, appurtenance and appliance, including moving, demolition and excavating connected therewith, purporting to bar the filing of a notice of intention or the taking of any steps to enforce a lien as set forth in this chapter is against public policy and is void and unenforceable. This section shall not preclude a requirement for a written waiver of the right to file a mechanic's lien executed and delivered by a contractor, subcontractor, material supplier, or laborer simultaneously with or after payment for the labor performed or the materials furnished has been made to such contractor, subcontractor, material supplier, or laborer Improvements by consent of owner--contracts barring enforcement of lien against public policy, RI ST (b) SOUTH CAROLINA Yes (2) Any person who wilfully and intentionally certifies to any owner or lending institution by affidavit or otherwise that all persons, firms, or corporations including subcontractors and materialmen having furnished services, labor, or materials or extra items used in the construction, improvement, or repair to the owner's building or real property have been paid in full, when such persons have not been paid in full, except with regard to services or materials concerning which all lien rights have been waived in writing, shall be deemed guilty of a misdemeanor and, upon conviction, shall be fined not more than five thousand dollars or imprisoned not more than sixty days, or both. Provided, however, that an agreement to waive the right to file or claim a lien for labor and materials is against public policy and is unenforceable unless payment substantially equal to the amount waived is actually made Failure to pay laborers and others; falsely certifying that payment has been made; penalties; waiver of right to file or claim lien for labor and material; set off against money owed., SC ST (2) SOUTH DAKOTA Liens for materials, supplies, equipment, and services furnished under construction contracts to contractors or subcontractors and arising under Title 5 or Title 44 of the South Dakota Codified Laws or by virtue of the common law of this state may be expressly waived as provided in this chapter in addition to all other means presently existing under law by which such liens may be waived. 44-9A-1. Liens subject to waiver under chapter, SD ST 44-9A-1 7
8 TENNESSEE Yes (b)(1) Any contract provision that purports to waive any right of lien under this chapter is void and unenforceable as against the public policy of this state Acceptance; waiver; payment bonds, TN ST (b)(1) TEXAS Yes (a) A statement purporting to waive, release, or otherwise adversely affect a lien or payment bond claim is not enforceable and does not create an estoppel or impairment of a lien or payment bond claim unless: (2) the claimant has actually received payment in good and sufficient funds in full for the lien or payment bond claim Conditions for Waiver, Release, or Impairment of Lien or Payment Bond Claim, TX PROPERTY (a)(2) UTAH Yes (1)(a) A right or privilege under this chapter may not be waived or limited by contract. (b) A provision of a contract purporting to waive or limit a right or privilege under this chapter is void. (2) twithstanding Subsection (1), a claimant may waive or limit, in whole or in part, a lien right under this chapter in consideration of payment as provided in Section 38-1a a-105. waiver of rights--exception, UT ST 38-1a-105(1)(a) VERMONT Yes (f) A lien under this section may not be waived in advance of the time such labor is performed or materials are furnished, and any provision calling for such advance waiver shall not be enforceable Extent of lien; notice, VT ST T (f) VIRGINIA Yes C. Any right to file or enforce any mechanics' lien granted hereunder may be waived in whole or in part at any time by any person entitled to such lien, except that a subcontractor, lower-tier subcontractor, or material supplier may not waive or diminish his lien rights in a contract in advance of furnishing any labor, services, or materials. A provision that waives or diminishes a subcontractor's, lower-tier subcontractor's, or material supplier's lien rights in a contract executed prior to providing any labor, services, or materials is null and void. In the event that payments are made to the contractor without designating to which lot the payments are to be applied, the payments shall be deemed to apply to any lot previously sold by the developer such that the remaining lots continue to bear liability for an amount up to but not exceeding the amount set forth in any disclosure statement filed under the provisions of subsection B Lien for work done and materials furnished; 8
9 waiver of right to file or enforce lien, VA ST 43-3(C) WASHINGTON WEST VIRGINIA WISCONSIN (1) Any document signed by a lien claimant or potential claimant and purporting to be a waiver of construction lien rights under this subchapter, is valid and binding as a waiver whether or not consideration was paid therefor and whether the document was signed before or after the labor, services, materials, plans, or specifications were performed, furnished, or procured, or contracted for. Any ambiguity in such document shall be construed against the person signing it. Any waiver document shall be deemed to waive all lien rights of the signer for all labor, services, materials, plans, or specifications performed, furnished, or procured, or to be performed, furnished, or procured, by the claimant at any time for the improvement to which the waiver relates, except to the extent that the document specifically and expressly limits the waiver to apply to a particular portion of such labor, services, materials, plans, or specifications. A lien claimant or potential lien claimant of whom a waiver is requested is entitled to refuse to furnish a waiver unless paid in full for the labor, services, materials, plans, or specifications to which the waiver relates. A waiver furnished is a waiver of lien rights only, and not of any contract rights of the claimant otherwise existing Waivers of lien, WI ST (1) WYOMING Yes (b) contract made between the record owner and the contractor shall be construed to affect or restrict the right of any subcontractor or materialman to file a lien When statement lien to be filed; rights of subcontractor not abridged by contract between owner and contractor; agreement to extend filing period, WY ST (b) 9
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