An owner should request waivers of lien rights for work on residential property after paying the full contract amount:

An owner should request waivers of lien rights for work on residential property after paying the full contract amount:

• A. so the prime contractor is paid first
• B. to allow subcontractors to file liens
• C. to increase the bid price
• D. so the prime contractor, subcontractors, and other claimants will not file liens

Answer: (D)

Waivers of lien are used to remove the risk of mechanics liens once payment is complete. When the owner pays the full contract amount, obtaining unconditional final waivers from the prime contractor, all subcontractors, and material suppliers ensures there are no outstanding claims against the property. This protects the owner's title and prevents anyone who contributed to the work from filing a lien in the future. It’s specifically about releasing lien rights after full payment, not about payment order or increasing the bid price, and it prevents liens rather than allowing them.

Waivers of lien are used to remove the risk of mechanics liens once payment is complete. When the owner pays the full contract amount, obtaining unconditional final waivers from the prime contractor, all subcontractors, and material suppliers ensures there are no outstanding claims against the property. This protects the owner's title and prevents anyone who contributed to the work from filing a lien in the future. It’s specifically about releasing lien rights after full payment, not about payment order or increasing the bid price, and it prevents liens rather than allowing them.