Disagreements over document requirements are common in construction and real estate transactions, particularly when it comes to lien waivers. In many cases, one party insists on procedures that sound official but are not actually required by law.

A frequent point of confusion involves digital signatures and notarization. Despite long-standing legal acceptance of electronic signatures across all 50 U.S. states, some banks, title companies, and contractors still demand handwritten signatures and notarization for lien waivers.

In reality, only two states — Wyoming and Mississippi — require lien waivers to be notarized. Additionally, only a minority of states have lien waiver statutes governing specific formats. In most jurisdictions, notarization is optional, not mandatory.

Electronic signatures have been legally valid in U.S. courts for well over a decade. There is no legal basis for rejecting a properly executed digital lien waiver solely because it lacks a handwritten signature or notary seal.

Another critical issue is the continued use of unconditional lien waivers. Signing an unconditional waiver before payment is received exposes contractors and subcontractors to unnecessary risk and should never be done under pressure.

If you are asked to sign an unconditional lien waiver without payment in hand, the correct response is simple: do not sign. No party can legally compel someone to waive lien rights before being paid.

As for notarization and handwritten signatures, the practical approach may differ. While notarization is often unnecessary, there is usually little harm in complying if it expedites payment and does not compromise your legal position.

Understanding lien waiver laws allows you to protect your rights while navigating outdated or overly cautious demands. Knowing when to stand firm — and when compliance is harmless — can save time, frustration, and liability.