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Whether you鈥檙e a general contractor (GC), subcontractor, or property owner, understanding Tennessee 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.
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 Tennessee lien waivers!
鈥�(For more general information on lien waivers, check out this on-demand webinar: End the Whack-a-Mole: Lien Waiver Best Practice for Subs.)
Tennessee is one of 38 states that doesn鈥檛 provide a specific statutory lien waiver form for parties to fill out. What鈥檚 more, Tennessee doesn鈥檛 stipulate when lien waivers should be exchanged, besides the fact that advance lien waivers aren鈥檛 allowed. However, both conditional lien waivers (those exchanged pursuant to payment with progress pay apps) and unconditional lien waivers (those exchanged after receiving payment and binding upon signing) are accepted in this state.聽
Here鈥檚 what else you need to know when navigating Tennessee lien waivers:
- Any content can be included in the lien waiver and contract, with a twist鈥攖he state strictly . If a contractor 鈥渟olicits any person to sign a contract requiring the person to waive a right of lien,鈥� that laborer can notify the state licensing board to take legal action. The contractor will be asked to remove these provisions unless they want to risk a hearing and the revocation of their contractor鈥檚 license.
- Liens by remote contractors aren鈥檛 allowed if the owner or agent offers them that is 100% of the GC鈥檚 contract price before work starts. The payment bond needs to be 鈥渆xecuted with sufficient surety by one (1) or more sureties鈥� authorized in Tennessee. It also needs to be recorded in the office of the register of deeds in the county in which the property is being worked on.
No specific, statutory lien waiver form is provided by Tennessee state law.
Both conditional and unconditional lien waivers are accepted in Tennessee.
You don鈥檛 need to notarize your Tennessee lien waiver. It鈥檚 okay if the client requests this service, however.
To be considered valid in Tennessee, 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 exchanged after work starts or materials are furnished
It's to waive lien rights in the contract; construction parties can even lose their license for adding such provisions.
Lien rights can be waived before payment in Tennessee.
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.
Tennessee doesn鈥檛 provide parties with a specific, statutory lien waiver form. Create a collaborative review process to protect your lien rights, especially since the form content is not regulated by the state.
Tennessee lien waivers are subject to specific requirements before they鈥檙e considered valid:聽
- They should clearly state the amount being waived and the property to which they apply,聽
- They should be exchanged after work commences or materials are furnished, and
- They must be signed by the party waiving their lien rights.
Tennessee doesn鈥檛 offer a ton of guidance regarding the timing of its lien waivers. 鈥淣o-lien clauses鈥� asking parties to waive their lien rights right in the contract are not allowed, so the exchange must happen after work begins.
When exchanging lien waivers in Tennessee, it鈥檚 best to follow these general rules:
- Conditional lien waivers, which are only effective once payment is received, are exchanged with progress payment applications.
- Unconditional lien waivers, which become binding upon signature, are typically submitted after payment is received. (Signing before payment means you can inadvertently take your lien rights off the table.)
Struggling to remember which lien waivers to use throughout your project? Check out our comprehensive lien waiver guide.
Good news, subs: Adding lien waiver provisions to the contract is in Tennessee. This state goes a step further than most of the other states we鈥檝e reviewed, in that if GCs provide a contract to laborers with clauses that purport to waive their lien rights, any party can notify the state licensing board. If the contractor doesn鈥檛 remove these clauses, the state could revoke their license.
No specific statutes address disputes over Tennessee lien waivers. Don鈥檛 fret; clarifies that liens can and will be enforced 鈥渙nly by the filing of a complaint, petition, or civil warrant.鈥� This means any lien-related issues can be taken to the court of law or chancery court.
If you do end up in a dispute over your Tennessee lien waiver, start by reviewing the lien waiver form and contract to identify your declaration of lien rights. Mediation and negotiation are often the most suggested routes; if it cannot be handled directly, consider taking your dispute to a construction law attorney who is familiar with Tennessee lien laws.
Before starting any construction job, it鈥檚 important to be prepared. Tennessee lien waiver rules and regulations can be tricky鈥攖aking the first steps to familiarize yourself with these documents means understanding legal statutes, licensing rules, and more:
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.