A subcontractor provides a conditional lien waiver for $25,000 but the check bounces. What is the legal status of the lien waiver?
Correct Answer
B) The waiver is void and lien rights are preserved
A conditional lien waiver is only effective when the condition (payment) is satisfied. If the check bounces, the condition is not met, making the waiver void and preserving the subcontractor's lien rights.
Why This Is the Correct Answer
A conditional lien waiver is only effective when the condition (payment) is satisfied. If the check bounces, the condition is not met, making the waiver void and preserving the subcontractor's lien rights.
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