Mechanics' Lien Waiver and Release

MECHANICS' LIEN WAIVER AND RELEASE

State of Alabama

PRACTITIONER NOTES AND INSTRUCTIONS

Overview of Alabama Mechanics' Lien Waiver Law

Alabama does not prescribe statutory lien waiver forms. Unlike states such as Florida or Georgia, Alabama law does not mandate specific language or formats for lien waivers. Practitioners must draft waivers carefully to ensure they clearly express the intent of the parties.

Key Alabama Lien Law Provisions

Advance Waiver of Lien Rights

Alabama does not expressly prohibit advance waivers of lien rights. A contractual "no-lien clause" may be enforceable if the intent to waive lien rights is clearly expressed. However, practitioners should exercise caution, as courts may scrutinize such clauses for fairness and clarity.

When to Use Each Waiver Form

1. Conditional Waiver on Progress Payment — Use when a progress payment has been requested or tendered but the check has not yet cleared. The waiver becomes effective only upon actual receipt and clearance of funds.

2. Unconditional Waiver on Progress Payment — Use after a progress payment has been received and the funds have cleared. This is an irrevocable waiver for the amount stated.

3. Conditional Waiver on Final Payment — Use when the final payment has been tendered but not yet cleared. Waiver is conditioned on actual receipt of cleared funds.

4. Unconditional Waiver on Final Payment — Use after the final payment has been received and cleared. This constitutes a complete and irrevocable release of all lien rights on the project.

Important Warnings

WARNING: Alabama does not require notarization for lien waivers; however, notarization is strongly recommended for evidentiary purposes and to facilitate recording if needed.

WARNING: A lien waiver is NOT the same as a lien release. A lien release (satisfaction) is filed with the probate court to remove a recorded lien from the property records. See Ala. Code § 35-11-232.

WARNING: Ensure the waiver specifically identifies the property, the amount being waived, and the time period covered. Ambiguous waivers may be unenforceable.

FORM 1: CONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT

(Alabama — Effective Only Upon Clearance of Payment)

NOTICE: This document waives and releases lien rights only to the extent and through the date stated below, and only upon the condition that payment is actually received and the check clears. This document does not affect lien rights for labor, services, equipment, or materials furnished after the Through Date, nor does it affect lien rights for retainage, pending change orders, or claims for amounts not included in this waiver.

Project Information:

Claimant Information:

Payment Information:

CONDITIONAL WAIVER AND RELEASE

Upon receipt and clearance of payment in the amount of $[________________________________] from [________________________________] (Payor), the undersigned Claimant hereby conditionally waives and releases any and all mechanics' lien rights, materialmen's lien rights, and any other lien rights arising under Alabama Code Title 35, Chapter 11, Article 5, Division 8, for labor, services, equipment, or materials furnished to the above-described Property through the Through Date stated above, to the extent of the amount stated.

This waiver and release is conditioned upon actual receipt of payment and clearance of the above-referenced check or instrument of payment. If payment is not received, or if the check or instrument fails to clear for any reason, this waiver and release shall be null and void, and the undersigned shall retain all lien rights as though this document had not been executed.

Exceptions. This waiver and release does NOT cover and the undersigned expressly reserves lien rights for:

☐ Retainage in the amount of $ [________________________________]
☐ Pending change orders, specifically: [________________________________]
☐ Disputed claims in the amount of $ [________________________________]
☐ Labor, services, equipment, or materials furnished after the Through Date
☐ Other: [________________________________]

Claimant Certification. The undersigned certifies that all debts owed to subcontractors, laborers, and material suppliers for work covered by this waiver through the Through Date have been paid or will be timely paid from the progress payment referenced herein.

Signature:

Claimant Signature: ______________________________

Printed Name: [________________________________]

Title: [________________________________]

Company: [________________________________]

Date Signed: [__/__/____]

FORM 2: UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT

(Alabama — Irrevocable Upon Execution)

NOTICE: This document waives and releases lien rights unconditionally and irrevocably to the extent and through the date stated below. This document is effective immediately upon execution regardless of whether payment has been received. The undersigned should NOT execute this document unless payment has actually been received and the check has cleared.

Project Information:

Claimant Information:

Payment Information:

UNCONDITIONAL WAIVER AND RELEASE

The undersigned Claimant hereby unconditionally and irrevocably waives and releases any and all mechanics' lien rights, materialmen's lien rights, and any other lien rights arising under Alabama Code Title 35, Chapter 11, Article 5, Division 8, for labor, services, equipment, or materials furnished to the above-described Property through the Through Date stated above, to the extent of the amount of $[________________________________] received.

This waiver and release is unconditional and effective immediately upon execution. It is binding regardless of any subsequent dispute, non-payment of other amounts, or other claim by the undersigned.

Exceptions. This waiver and release does NOT cover and the undersigned expressly reserves lien rights for:

☐ Retainage in the amount of $ [________________________________]
☐ Pending change orders, specifically: [________________________________]
☐ Labor, services, equipment, or materials furnished after the Through Date
☐ Other: [________________________________]

Claimant Certification. The undersigned certifies that payment in the amount stated above has been received in full and that the check or other instrument of payment has cleared. The undersigned further certifies that all debts owed to subcontractors, laborers, and material suppliers for work covered by this waiver through the Through Date have been paid or will be timely paid.

Signature:

Claimant Signature: ______________________________

Printed Name: [________________________________]

Title: [________________________________]

Company: [________________________________]

Date Signed: [__/__/____]

FORM 3: CONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT

(Alabama — Effective Only Upon Clearance of Final Payment)

NOTICE: This document waives and releases ALL lien rights on the project, conditioned upon actual receipt and clearance of the final payment. Upon clearance, this document shall constitute a full and final waiver of all lien rights. If payment is not received or does not clear, this document shall have no effect.

Project Information:

Claimant Information:

Payment and Contract Information:

CONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT

Upon receipt and clearance of final payment in the amount of $[________________________________] from [________________________________] (Payor), the undersigned Claimant hereby conditionally waives and releases any and all mechanics' lien rights, materialmen's lien rights, bond rights, and any other lien rights arising under Alabama Code Title 35, Chapter 11, Article 5, Division 8, for all labor, services, equipment, or materials furnished to the above-described Property in connection with the Project identified above.

This waiver and release is conditioned upon actual receipt of payment and clearance of the above-referenced check or instrument of payment. If the final payment is not received, or if the check or instrument fails to clear for any reason, this waiver and release shall be null and void, and the undersigned shall retain all lien rights as though this document had not been executed.

This waiver and release covers ALL work, labor, services, equipment, and materials furnished by the undersigned on the Project from commencement through completion, including all retainage, change orders, and extras, with the following exceptions:

☐ No exceptions — full and final release of all amounts
☐ Disputed amounts totaling $ [________________________________], described as: [________________________________]

Claimant Certification. The undersigned certifies that upon receipt and clearance of the final payment, all debts owed to subcontractors, sub-subcontractors, laborers, and material suppliers for work on the Project will be paid in full.

Signature:

Claimant Signature: ______________________________

Printed Name: [________________________________]

Title: [________________________________]

Company: [________________________________]

Date Signed: [__/__/____]

FORM 4: UNCONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT

(Alabama — Irrevocable Full and Final Release)

NOTICE: This document constitutes a full, final, unconditional, and irrevocable waiver and release of ALL lien rights on the project. The undersigned should NOT execute this document unless the final payment has been received in full and the check has cleared. Once signed, this waiver cannot be revoked or withdrawn.

Project Information:

Claimant Information:

Payment and Contract Information:

UNCONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT

The undersigned Claimant hereby unconditionally and irrevocably waives and releases any and all mechanics' lien rights, materialmen's lien rights, bond rights, and any other lien rights arising under Alabama Code Title 35, Chapter 11, Article 5, Division 8, for all labor, services, equipment, or materials furnished to the above-described Property in connection with the Project identified above.

This waiver and release is unconditional and irrevocable. It covers ALL work, labor, services, equipment, and materials furnished by the undersigned on the Project from commencement through final completion, including all retainage, change orders, extras, and any other amounts due or claimed to be due.

The undersigned acknowledges and represents that:

(a) The total contract price, including all approved change orders, was $[________________________________];

(b) The undersigned has received total payments of $[________________________________], which constitutes payment in full for all labor, services, equipment, and materials furnished on the Project;

(c) No further amounts are due or owing to the undersigned in connection with the Project;

(d) All subcontractors, sub-subcontractors, laborers, and material suppliers engaged by the undersigned on the Project have been paid in full or will be paid in full from the final payment received; and

(e) The undersigned has no outstanding or pending claims, disputes, or demands against the Property Owner, Hiring Party, or the Property in connection with the Project.

Signature:

Claimant Signature: ______________________________

Printed Name: [________________________________]

Title: [________________________________]

Company: [________________________________]

Date Signed: [__/__/____]

NOTARIZATION (RECOMMENDED)

State of Alabama
County of [________________________________]

Before me, the undersigned Notary Public, on this [____] day of [________________________________], 20[____], personally appeared [________________________________], known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature on the instrument, the person or entity upon behalf of which the person acted, executed the instrument.

WITNESS my hand and official seal.

Notary Public Signature: ______________________________

Printed Name: [________________________________]

My Commission Expires: [__/__/____]

[NOTARIAL SEAL]

CERTIFICATE OF DELIVERY

I hereby certify that a true and correct copy of the foregoing Mechanics' Lien Waiver and Release was delivered to:

Delivered by: ______________________________

Date: [__/__/____]

SOURCES AND REFERENCES

• Alabama Code Title 35, Chapter 11, Article 5, Division 8 (§§ 35-11-210 through 35-11-234)
• Alabama Rules of Civil Procedure
• Alabama Secretary of State — Notary Public Division
• Alabama Probate Court filing requirements for lien instruments