What Are Lien Waivers and Why They Matter

Definition of lien waivers, why banks require them, and protection against double-payment.

A lien waiver is a document from a contractor or supplier addressing lien rights connected to work or payment. Requirements differ by project, lender, jurisdiction, contract, and payment.

In OwnerDraw, waiver requirement, document type, signature status, draw funding, vendor payment, and payment clearance are tracked separately. The app helps prepare, route, store, and track documents; it does not determine legal sufficiency or lender acceptance.

For the operating steps and the action to take for each status, see [Lien Waivers in OwnerDraw: What to Send and When](/help/lien-waivers/lien-waivers-page-guide).