Lien Waiver

Understand lien waivers in Canadian construction — what they are, how they protect owners, and their role in securing clear title.

Lien Waiver

August 01, 2025


What is a Lien Waiver?

A lien waiver is a legal document in which a contractor, subcontractor, or supplier relinquishes the right to place a lien on a property once payment is received.

Why Lien Waivers Matter in Real Estate

In Canadian construction and real estate, lien waivers protect property owners from claims for unpaid work or materials.



Key points:
  • Issued after payment for services or supplies
  • Helps ensure clear title on completion
  • Often required by lenders before disbursing funds



Understanding lien waivers helps owners and developers manage construction risk and secure financing.

Example of a Lien Waiver in Action

The contractor provided a lien waiver after receiving final payment for the building’s foundation work.

Key Takeaways

  • Waives right to file lien after payment
  • Protects owners from unpaid claims
  • Common in construction projects
  • Facilitates clear title
  • Supports lender disbursements

Related Terms

Additional Terms

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Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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