A builder sued homeowners over unpaid extras on a construction project. The homeowners had signed lien waivers on the back of construction loan checks. The court ruled that clear, unambiguous lien waivers are binding and prevent contractors from filing liens—but only if there's no fraud or special agreement. The court sent the case back because there were unresolved questions about whether the builder made a mistake, deserved extra payment outside the contract, or had bonding issues that might override the waiver.
Lien waivers printed on checks are legally binding if they're clear and unambiguous—endorsing the check means you waive your lien rights for that payment
Don't sign lien waivers for work you haven't been fully paid for or for extras not yet settled; the waiver will block your lien claim later
If you believe there's fraud, a separate written agreement, or a mistake in what the waiver covers, document it in writing immediately—don't rely on verbal objections