Get Chicago Title Waiver Format Form in PDF Open Editor

Get Chicago Title Waiver Format Form in PDF

The Chicago Title Waiver Format form is a legal document used in the state of Illinois to formally waive any lien rights associated with a construction project. This form is typically employed by contractors or subcontractors to confirm that they have been paid for their work and materials, thereby preventing any claims against the property owner. Understanding how this form works is essential for anyone involved in construction or real estate transactions in Illinois.

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What to Know About This Form

  1. 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 or suppliers to waive their right to file a mechanics' lien against a property. This is important because it assures property owners and lenders that they will not face claims for unpaid work or materials provided. By signing this waiver, the contractor acknowledges receipt of payment and agrees not to pursue any lien rights related to the work performed or materials supplied.

  2. Who needs to sign the waiver?

    The waiver must be signed by the contractor or supplier who provided labor, materials, or services for the property in question. It is crucial that the individual signing the document is authorized to do so on behalf of their company. This ensures that the waiver is legally binding and recognized by all parties involved in the transaction.

  3. What information is required to complete the form?

    To properly fill out the Chicago Title Waiver Format form, the following information is typically needed:

    • The name of the company providing the waiver.
    • The name of the property owner.
    • The address of the property.
    • The total contract amount, including any extras.
    • The amount already paid prior to the waiver.
    • The balance due, if any.
    • The names and addresses of all parties involved in providing labor or materials.

    Completing these sections accurately is essential for the validity of the waiver.

  4. What are "extras" in the context of this waiver?

    In the context of the Chicago Title Waiver Format form, "extras" refer to any additional work or materials that were not included in the original contract but were necessary for completing the project. This can include change orders that were either orally or written agreed upon. It is important to account for these extras in the waiver to ensure that all parties are clear about what has been provided and compensated.

  5. What happens if the waiver is not signed?

    If the waiver is not signed, the contractor retains the right to file a mechanics' lien against the property. This could lead to legal complications for the property owner, who may face claims for unpaid work or materials. Additionally, lenders may be hesitant to disburse funds without a waiver in place, as it protects their investment. Therefore, it is generally in the best interest of all parties to complete and sign the waiver promptly.

Misconceptions

Understanding the Chicago Title Waiver Format form is crucial for anyone involved in real estate transactions in Illinois. However, several misconceptions can lead to confusion. Here are ten common misconceptions about this form:

  1. It eliminates all liens automatically. Many believe that signing this waiver automatically removes all potential liens. In reality, it only waives the right to claim a lien for the specific work and materials outlined in the document.
  2. It applies to all types of contracts. Some assume that this waiver is applicable to any contract. However, it is specifically designed for mechanics' liens related to construction and improvements on real property.
  3. Only contractors can use this form. There is a misconception that only contractors are eligible to sign this waiver. In fact, subcontractors and suppliers can also use it to waive their lien rights.
  4. It is only necessary at the end of a project. Many think this waiver is only needed after project completion. In truth, it can be beneficial to use it at various stages of a project to protect all parties involved.
  5. It protects the owner from all claims. Some believe that by having this waiver, property owners are completely shielded from any claims. While it does provide protection against specific lien claims, it does not cover all potential legal issues.
  6. All waivers are the same. There is a misconception that all waiver forms are identical. Each waiver may have different terms and conditions based on the specifics of the project and the parties involved.
  7. Signing it means you have been paid in full. Many individuals think that signing the waiver signifies that they have received full payment. However, it merely acknowledges receipt of a specified amount and does not guarantee total payment.
  8. It does not need to be notarized. Some assume that notarization is optional. In Illinois, notarization is often required to ensure the validity of the waiver.
  9. It is a one-time document. There is a belief that this waiver is only needed once. However, multiple waivers may be necessary throughout the course of a project, especially if additional work or changes occur.
  10. It is only for residential properties. Some people think this waiver is limited to residential construction. In reality, it can be used for both residential and commercial properties.

Clarifying these misconceptions can help ensure that all parties involved in a real estate transaction understand their rights and obligations. Proper use of the Chicago Title Waiver Format form can protect against future disputes and claims.

Form Breakdown

Fact Name Details
Purpose The Chicago Title Waiver Format form is used to waive any lien rights related to labor and materials provided for a construction project.
Governing Law This form is governed by the statutes of the State of Illinois, specifically relating to mechanics' liens.
Consideration The undersigned acknowledges receipt of a specified amount of money as consideration for waiving their lien rights.
Extras Definition Extras refer to additional work or materials, including change orders, whether oral or written, that may affect the contract price.
Affidavit Requirement The form includes a contractor's affidavit, confirming the truthfulness of the waivers and detailing all parties involved in the project.
Notary Public The document must be notarized to ensure its validity and authenticity, providing an extra layer of protection for all parties involved.

Common mistakes

  1. Incorrect Company Name: Failing to accurately enter the full legal name of the company can lead to issues with the validity of the waiver.

  2. Missing or Incorrect Dates: Not providing the correct date or leaving it blank can invalidate the waiver. Ensure that all dates are clearly written.

  3. Omitting the Property Description: A detailed description of the premises is essential. Without it, the waiver may not be enforceable.

  4. Failure to Specify Consideration: Not stating the amount of money or other valuable consideration received can create ambiguity in the agreement.

  5. Inaccurate Contractor Information: Providing incorrect information about the contractor, including name and position, can undermine the waiver's credibility.

  6. Neglecting to List All Parties: Failing to include all parties who have provided labor or materials can lead to disputes later on.

  7. Not Signing the Document: A waiver without a signature is not legally binding. Ensure all necessary signatures are obtained.

  8. Ignoring Notary Requirements: Not having the document notarized when required can render the waiver ineffective. Always check if notarization is needed.

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