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Understanding Conditional vs. Unconditional Lien Waivers Under NRS 108.2457: Avoid Prematurely Waiving Your Rights

On Behalf of May Brock Law Group | May 4, 2025 | Firm News, Real Estate Law

What Is a Lien Waiver in Nevada?

A lien waiver is a document used in the construction industry to relinquish a party’s right to file a mechanic’s lien for labor, services, or materials provided on a project. In Nevada, these waivers are governed by NRS 108.2457, which mandates specific forms and conditions for enforceability.

Conditional vs. Unconditional Waivers: What’s the Difference?

Conditional Lien Waivers (Safer for Contractors)
A conditional waiver only becomes effective upon actual receipt of payment (this includes receipt of payment and the payment clearing). This protects the lien claimant from losing lien rights unless payment is actually made. Under NRS 108.2457, there are two types of conditional waivers:

Conditional Waiver and Release Upon Progress Payment
Conditional Waiver and Release Upon Final Payment

Best Practice: Always use a conditional waiver when you receive payment, via a check, and the check has not yet cleared. This will protect your lien rights if the check bounces or payment never arrives.
Unconditional Lien Waivers (High Risk)
An unconditional waiver takes effect immediately upon execution, regardless of whether payment is received. These waivers state that payment has already been made, and that the signer is giving up lien rights for the referenced work period.

Unconditional Waiver and Release Upon Progress Payment
Unconditional Waiver and Release Upon Final Payment

Warning: Signing an unconditional waiver before receiving payment may eliminate your lien rights, even if you are never paid.

Premature Waiver = Lost Lien Rights

One of the most critical risks under Nevada construction law is accidentally waiving lien rights before your payment clears. Once you sign an unconditional lien waiver:

You may not be able to record a mechanic’s lien for that payment period.
You will lose leverage in enforcing the payment.
Courts may even enforce the waiver as a binding relinquishment of your rights.

Compliance with NRS 108.2457: Use the Statutory Forms

Nevada law requires lien waivers to strictly comply with the statutory language in NRS 108.2457(5). Waivers that do not conform may be unenforceable or expose parties to liability.

Make sure your waiver:

Is dated and signed by an authorized party.
Accurately states the amount being waived.
Is conditional unless payment has been received and fully cleared.

Key Takeaways for Nevada Contractors

✅ Use conditional waivers when your payment has not yet cleared.
❌ Never sign an unconditional waiver unless the funds have cleared and are in your account.
📅 Keep track of payment timelines and lien deadlines under NRS Chapter 108.226
📝 Always verify that your lien waiver forms match Nevada’s statutory required formats.

Need Help Protecting Your Lien Rights in Nevada?

At May Brock Law Group, our construction attorneys in Nevada routinely advise contractors, subcontractors, material suppliers and owners on lien waivers, lien recording deadlines, and payment enforcement under Nevada’s mechanic’s lien laws. If you need help reviewing a lien waiver or preserving your payment rights, contact our firm today.

📞 Call us at (702) 388-0404
📧 Email: [email protected]
🌐 Visit: www.maybrocklaw.com