Waivers and Releases for Liens and Payment Bond Claims

During the 82^nd Legislative Session, House Bill 1456 was passed which provides statutory forms for waiver and release of mechanic’s liens and payment bond claims. Four statutory forms were created: (a) Conditional Waiver and Release on Progress Payment; (b) Unconditional Waiver and Release on Progress Payment; (c) Conditional Waiver and Release on Final Payment; and (d) Unconditional Waiver and Release on Final Payment.

The new law is effective for contracts entered into on or after January 1, 2012. In order for a waiver and release to be effective, the form of lien waiver and release must be in substantial compliance with the statutory forms.

The new law is set out in Subchapter L added to Chapter 53 of the Texas Property Code entitled “Waiver and Release of Lien or Payment Bond Claim.” The text of the new law can be found here.

Article by Sarah F. Berry