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Can a customer legally use a signed lien release (ROL) to prevent us from placing a lien if they do not pay?

MarylandLien Waivers
Anonymous Sub-Subcontractor

We are a mechanical contracting vendor. Sub to a sub-contractor. It’s common to sign lien releases before getting paid.

3 replies

Alex Benarroche
Construction Lawyer
Levelset Admin at Levelset
| 334 reviews
Sep 25, 2020
Yes. But it depends on the type of lien waiver/release that's being executed. In scenarios such as this, i.e. providing a conditional waiver is the best way to ensure you are paid. They are just as valid and enforceable as an unconditional waiver; except for one key difference. Conditional waivers are not effective until payment is made. As opposed to unconditional waivers which are effective upon signing. For more on the distinction between the two, see: Unconditional vs. Conditional Lien Waiver and Releases Here are a few additional resources you may find helpful:
NOTE. The information presented here is for informational purposes only. It is not legal advice and should not be construed nor relied upon as such.
Furthermore, this posting does not create an attorney-client relationship. If you need legal advice, seek the counsel of a licensed, local attorney.See More...See More...
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Legal Guard
Joseph Katz
Construction Lawyer
Legal GuardLegal Guard Lawyer
Principal Attorney at Katz Law
| 30 reviews
Sep 27, 2020

gh

Disclaimer: This communication does not constitute legal advice, is not an engagement for the provision of legal services, is not a consultation, and does not
form an attorney-client relationship between Katz Law, LLC and yourself or any other person or entity. In all cases, any particular outcome or resSee More...See More...
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Legal Guard
Joseph Katz
Construction Lawyer
Legal GuardLegal Guard Lawyer
Principal Attorney at Katz Law
| 30 reviews
Sep 27, 2020

In nearly every state of the union, a release is perhaps the strongest defense to a mechanic's lien. Moving forward, it is aboslutely imperative that you mark-up the form releases you receive to indicate that the release is contingent on receipt of the funds. 

Disclaimer: This communication does not constitute legal advice, is not an engagement for the provision of legal services, is not a consultation, and does not
form an attorney-client relationship between Katz Law, LLC and yourself or any other person or entity. In all cases, any particular outcome or resSee More...See More...
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