Texas is among the states that regulate lien waivers. In Texas, construction participants are expected to use statutory forms for their lien waivers, and these documents must also be notarized.
Having to use statutory forms is actually a good thing. This way, you will not have to worry about signing lien waivers with sneaky provisions that may be disadvantageous to you.
Send a Texas Unconditional Waiver and Release on Progress Payment:Send online today
However, it is still very important that you know what Texas lien waiver to sign and how to fill it out. This guide answers basic questions about preparing a Texas Unconditional Waiver and Release on Progress Payment.
- When do you use a Texas Unconditional Waiver and Release on Progress Payment?
- How to fill out a Texas Unconditional Waiver and Release on Progress Payment
- Best practices before signing a Texas Unconditional Waiver and Release on Progress Payment
When do you use a Texas Unconditional Waiver and Release on Progress Payment?
Ask yourself if you meet these two conditions before signing a Texas Unconditional Waiver and Release on Progress Payment:
1. You have your payment on hand.
Any unconditional waiver in Texas must be signed only when you have received your payment. Once you sign an unconditional lien waiver, you are attesting that you have already gotten paid. Note that cheques and credit card transactions do not count as payment unless the money has been cleared in the bank.
2. You have received only progress payment.
Progress payment implies that your work on a project is still in progress, hence you are still expecting to receive more regular payments in the future. The payment that you have received should not be your final payment yet, because this Texas lien waiver is specific for progress payments only.
There are four types of lien waivers in Texas. If you think you do not meet at least one of the conditions above, consider signing a different type of Texas lien waiver.
How to fill out a Texas Unconditional Waiver and Release on Progress Payment
It is very important that you use the statutory lien waiver form found in the Texas Property Code. The Texas Unconditional Waiver and Release on Progress Payment must look like the following:
“This document waives rights unconditionally and states that you have been paid for giving up those rights. It is prohibited for a person to require you to sign this document if you have not been paid the payment amount set forth below. If you have not been paid, use a conditional release form.”
UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT
“Job No. ___________________
“The signer of this document has been paid and has received a progress payment in the sum of $___________ for all labor, services, equipment, or materials furnished to the property or to _____________________ (person with whom signer contracted) on the property of _______________________ (owner) located at ______________________ (location) to the following extent: ______________________ (job description). The signer therefore waives and releases any mechanic’s lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in the signer’s position that the signer has on the above referenced project to the following extent:
“This release covers a progress payment for all labor, services, equipment, or materials furnished to the property or to __________________ (person with whom signer contracted) as indicated in the attached statement(s) or progress payment request(s), except for unpaid retention, pending modifications and changes, or other items furnished.
“The signer warrants that the signer has already paid or will use the funds received from this progress payment to promptly pay in full all of the signer’s laborers, subcontractors, materialmen, and suppliers for all work, materials, equipment, or services provided for or to the above referenced project in regard to the attached statement(s) or progress payment request(s).
“_________________________________ (Company name)
“By ______________________________ (Signature)
In the form above, the Notice statement must be written in bold type in at least 10-point font size. This is very important as it is specifically required under Texas laws.
You can fill out the rest of the form by simply providing the following information in the blanks:
This is the official project name. Some projects have clear identifiable names but some don’t. If your project does not have an official project name, you may write a description for the project. Make sure to write the project address in the description.
2. Job No.
This is your project number or contract number.
This is the payment amount you have received. Remember that for this specific Texas lien waiver, this payment must be a partial payment for your ongoing work on a project. This must not be your final payment.
5. Person with whom signer contracted
This is the name of the party who hired you for the project.
This is the name(s) of the owner(s) of the property.
This is the project address, including zip code and name of the county.
8. Job description
This is a description of the work that you have furnished to the project, and for which you are relinquishing your lien rights.
This is the date when you sign the lien waiver.
10. Company name, Signature, Title
This is your or your agent’s information, including signature and official title.
Must a Texas Unconditional Waiver and Release on Progress Payment be Notarized?
Yes, Texas requires lien waivers to be notarized. A signed lien waiver that is not notarized will not be enforceable in Texas.
Best practices before signing a Texas Unconditional Waiver and Release on Progress Payment
1. Use the statutory Texas lien waiver form
Remember that Texas strictly mandates its construction parties to use only the valid lien waiver forms described in the Texas Property Code. There are specific instructions for preparing the lien waiver forms, including writing the Notice statement in bold type. Before signing a Texas lien waiver, it is a good idea to countercheck the form you are signing with the statutory form required by the law.
2. Do not forget to have your Texas lien waiver notarized
Aside from using the prescribed lien waiver forms, you are also expected to have your lien waiver notarized in Texas. This is a fairly unique requirement that is not common in most states. However, if you work in Texas, it must be part of your business practices to bring your lien waiver to a notary agent before handing it in.
3. Verify that you have the money on hand
The Texas Unconditional Waiver and Release on Progress Payment is an unconditional lien waiver – it is extremely important to understand that once your sign this form, you also attest that you have already gotten paid. If a cheque bounces or a credit card transaction gets rejected, you can no longer file a Texas mechanics lien over the part of the project covered in the document that you have already signed.
If you are unsure whether this unconditional waiver is the right form for you, consider signing a Texas Conditional Waiver and Release on Progress Payment instead.