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The Chicago Title Waiver Format form serves a crucial role in the construction and real estate industries, ensuring clarity and protection for all parties involved. This document provides a structured way for contractors and subcontractors to waive their lien rights, which helps prevent future disputes regarding payments and claims against a property. It outlines essential details such as the parties involved, the contract amount, and the specific work performed. Additionally, it includes a contractor’s affidavit to verify that all payments and waivers are accurate and legitimate. By detailing the amounts paid and remaining balances, the form promotes transparency and accountability. The inclusion of extras, such as change orders, emphasizes that all aspects of the work are covered, leaving no room for ambiguity. Overall, the Chicago Title Waiver Format form is designed to protect the interests of both property owners and contractors, fostering a smoother transaction process.

Preview - Chicago Title Waiver Format Form

COMPANY NAME

WAIVER OF LIEN TO DATE

 

S STATE OF ILLINOIS

Gty #

COUNTY OF

Escrow #

TO WHOM IT MAY CONCERN:

 

WHEREAS the undersigned has been employed by

 

to furnish

 

for the premises known as

 

of which

is the owner.

THE undersigned, for and in consideration of

($) Dollars, and other good and valuable considerations, the receipt whereof is hereby acknowledged, do(es) hereby waive and release any and all lien or claim of, or right to, lien, under the statutes of the State of Illinois, relating to mechanics’ liens, with respect to and on said above-described premises, and the improvements thereon, and on the material, fixtures, apparatus or machinery furnished, and on the moneys, funds or other considerations due or to become due from the owner, on account of all labor, services, material, fixtures, apparatus or machinery, furnished to this date by the undersigned for the above-described premises,

INCLUDING EXTRAS.* DATE

ADDRESS

SIGNATURE AND TITLE _______________________________________________________________________________

*EXTRAS INCLUDE BUT ARE NOT LIMITED TO CHANGE ORDERS, BOTH ORAL AND WRITTEN, TO THE CONTRACT

CONTRACTOR’S AFFIDAVIT

STATE OF ILLINOIS

COUNTY OF

 

TO WHOM IT MAY CONCERN:

 

THE UNDERSIGNED, (NAME)

BEING DULY SWORN, DEPOSES

AND SAYS THAT HE OR SHE IS (POSITION)

OF

(COMPANY NAME)

WHO IS THE

CONTRACTOR FURNISHING

WORK ON THE BUILDING

LOCATED AT

 

OWNED BY

 

That the total amount of the contract including extras* is $

on which he or she has received payment of

$prior to this payment. That all waivers are true, correct and genuine and delivered unconditionally and that there is no claim either legal or equitable to defeat the validity of said waivers. That the following are the names and addresses of all parties who have furnished material or labor, or both, for said work and all parties having contracts or sub contracts for specific portions of said work or for material entering into the construction thereof and the amount due or to become due to each, and that the items mentioned include all labor and material required to complete said work according to plans and specifications:

NAMES AND ADDRESSES

WHAT FOR

CONTRACT PRICE INCLDG EXTRAS*

AMOUNT

PAID

THIS

PAYMENT

BALANCE

DUE

TOTAL LABOR AND MATERIAL INCLUDING EXTRAS* TO COMPLETE.

That there are no other contracts for said work outstanding, and that there is nothing due or to become due to any person for material, labor or other work of any kind done or to be done upon or in connection with said work other than above stated.

DATE_______________________________

SIGNATURE:_______________________________________________

SUBSCRIBED AND SWORN TO BEFORE ME THIS______________________DAY OF__________________,__________

*EXTRAS INCLUDE BUT ARE NOT LIMITED TO CHANGE

 

_____________________________________________

ORDERS, BOTH ORAL AND WRITTEN, TO THE CONTRACT.

NOTARY PUBLIC

f.1722 R5/96

Provided by Chicago Title Insurance Company
▼ PDF

Document Specifics

Fact Name Details
Purpose The Chicago Title Waiver Format form is designed to waive any lien claims against a property, ensuring that contractors and subcontractors relinquish their rights to file mechanics' liens for work performed.
Governing Law This form operates under the statutes of the State of Illinois, specifically relating to mechanics' liens.
Consideration The waiver is executed in exchange for a specified amount of money or other valuable considerations, which must be acknowledged in the form.
Extras Definition Extras include change orders, both oral and written, that may arise during the course of the contract and are integral to the waiver.
Contractor’s Affidavit The form requires a contractor’s affidavit, affirming that all waivers are genuine and that no other claims exist against the property for the work performed.
Notary Requirement The signature of the contractor must be notarized, adding an additional layer of authenticity and legal validity to the document.

Chicago Title Waiver Format: Usage Instruction

Filling out the Chicago Title Waiver Format form is a straightforward process. It requires specific information related to the project and the parties involved. After completing the form, it should be submitted as part of the documentation for the project, ensuring that all necessary parties are aware of the waiver and any associated claims.

  1. Company Name: Write the name of your company at the top of the form.
  2. Waiver of Lien To Date: Enter the date of the waiver.
  3. State and County: Fill in the state (Illinois) and the county where the property is located.
  4. Escrow Number: Provide the escrow number associated with the transaction.
  5. To Whom It May Concern: Leave this section as it is; it is a standard phrase.
  6. Undersigned Information: Fill in the name of the undersigned party who has been employed to furnish labor or materials.
  7. Property Description: Write the address of the premises for which the waiver is being issued.
  8. Owner's Name: Include the name of the property owner.
  9. Consideration Amount: Enter the dollar amount being received for the work done.
  10. Date: Write the date of signing the waiver.
  11. Address: Provide the address of the undersigned party.
  12. Signature and Title: Sign the form and include your title.

Next, complete the Contractor’s Affidavit section. This part requires additional details about the contractor and the project.

  1. Contractor's Name: Write the name of the contractor in the designated space.
  2. Position: Indicate the position held by the undersigned within the company.
  3. Company Name: Fill in the name of the company that is the contractor.
  4. Building Location: Provide the address of the building where the work is being performed.
  5. Owner's Name: Enter the name of the property owner again for clarity.
  6. Total Contract Amount: State the total amount of the contract, including any extras.
  7. Payment Received: Specify the amount that has been paid prior to this payment.
  8. Names and Addresses: List the names and addresses of all parties that have provided labor or materials for the project.
  9. Contract Price: Indicate the contract price, including any extras.
  10. Amount Paid: Fill in the amount that has been paid for this payment.
  11. Balance Due: State the balance due to complete the project.
  12. Date: Write the date of signing the affidavit.
  13. Signature: Sign the affidavit to confirm the information is accurate.
  14. Notary Public: Have the affidavit notarized on the specified date.

Learn More on Chicago Title Waiver Format

What is the purpose of the Chicago Title Waiver Format form?

The Chicago Title Waiver Format form serves as a legal document that allows contractors and subcontractors to waive their right to file a mechanics' lien against a property. By completing this form, the undersigned acknowledges receipt of payment for work completed and releases any claims to liens on the property. This is crucial for ensuring that property owners can proceed with their projects without the threat of liens being filed against their property for unpaid work.

Who needs to complete this form?

This form is typically completed by contractors or subcontractors who have provided labor or materials for a construction project. It is essential for anyone who has a financial interest in the project and wants to confirm that they have been paid for their contributions. The form helps to clarify the financial relationships between parties involved in the construction and ensures that all claims are settled before the project is completed.

What information is required on the form?

The Chicago Title Waiver Format form requires several key pieces of information:

  1. Company Name: The name of the company or individual waiving the lien.
  2. Property Description: The address of the property where work was performed.
  3. Payment Details: The total contract amount, amount received prior to the waiver, and any balance due.
  4. List of Parties: Names and addresses of all parties involved in the project who have provided labor or materials.
  5. Signature and Title: The signature of the person completing the form, along with their title and date of signing.

Completing this information accurately is crucial to ensure the validity of the waiver.

What are "extras" in the context of this form?

"Extras" refer to additional work or materials that were not originally included in the contract but were necessary for the completion of the project. This can include change orders, which may be communicated either orally or in writing. The form specifies that extras are to be included in the total contract amount. It is important for all parties to be aware of these extras, as they can affect the total payment and the waiver of lien rights.

Common mistakes

Filling out the Chicago Title Waiver Format form can be straightforward, but several common mistakes can lead to complications. One frequent error is failing to include the correct company name. This detail is crucial, as it identifies the party waiving the lien. If the name does not match official records, it may invalidate the waiver.

Another mistake involves omitting the property address. The waiver must clearly specify the premises to which it applies. Without this information, it may be unclear which property is being referenced, leading to potential disputes or misunderstandings.

Many individuals also forget to accurately state the amount of consideration received. This figure should reflect the total payment for the work completed. Inaccuracies can raise questions about the legitimacy of the waiver and may affect future claims.

In addition, signers often neglect to include their signature and title. This omission can render the document incomplete. The signature serves as a confirmation of the information provided, while the title clarifies the authority of the person signing on behalf of the company.

Another common issue is the failure to list all parties involved in the project. The form requires the names and addresses of all individuals or entities that have provided labor or materials. Missing this information can lead to legal challenges, as it may appear that other claims are being ignored.

People sometimes overlook the importance of detailing extras in the contract. The waiver should specify any change orders or additional work that has been agreed upon. If these extras are not included, it can create confusion about the scope of work and payment obligations.

Finally, individuals may not fully understand the implications of the waiver, leading to errors in the contractor’s affidavit. This section requires a sworn statement regarding payments and contracts. Inaccuracies here can undermine the entire waiver process, leading to potential legal consequences.

Documents used along the form

The Chicago Title Waiver Format form is an essential document used in real estate transactions, particularly in the context of mechanics' liens. However, several other forms and documents often accompany it to ensure that all legal and financial aspects are addressed properly. Below is a list of these documents, each serving a specific purpose in the transaction process.

  • Contractor's Affidavit: This affidavit is a sworn statement from the contractor affirming that they have received payment for work done and that all waivers related to the project are genuine. It includes details about the total contract amount and any outstanding payments, ensuring transparency in financial dealings.
  • Notice of Intent to Lien: This document serves as a formal warning to property owners that a contractor or supplier intends to file a lien against the property if payment is not received. It is often required by law in certain jurisdictions and helps to protect the rights of those providing labor or materials.
  • Final Waiver of Lien: This document is typically executed at the completion of a project. It confirms that the contractor or supplier has received full payment and waives any future claims against the property. This waiver is crucial for the property owner to ensure that no further liens can be placed on the property.
  • Change Order: A change order is a written agreement that modifies the original contract. It outlines any changes to the scope of work, costs, or timelines. This document is essential for maintaining clarity and agreement between parties when alterations occur during a project.
  • Release of Lien: This document is used to formally release a lien that has been placed on a property. It is important for clearing the title of the property and is typically issued once payment has been made in full for the work completed.
  • Subcontractor's Waiver of Lien: Similar to the contractor's waiver, this document is executed by subcontractors. It confirms that they have been paid for their work and waives their right to place a lien on the property. This is crucial for the main contractor and property owner to avoid future disputes.

These documents work together to create a comprehensive framework that protects all parties involved in a real estate transaction. By ensuring that each form is properly executed, you can help prevent misunderstandings and potential legal issues down the line.

Similar forms

The Chicago Title Waiver Format form is similar to a Construction Lien Waiver. Both documents serve to release a contractor's right to file a lien against a property for unpaid work or materials. The Construction Lien Waiver is typically used when a contractor or subcontractor has received payment and wants to confirm that they relinquish any future claims to the property. This ensures that the property owner is protected from potential liens that could arise after payment has been made.

Another document that resembles the Chicago Title Waiver Format is the Partial Lien Waiver. This waiver is used when a contractor has received a partial payment for work completed. Like the Chicago Title Waiver, it confirms that the contractor waives their right to file a lien for the amount paid. However, it also specifies that the contractor retains the right to file a lien for any remaining balance owed. This distinction is crucial for both parties to understand their financial obligations and rights.

The Final Lien Waiver is also similar in nature. This document is used when a contractor has received the final payment for a project. It serves as a confirmation that the contractor has been fully compensated for their work and waives any future lien rights related to that specific project. Both the Final Lien Waiver and the Chicago Title Waiver Format ensure that property owners are clear of any claims once payment has been made.

A Contractor’s Affidavit bears similarities as well. This affidavit is a sworn statement by the contractor confirming that all subcontractors and suppliers have been paid. It often accompanies a waiver and provides additional assurance to the property owner that there are no outstanding claims. Like the Chicago Title Waiver, it seeks to protect the property owner from potential liens resulting from unpaid work or materials.

The Subcontractor Waiver is another related document. This waiver is executed by subcontractors to release their lien rights after receiving payment from the general contractor. It is similar to the Chicago Title Waiver in that it aims to assure the property owner that all parties involved in the project have been compensated, thus minimizing the risk of liens against the property.

Lastly, the Material Supplier Waiver is comparable to the Chicago Title Waiver Format. This document is used by suppliers to confirm that they have received payment for materials provided to a project. Like the Chicago Title Waiver, it serves to protect the property owner from any future claims related to unpaid materials, ensuring that all financial obligations have been settled.

Dos and Don'ts

When filling out the Chicago Title Waiver Format form, it's essential to follow certain guidelines to ensure accuracy and compliance. Here are four key do's and don'ts:

  • Do provide accurate company and owner information. Make sure all names and addresses are correct.
  • Do clearly state the total contract amount, including any extras. This ensures transparency in financial dealings.
  • Don't leave any sections blank. Each part of the form must be completed to avoid delays or complications.
  • Don't overlook the signature requirement. Ensure that the appropriate person signs the form to validate it.

Misconceptions

  • Misconception 1: The form is only for contractors.

    Many people believe that the Chicago Title Waiver Format form is exclusively for contractors. In reality, it can be utilized by various parties involved in a construction project, including subcontractors and suppliers. Anyone providing labor or materials may need to use this form to protect their rights and interests.

  • Misconception 2: The waiver eliminates all claims to payment.

    Some individuals think that signing the waiver means they give up any right to payment. However, this is not the case. The waiver pertains specifically to mechanics' liens and does not negate the obligation of the owner to pay for services rendered or materials supplied.

  • Misconception 3: The waiver is a one-size-fits-all document.

    It is a common belief that the Chicago Title Waiver Format form can be used without any modifications. In truth, it should be tailored to fit the specific circumstances of each project. Details such as the contract amount, parties involved, and descriptions of work must be accurately filled out to ensure its validity.

  • Misconception 4: Signing the waiver is optional.

    Some may think that signing the waiver is merely a formality and can be skipped. However, in many cases, it is a necessary step to ensure that all parties are protected and that there are no future claims against the property. Not signing the waiver can lead to disputes and complications down the line.

  • Misconception 5: The waiver covers all types of liens.

    Lastly, there is a misunderstanding that the waiver protects against all types of liens. The Chicago Title Waiver Format specifically addresses mechanics' liens. Other types of liens, such as tax liens or judgment liens, may require different forms or procedures for release.

Key takeaways

When filling out the Chicago Title Waiver Format form, it is essential to approach the task with care and attention to detail. Here are some key takeaways to keep in mind:

  • Understand the Purpose: This form serves to waive any lien rights you may have, ensuring that you cannot claim a lien against the property for work done.
  • Identify the Parties: Clearly state the names and addresses of all parties involved, including the contractor and the property owner.
  • Provide Accurate Details: Fill in the correct details about the project, including the address of the premises and the total contract amount.
  • Include Payment Information: Specify the amount you have been paid prior to submitting the waiver, as well as the total amount due.
  • List All Contributors: Include the names and addresses of all subcontractors or suppliers who have provided labor or materials for the project.
  • Sign and Date: Ensure that you sign and date the form to validate it. An unsigned waiver may not hold up in legal situations.
  • Notarization Required: The form must be notarized, which adds an extra layer of verification to the document.
  • Be Aware of Extras: Understand that “extras” include any change orders, both oral and written, that may affect the contract amount.
  • Review Before Submission: Double-check all information for accuracy before submitting the waiver to avoid any potential disputes later on.
  • Consult Legal Advice if Needed: If you have questions or concerns about the waiver, seeking legal advice can help ensure you are protected.

By keeping these takeaways in mind, you can navigate the process of filling out the Chicago Title Waiver Format form with confidence and clarity.