Mode
Lien Releases
Civil Code §§ 8120–8138

Lien Releases

What It Is

A Lien Release (or Lien Waiver) is a document that releases lien rights in exchange for payment. California law prescribes four statutory waiver forms — using the wrong type can inadvertently waive rights you intend to keep, or fail to properly release rights the paying party expects you to release. Cover Me identifies the correct form for every payment situation.

When to Use It

Provide a lien waiver whenever you receive a progress payment or final payment on a project. Never sign a waiver before you receive the payment it covers — a Conditional Waiver is safe to sign before funds clear, while an Unconditional Waiver should only be signed after payment is confirmed received. If you have a recorded Mechanics Lien, it must be formally released after full payment.

How Cover Me Handles It

Cover Me reviews your payment status and determines which of the four California waiver types applies. We prepare the document, provide step-by-step serving instructions, and — if a Mechanics Lien is recorded — coordinate the release filing with the county recorder. A supervisor reviews every document before it leaves our office.

Cover Me process
Cover Me documents
What's Included
  • Conditional Waiver on Progress Payment — safe to sign before funds clear
  • Unconditional Waiver on Progress Payment — sign only after payment confirmed
  • Conditional Waiver on Final Payment — used when final payment is expected
  • Unconditional Waiver on Final Payment — full release of all lien rights
  • Release of Mechanics Lien (recorded document) filed with county recorder
  • Release of Stop Payment Notice when applicable

Commonly Asked Questions

1. What happens if I sign the wrong type of waiver?

Signing an Unconditional Waiver before payment clears can permanently release your lien rights even if the check bounces. Cover Me's four-type waiver workflow ensures you always receive the correct form. The Conditional Waiver is the safer choice when payment has not yet cleared your account.

Yes. California law requires you to release a recorded Mechanics Lien within 30 days of receiving a written demand after full payment. Failure to release can result in court-ordered penalties and liability for the owner's attorney's fees. Cover Me coordinates the county recorder release as part of this service.

Yes — it is standard practice for owners and GCs to require a Conditional Waiver before releasing each progress payment. This is a legitimate request and Cover Me can prepare the Conditional Waiver immediately so it does not delay your payment.