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Whether you鈥檙e a general contractor (GC), subcontractor, or property owner, understanding Maryland lien waivers is crucial. These essential documents function as receipts acknowledging payment up to a specific amount, thereby waiving the party鈥檚 right to file a lien against the property for that amount. While the concept is straightforward, the practical application of lien waivers can be complex.
Several types of lien waivers exist, each requiring submission at specific times during a project. (For a deeper dive into lien waiver basics, refer to The Ultimate Guide to Construction Lien Waivers for Subcontractors.) Moreover, lien waiver requirements vary by state, with each jurisdiction setting its own rules regarding valid forms, contents, and enforcement.聽
Understanding these nuanced requirements is important for subcontractors to maintain compliance, prevent payment disputes, and protect their financial interests. So grab your hard hat, and let鈥檚 dive into the world of Maryland lien waivers!
(For more general information on lien waivers, check out this on-demand webinar: End the Whack-a-Mole: Lien Waiver Best Practice for Subs.)
Maryland lien waivers are largely unregulated because the state doesn鈥檛 require a specific or statutory form. Parties can use their own language, making it vital for GCs, subcontractors, and suppliers to review the lien waiver and corresponding job contract carefully. Not doing so can lead to confusion and inconsistency鈥攁nd even nullify your lien rights.
Here are some important rules to follow when handling lien waivers in Maryland:
- Maryland lien waivers must be completed via express agreement. This means that all parties must clearly outline the terms of their exchange within the contract. Request to remove any unclear clauses or language that doesn鈥檛 define your intention to waive lien rights.
- Maryland note that lien rights cannot be waived in the contract or prior to payment. However, this is only explicitly stated for subcontractors; GCs, suppliers, and other parties should carefully review the contract and advocate for clauses to protect their lien rights.
Maryland doesn鈥檛 require a specific or statutory form for lien waivers.
Both conditional and unconditional lien waivers are accepted in Maryland.
Maryland lien waivers do not need to be notarized (unless the client requests it).
To be considered valid in Maryland, a lien waiver must:聽
- be in writing聽
- be signed by the waiving party
- clearly state the amount being waived and the property to which it applies
- be completed by express agreement
Parties cannot waive subcontractors鈥� lien rights in the contract in Maryland. do not comment on other parties, so review them to understand what applies to you.
Waiving subcontractors鈥� lien rights prior to payment isn鈥檛 allowed in Maryland lien waivers.
Completing Lien Waivers in Siteline
- Create, monitor, and track all your lien waivers in one place.
- Automatically fill out and send the right waiver at the right time.
- Request lower-tier lien waivers from all your sub-tier contractors, vendors, and suppliers鈥攊ndividually or in bulk.
- Securely collect e-signatures, with automatic reminders for any unsigned waivers.
- Package and submit signed waivers to your GCs directly within Siteline.
Maryland doesn鈥檛 require a specific or statutory lien waiver form. Since any form can be used, it鈥檚 critically important for all parties to review the lien waiver and corresponding job contract, and then request the removal of any unsavory clauses.
Since Maryland doesn鈥檛 have specific statutory requirements for the format of lien waivers, a lien waiver in Maryland is considered valid when:
- It clearly states the amount being waived and the property to which it applies,聽
- It is completed by express agreement, and
- It is signed by the party waiving their lien rights.
Timing can be confusing when it comes to Maryland lien waivers.聽
For subcontractors, lien waivers in Maryland can only be exchanged after work has been completed and payment has been granted. specify these protections for subcontractors only. This means that GCs and suppliers should outline protections for their lien rights within the job contract.
Both conditional and unconditional lien waivers are allowed in Maryland. Conditional lien waivers are exchanged with payment applications and don鈥檛 go into effect until payment occurs. Unconditional lien waivers are binding as soon as they are signed; it鈥檚 best practice (and for subs, required by Maryland law) to exchange them only after you鈥檝e been paid for a construction project.
Lien waiver provisions eliminating subcontractors鈥� lien rights cannot be added to Maryland contracts. This explicit protection ends here鈥擥Cs and suppliers should keep an eye out for such clauses and request to remove them.聽
Since parties can use their own forms, project-specific provisions can (and should!) be included within Maryland lien waivers.
If there鈥檚 a dispute over a lien waiver in Maryland, the first step is to review the lien waiver and corresponding job contract. Maryland courts will look to see that the lien waiver was completed by 鈥渆xpress agreement,鈥� where parties directly outline the terms of their exchange. Any unclear language or terms could potentially nullify your lien rights.
Consider reaching out to a construction law attorney familiar with Maryland lien laws if the dispute cannot be resolved directly.
Maryland lien waivers can be complicated. Start with these resources before operating construction jobs in the state:
Automate the process with Siteline. Contractors use our lien waiver tool to digitize all of their lien waiver forms (primary and vendor), send waiver requests to lower-tier contractors and vendors, collect e-signatures, and submit completed waivers to their clients鈥攚ithout ever leaving the system. Siteline even provides centralized tracking to help contractors monitor vendor waiver statuses to see who鈥檚 received the form, who鈥檚 opened it, and who has (or hasn鈥檛) signed. This means contractors can collect waivers faster while eliminating payment delays caused by compliance holds.
Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. We recommend you consult a qualified attorney for advice specific to your situation.