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Shoutout to the old real estate lawyer who warned me about lien waiver timing
Last month I subbed a $2,400 drywall job for a general contractor downtown. He asked me to sign a lien waiver before he paid me. I almost signed it right then like I always did. But I remembered a conversation with this 70 year old lawyer named Frank at a chamber breakfast 6 months ago. He said never sign a waiver until the check clears your bank. So I told the GC I'd sign after the deposit hit. He got annoyed but I stood firm. Good thing. The check bounced two days later. Took me 3 more weeks and a certified letter to get paid. Has anyone else had a GC get pushy about lien waivers before the money is actually in your account?
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black.oliver6d ago
Man that story about the crumpled twenties is hilarious and awful at the same time (mostly awful, honestly). What worked for me was getting a separate email address just for lien stuff and sending a polite but firm note saying I'd sign the waiver right after the bank confirmed the deposit. I also started taking a photo of the check front and back before I left the job site. Sounds silly but it gave me something to reference when the GC tried to say he paid me already. The key was being boring and consistent about it, never losing my cool even when he was clearly trying to pressure me. Frank would be proud.
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wadejenkins6d ago
And I'll tell you what, a buddy of mine in painting got burned the exact same way. He signed a lien waiver for a $3,000 job before the check cleared, and the GC ended up filing for bankruptcy two days later. He never saw a dime and couldn't file a lien because he'd already signed away his rights.
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gracej996d ago
Old Frank sounds like a gem... I had a similar thing happen with a kitchen remodel a few years back. The contractor got all huffy when I wouldn't sign until his payment cleared, but it turned out his whole operation was running on credit card float. He ended up paying me in crumpled twenties three weeks late after I left a voicemail for his biggest client about the lien. Funny how quick they find the money when their reputation is on the line...
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