Conditional vs. unconditional Texas lien waiver: which do I send?
The difference comes down to one thing: whether the money has actually cleared. Answer two quick questions below and generate the correct §53.284 form in under a minute.
Start with the generator, or read the two-question test underneath it.
What type of lien waiver do you need?
Texas Property Code §53.284 requires one of these four forms.
Free plan includes 3 waivers per month. We use this to track your usage.
Not sure? Answer two questions:
1. Is this a progress payment or the final payment?
2. Have you already received the money, or are you signing in exchange for it?
Already received = unconditional. Signing to get paid = conditional.
The two-question test
Every Texas lien waiver is a combination of two choices. Answer these two questions and you have your form:
- Have you actually been paid yet? If the money has cleared your account, you send an unconditional waiver. If you are signing in order to get paid and the check has not cleared, you send a conditional waiver.
- Is this a progress payment or the final payment? A payment in the middle of a job is a progress waiver. The last payment that closes out the contract is a final waiver.
Two questions, four possible answers — which is exactly why Texas Property Code §53.284 defines four statutory forms. Get either axis wrong and you can either give up lien rights you did not mean to, or hand over a waiver the other side will reject.
The key difference: conditional protects you, unconditional does not
A conditional waiver only takes legal effect once the payment is actually received in good and sufficient funds. If the check bounces or the payment is reversed, the waiver never became effective and your lien rights stay fully intact. This is the form you sign when you are handed a check but it has not cleared yet.
An unconditional waiver gives up your lien rights the moment you sign it, whether or not you were paid. Because it offers you no protection, you should only ever sign one after the money is safely in your account. Under Texas Property Code §53.283, no one can force you to sign an unconditional waiver before you have been paid.
The four forms at a glance
- Conditional on progress payment — mid-project pay app, check not yet cleared. The most common monthly form for subcontractors.
- Unconditional on progress payment — mid-project pay app, money already received and cleared.
- Conditional on final payment — project closeout, final check handed over but not yet cleared.
- Unconditional on final payment — project closeout, final payment already received. This one waives all remaining lien rights on the project, so only sign it once the money is confirmed.
A real example
An electrical subcontractor finishes a project and submits a final invoice for $30,000. The general contractor hands over a check and asks for an unconditional waiver on final payment so they can close the job. Because the check has not cleared yet, the sub should send a conditional waiver on final payment instead, and only send the unconditional version once the $30,000 has actually landed. Signing the unconditional form first would give up all lien rights on a payment that has not been confirmed.
Common mistakes
- Signing an unconditional waiver before the payment clears. This is the single most expensive mistake in the process, and §53.283 means you never have to.
- Sending a final waiver when only a progress payment is being made — this can waive lien rights for work you have not been paid for yet.
- Using an out-of-state template whose language does not substantially match the Texas §53.284 form, which can make the waiver unenforceable.
Frequently asked questions
Can a general contractor make me sign an unconditional waiver before paying me?
No. Texas Property Code §53.283 only permits requiring a conditional waiver before payment clears. You are within your rights to send a conditional waiver instead and provide the unconditional version once you have been paid.
What if I already received the money?
Then an unconditional waiver is appropriate, since there is no payment left to protect. Choose progress or final depending on whether this is a mid-project payment or the last payment on the contract.
Do either of these need to be notarized?
Only if your original contract was signed before January 1, 2021. LienReady checks your contract date automatically and adds a notary block when one is required.
LienReady is not a law firm and does not provide legal advice. Consult a construction attorney licensed in Texas for questions about your specific situation.