Lien Waivers & Releases and Stop Payment Notices

Two more payment tools that go hand-in-hand with the mechanics lien: the waiver/release you sign to get paid, and the stop payment notice that grabs the money instead of the property.

1. The four statutory waiver & release forms

Every time you take a payment, the owner or GC will ask you to sign a waiver giving up lien rights for that payment. California has exactly four statutory forms — pick by conditional vs. unconditional and progress vs. final:

FormCivil CodeEffective when…
Conditional waiver — Progress payment§8132only when you're actually paid
Unconditional waiver — Progress payment§8134immediately on signing
Conditional waiver — Final payment§8136only when you're actually paid
Unconditional waiver — Final payment§8138immediately on signing
  • Conditional = the release only takes effect once payment clears. Safe to sign before you have the money (e.g., to release a check).
  • Unconditional = the release is effective the moment you sign — even if you're never paid. Only sign an unconditional waiver after the money is actually in hand.

More Lien Law lessons

Browse the full C-10 curriculum or try the practice test.