No-Lien Agreement Clause Samples
A No-Lien Agreement is a contractual provision that prevents contractors, subcontractors, or suppliers from placing a lien on a property for unpaid work or materials. In practice, this clause requires all parties involved in a construction or improvement project to waive their right to file a mechanic’s lien, often as a condition for payment or participation in the project. Its core function is to protect property owners from the risk of having their property encumbered by liens, thereby ensuring clear title and reducing potential legal disputes over payment.
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No-Lien Agreement. Supplier shall, prior to the commencement of any Work to be performed at any Purchaser’s Site located in West Virginia (and, if requested by Purchaser, for Work to be performed at any Purchaser’s Site located in Pennsylvania), furnish to Purchaser a duly executed waiver of any and all rights to file or claim a mechanics’, materialmen’s, or other such lien binding upon Supplier and any and all of Supplier’s Subcontractors, suppliers, materialmen, sub-subcontractors, and all other persons or entities that furnish labor, materials, skill, or supervision of the Work, and any parties claiming by, through or under Supplier. Supplier understands and acknowledges that the waivers so furnished will be filed in the public records of the county in which the Work will be performed. Supplier’s Work shall not commence at any such Purchaser’s Site prior to the filing of the applicable waiver. For Work to be performed at any Purchaser’s Site in Ohio, Supplier shall assist Purchaser as requested in the preparation and filing of a notice of commencement as provided for under Section 1311.04 of the Revised Code of Ohio. Supplier shall not commence any Work at any Purchaser’s Site located in Ohio until Purchaser has advised Supplier in writing that this notice of commencement has been filed of record unless otherwise specifically instructed by Purchaser.
No-Lien Agreement. 7.01 If the parties have selected “No-Lien Agreement” (see Term G), an essential element of this Contract is that no lien attach to the Real Estate, to the Work, or to any funds that may be payable on the Contract Price, in any case by reason of non-payment of Builder, or any sub-contractors, mechanics, journeymen, laborers, or persons performing labor upon, or furnishing materials or machinery for, the Work; and that Builder for itself and for all such suppliers and persons WAIVES all right to claim a lien or to file notice of lien for any purpose stated in IC 32-28-3-1. Accordingly, Builder and the owner of the Real Estate (whether Buyer or some other person) have signed, contemporaneously with the signing of this Contract, a No-Lien Agreement (an Approved Form). That agreement is supplemental to, and a part of, this Contract, and the consideration stated in this Contract is likewise the consideration for the No-Lien Agreement.
7.02 This provision as to no-lien having been selected, Builder covenants that it will do no work if a No-Lien Agreement has not been signed by the parties and has not been recorded as required by statute to make it effective. Though the owner of the Real Estate has the responsibility to record, Builder will, for and on behalf of the owner, record the No-Lien Agreement, or cause it to be recorded WITHIN 5