Mechanics' Lien Waiver and Release

MECHANICS' LIEN WAIVER AND RELEASE

State of Maryland

Governed by Maryland Code, Real Property Title 9, Subtitle 1

IMPORTANT MARYLAND-SPECIFIC NOTICES

PROHIBITION ON ADVANCE WAIVERS BY SUBCONTRACTORS (Real Prop. § 9-113): Maryland law strictly prohibits a subcontractor from waiving the right to claim a mechanics' lien by agreement prior to performance ("no-lien clauses"). Any such provision in a contract or separate document is void and unenforceable. However, a general contractor or subcontractor may waive mechanics' lien or bond rights in a document separate from the construction contract after the work has been performed.

NOTICE OF INTENTION (Real Prop. § 9-104): A subcontractor or material supplier who does not have a direct contract with the owner must give written Notice of Intention to the owner before or within 120 days after the subcontractor first furnishes labor or materials. Failure to provide timely notice may limit or extinguish lien rights.

NO MANDATORY WAIVER FORMS: Maryland does not prescribe mandatory statutory lien waiver forms. The form and content of waivers are left to the parties. The forms below follow recognized industry standards.

NOTARIZATION NOT REQUIRED: Maryland does not require lien waivers to be notarized. However, notarization is recommended for waivers that will be recorded with the court.

TWO-STEP LIEN PROCESS: Maryland uses a two-step process: (1) filing a Notice of Intention to claim a lien, and (2) filing a Petition to Establish Lien within 180 days of completion. The mechanics' lien is not perfected until the court enters an order establishing it.

LIEN PETITION DEADLINE: A Petition to Establish a Mechanics' Lien must be filed within 180 days after the work is completed or the materials are furnished (Real Prop. § 9-109).

PROJECT INFORMATION

Project Name: [________________________________]

Project Address/Legal Description: [________________________________]

City: [________________________________] County / Independent City: [________________________________] State: Maryland Zip: [____]

Property Owner: [________________________________]

General Contractor: [________________________________]

Claimant (Waiver Signer): [________________________________]

Claimant's Role:
☐ General Contractor
☐ Subcontractor
☐ Sub-Subcontractor
☐ Material Supplier
☐ Equipment Lessor
☐ Laborer
☐ Design Professional
☐ Other: [________________________________]

Claimant's Address: [________________________________]

Hiring Party (entity that contracted with Claimant): [________________________________]

Notice of Intention Previously Filed: ☐ Yes ☐ No
If Yes, Date of Notice: [__/__/____]
If Yes, Served on Owner: ☐ Yes ☐ No

Petition to Establish Lien Filed: ☐ Yes ☐ No
If Yes, Filing Date: [__/__/____]
If Yes, Court and Case Number: [________________________________]

FORM 1: CONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT

Maryland Conditional Progress Payment Lien Waiver

NOTICE

This document waives and releases mechanics' lien rights effective only upon actual receipt of payment. Rights arising from retention, work performed after the Through Date, or amounts not described below are not affected. This waiver is not an advance waiver prohibited by Real Prop. § 9-113.

Project: [________________________________]

Claimant: [________________________________]

Hiring Party: [________________________________]

Property Owner: [________________________________]

Through Date: [__/__/____]

Conditional Payment Amount: $[________________________________]

Check/Draft Number (if known): [________________________________]

CONDITIONAL WAIVER AND RELEASE

Upon receipt of the payment of $[________________________________] from [________________________________], the undersigned Claimant hereby waives and releases any and all mechanics' lien rights, claim of lien, notice of intention to claim lien, and right to file a petition to establish a lien under Md. Code, Real Prop. § 9-101 et seq. for labor, services, equipment, or materials furnished to the above-described Project through [__/__/____] (Through Date), to the extent of said payment.

This waiver and release is expressly conditioned upon actual receipt of payment and clearance of funds. If payment is not received, or if any check or instrument of payment is dishonored, returned, or fails to clear, this waiver and release shall be null and void and of no force or effect, and all lien rights shall remain fully intact.

This waiver is given contemporaneously with or after receipt of the identified payment for labor, services, equipment, or materials already furnished. This waiver is not an advance waiver of lien rights prohibited by Real Prop. § 9-113.

EXCEPTIONS

This waiver and release does NOT cover and the Claimant expressly reserves all rights for:

1. Retainage in the amount of $[________________________________]
2. Labor, services, equipment, or materials furnished after the Through Date
3. Unpaid change orders or disputed claims: [________________________________]
4. Claims for delay damages or additional costs: [________________________________]
5. Other exceptions: [________________________________]

CERTIFICATION

The undersigned certifies that the foregoing is true and correct and that the undersigned is authorized to execute this document on behalf of the Claimant.

Claimant Signature: ______________________________

Printed Name: [________________________________]

Title: [________________________________]

Company: [________________________________]

Date: [__/__/____]

FORM 2: UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT

Maryland Unconditional Progress Payment Lien Waiver

NOTICE TO CLAIMANT

WARNING: This document waives and releases lien rights unconditionally and immediately upon signing. A person should not rely on this document unless satisfied that the claimant has received payment and that funds have cleared. Under Maryland law (Real Prop. § 9-113), a subcontractor may not waive lien rights in advance of performance; this unconditional waiver may only be signed after the claimant has received actual payment.

Project: [________________________________]

Claimant: [________________________________]

Hiring Party: [________________________________]

Property Owner: [________________________________]

Through Date: [__/__/____]

Payment Amount Received: $[________________________________]

Payment Date: [__/__/____]

UNCONDITIONAL WAIVER AND RELEASE

The undersigned Claimant has been paid and has received a progress payment in the sum of $[________________________________] for labor, services, equipment, or materials furnished to the above-described Project, and hereby unconditionally waives and releases any and all mechanics' lien rights, claim of lien, notice of intention to claim lien, and right to file a petition to establish a lien under Md. Code, Real Prop. § 9-101 et seq. through [__/__/____] (Through Date), to the extent of said payment.

This waiver and release is effective immediately upon execution and is not conditioned upon receipt of future payment.

EXCEPTIONS

This waiver and release does NOT cover and the Claimant expressly reserves all rights for:

1. Retainage in the amount of $[________________________________]
2. Labor, services, equipment, or materials furnished after the Through Date
3. Unpaid change orders or disputed claims: [________________________________]
4. Other exceptions: [________________________________]

CERTIFICATION

The undersigned certifies that payment in the amount stated above has been received and that the information provided herein is true and correct.

Claimant Signature: ______________________________

Printed Name: [________________________________]

Title: [________________________________]

Company: [________________________________]

Date: [__/__/____]

FORM 3: CONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT

Maryland Conditional Final Payment Lien Waiver

NOTICE

This document waives and releases all mechanics' lien rights upon receipt of final payment. This covers all remaining amounts due, including retention, effective only upon actual receipt and clearance of final payment.

Project: [________________________________]

Claimant: [________________________________]

Hiring Party: [________________________________]

Property Owner: [________________________________]

Final Payment Amount: $[________________________________]

Retention Amount Included in Final Payment: $[________________________________]

Total Contract Amount (including all approved change orders): $[________________________________]

CONDITIONAL WAIVER AND RELEASE

Upon receipt of final payment in the amount of $[________________________________] from [________________________________], and upon clearance of said funds, the undersigned Claimant hereby waives and releases any and all mechanics' lien rights, claim of lien, notice of intention to claim lien, and right to file a petition to establish a lien under Md. Code, Real Prop. § 9-101 et seq. for all labor, services, equipment, or materials furnished to the above-described Project.

This waiver and release is conditioned upon actual receipt of final payment and clearance of funds. If final payment is not received, or if any check or instrument of payment is dishonored or returned, this waiver and release shall be null and void, and all lien rights shall remain in full force and effect.

This waiver covers all amounts due under the contract, including:

• All progress payments previously received
• All retention/retainage
• All approved change orders
• All claims for extras, additional work, or delay damages

EXCEPTIONS

The Claimant reserves the following disputed claims (if any): [________________________________]

AFFIDAVIT OF PAYMENT

The undersigned further certifies that all subcontractors, material suppliers, and laborers employed by or contracted with the undersigned on this Project have been paid in full or will be paid from the final payment referenced herein.

Claimant Signature: ______________________________

Printed Name: [________________________________]

Title: [________________________________]

Company: [________________________________]

Date: [__/__/____]

FORM 4: UNCONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT

Maryland Unconditional Final Payment Lien Waiver

NOTICE TO CLAIMANT

WARNING: This document waives and releases ALL mechanics' lien rights for all labor, services, equipment, and materials furnished to the Project unconditionally and immediately upon signing. A person should not rely on this document unless satisfied that final payment has been received and funds have cleared.

Project: [________________________________]

Claimant: [________________________________]

Hiring Party: [________________________________]

Property Owner: [________________________________]

Final Payment Amount Received: $[________________________________]

Date Final Payment Received: [__/__/____]

Total Contract Amount (including all approved change orders): $[________________________________]

UNCONDITIONAL WAIVER AND RELEASE

The undersigned Claimant has received final payment in the amount of $[________________________________], and hereby unconditionally waives and releases any and all mechanics' lien rights, claim of lien, notice of intention to claim lien, and right to file a petition to establish a lien under Md. Code, Real Prop. § 9-101 et seq. for all labor, services, equipment, or materials furnished to the above-described Project.

This waiver and release is effective immediately upon execution, covers all amounts due under the contract, including retention, all change orders, all claims for extras, additional work, or delay damages, and is not conditioned upon receipt of future payment.

The undersigned further certifies that all subcontractors, material suppliers, and laborers employed by or contracted with the undersigned on this Project have been paid in full.

DISPUTED CLAIMS

The Claimant reserves the following disputed claims (if any): [________________________________]

Claimant Signature: ______________________________

Printed Name: [________________________________]

Title: [________________________________]

Company: [________________________________]

Date: [__/__/____]

FORM 5: RELEASE AND SATISFACTION OF ESTABLISHED LIEN

For Use When a Petition to Establish Lien Has Been Granted and the Lien Must Be Released

RELEASE AND SATISFACTION OF MECHANICS' LIEN

State of Maryland )
County / Independent City of [________________________________] )

The undersigned, [________________________________] ("Lien Holder"), in connection with the mechanics' lien established by Order of the Circuit Court for [________________________________] County / Independent City on [__/__/____], Case Number [________________________________], against the following described real property:

Property Description: [________________________________]

Property Address: [________________________________]

Property Owner: [________________________________]

hereby acknowledges full satisfaction and payment of all amounts secured by said mechanics' lien in the total amount of $[________________________________], and hereby releases, discharges, and satisfies said mechanics' lien in its entirety, pursuant to Md. Code, Real Prop. § 9-114.

This Release is filed with the Circuit Court for [________________________________] County / Independent City and is intended to discharge said lien from the public records.

Lien Holder Signature: ______________________________

Printed Name: [________________________________]

Title: [________________________________]

Company: [________________________________]

Date: [__/__/____]

NOTARIZATION (RECOMMENDED)

State of Maryland )
County / Independent City of [________________________________] )

On this [____] day of [________________________________], 20[____], before me, the undersigned Notary Public, 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 that he/she executed the same.

Notary Public: ______________________________

Printed Name: [________________________________]

My Commission Expires: [__/__/____]

[NOTARY SEAL]

PRACTITIONER NOTES AND INSTRUCTIONS

Maryland Two-Step Lien Process

Maryland uses a unique two-step process for establishing mechanics' liens that differs from most states:

Step 1: Notice of Intention (Real Prop. § 9-104)

• Subcontractors and suppliers who do not have a direct contract with the owner must provide a written Notice of Intention to the owner
• Must be given before or within 120 days after the subcontractor first furnishes labor or materials
• A general contractor in direct privity with the owner does not need to provide this notice

Step 2: Petition to Establish Lien (Real Prop. § 9-109)

• Must be filed in the circuit court within 180 days after completion of the work or furnishing of materials
• The court holds a hearing and enters an order establishing the lien if the statutory requirements are met
• The lien does not exist until established by court order

Key Maryland Lien Deadlines

Who May Claim a Lien in Maryland

Under Md. Code, Real Prop. § 9-102, the following persons may claim a mechanics' lien:

☐ Contractors (in direct contract with the owner)
☐ Subcontractors (must provide Notice of Intention)
☐ Material suppliers (must provide Notice of Intention)
☐ Laborers
☐ Architects, engineers, and surveyors
☐ Equipment lessors

The Real Prop. § 9-113 Prohibition (Critical)

Maryland Code, Real Property § 9-113 provides:

"A provision in a construction contract or any other agreement requiring a subcontractor to waive the right to claim a mechanics' lien before the subcontractor has been paid for the labor or materials furnished is void."

Important implications:

1. No-lien clauses in subcontracts are void
2. A subcontractor may waive lien rights in a separate document after performance
3. The prohibition applies specifically to subcontractors (general contractors may have different treatment)
4. A lien waiver given contemporaneously with payment is permissible

Maryland Independent Cities

Maryland has independent cities (e.g., Baltimore City) that are not part of any county. When filing liens or recording documents, ensure the correct jurisdiction is identified. Baltimore City has its own circuit court separate from Baltimore County.

Best Practices for Maryland

1. Subcontractors: Provide Notice of Intention within 120 days. This is a prerequisite to claiming a mechanics' lien if you do not have a direct contract with the owner.

2. File the Petition to Establish Lien within 180 days. This deadline is strictly enforced. The lien does not exist until the court establishes it.

3. Use conditional waivers for progress payments. Protect lien rights until payment is confirmed.

4. Never include a no-lien clause in a subcontract. Such clauses are void under Real Prop. § 9-113 and may expose the drafter to claims.

5. Distinguish between county and independent city jurisdictions. Ensure all filings are made in the correct court.

6. Coordinate with payment bond rights. On bonded projects, lien waivers may or may not affect payment bond claims depending on the waiver language.

MARYLAND-SPECIFIC WARNINGS

WARNING TO CLAIMANT (SUBCONTRACTORS): Under Real Prop. § 9-113, you cannot be required to waive your lien rights in advance of being paid. Any contract provision requiring an advance waiver is void. However, you must still comply with the Notice of Intention requirement (120 days) and Petition to Establish Lien deadline (180 days).

WARNING TO PROPERTY OWNER: Maryland's two-step lien process means that a subcontractor's lien rights may not be apparent from the public records until a Petition to Establish Lien is filed and the court enters an order. Obtain lien waivers from all parties throughout the project to minimize risk.

WARNING REGARDING SCOPE OF WAIVER: Maryland lien waivers may inadvertently waive rights beyond mechanics' lien rights. Carefully review waiver language to ensure it is limited to lien rights and does not waive breach of contract claims, payment bond rights, or other remedies.

This template is provided by ezel.ai for informational purposes only. It does not constitute legal advice. Maryland mechanics' lien law is governed by Md. Code, Real Prop. § 9-101 et seq. Users should consult with a qualified Maryland attorney for advice specific to their situation.