A lien release that fully forgives lien rights upon full payment is called which?

A lien release that fully forgives lien rights upon full payment is called which?

• A. Conditional Waiver and Release
• B. Partial Waiver and Release
• C. Unconditional Waiver and Release
• D. Release of Lien

Answer: (C)

The concept being tested is how lien waivers and releases work in construction payments. An Unconditional Waiver and Release is the form used when the party agrees to give up all lien rights without any conditions once payment is made. It provides complete cancellation of the lien and clears the claim as soon as the payment is received and the waiver is executed, giving the payer final certainty that no further lien rights remain.

This differs from conditional waivers, which only release lien rights if specific conditions are met (such as funds actually being received and cleared). A partial waiver and release would only release part of the lien, not the whole claim. A Release of Lien, while related, is a general term that doesn’t specify whether the release is unconditional or conditional.