Mechanics' Lien Waiver and Release

MECHANICS' LIEN WAIVER AND RELEASE

State of Arkansas

PRACTITIONER NOTES AND INSTRUCTIONS

Overview of Arkansas Mechanics' Lien Waiver Law

Arkansas does not prescribe statutory lien waiver forms. The state does not mandate specific language, formats, or templates for mechanics' lien waivers. Parties have flexibility to draft waiver documents as needed, provided the intent to waive is clearly expressed.

Key Arkansas Lien Law Provisions

Advance Waiver of Lien Rights

Arkansas does not expressly prohibit advance waivers of lien rights by statute. There is no specific statutory provision voiding "no-lien clauses" in construction contracts. However, any waiver must clearly express the intent to waive, and courts will interpret ambiguities against the party seeking to enforce the waiver.

Notarization

Arkansas lien waivers are not required to be notarized. Notarization is not a statutory requirement for the validity of a lien waiver in Arkansas. However, notarization is recommended for evidentiary purposes.

When to Use Each Waiver Form

1. Conditional Waiver on Progress Payment — Use when a progress payment check has been tendered but 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 cleared. This is an irrevocable waiver for the amount stated.

3. Conditional Waiver on Final Payment — Use when the final payment check has been tendered but not yet cleared. Full release conditioned on clearance.

4. Unconditional Waiver on Final Payment — Use after final payment has been received and cleared. Full and irrevocable release of all lien rights.

Important Warnings

WARNING: Arkansas distinguishes between liens filed by general contractors (who have a direct contract with the owner) and subcontractors. A subcontractor's lien is limited to the amount owing from the owner to the general contractor at the time of notice.

WARNING: For residential real property, special provisions under Ark. Code Ann. § 18-44-501 et seq. apply to subcontractors. Ensure compliance with applicable residential notice requirements.

WARNING: A lien waiver is not the same as a lien release. If a lien has already been filed, a separate release or satisfaction document must be recorded with the circuit clerk to clear the property record.

FORM 1: CONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT

(Arkansas — 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 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 and materialmen's lien rights arising under Arkansas Code Annotated § 18-44-101 et seq. 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 expressly 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

(Arkansas — 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. 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 and materialmen's lien rights arising under Arkansas Code Annotated § 18-44-101 et seq. 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

(Arkansas — 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 Arkansas Code Annotated § 18-44-101 et seq. for all labor, services, equipment, or materials furnished to the above-described Property in connection with the Project.

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.

This waiver covers ALL work, labor, services, equipment, and materials furnished by the undersigned from commencement through completion, including 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

(Arkansas — 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.

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 Arkansas Code Annotated § 18-44-101 et seq. for all labor, services, equipment, or materials furnished to the above-described Property in connection with the Project.

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

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 $[________________________________], constituting payment in full;

(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 have been paid in full or will be paid in full from the final payment; and

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

Signature:

Claimant Signature: ______________________________

Printed Name: [________________________________]

Title: [________________________________]

Company: [________________________________]

Date Signed: [__/__/____]

NOTARIZATION (OPTIONAL BUT RECOMMENDED)

State of Arkansas
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.

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

• Arkansas Code Annotated § 18-44-101 et seq. (Mechanics' and Materialmen's Liens)
• Arkansas Code Annotated § 18-44-501 et seq. (Residential Real Property Subcontractors)
• Arkansas Rules of Civil Procedure
• Arkansas Secretary of State — Notary Division