A lien waiver primarily protects the owner from which issue?

Prepare for the Minnesota Contractors Exam with engaging quizzes and informative flashcards. Each question includes hints and explanations. Ace your exam with confidence!

A lien waiver serves as a legal document that relinquishes the right of the contractor or subcontractor to file a lien against a property for unpaid work or materials. The primary purpose of this waiver is to protect the property owner from the risk of paying twice for the same services or materials.

When a contractor completes work on a project, they might require the owner to sign a lien waiver upon payment. By doing this, the contractor confirms they have received payment and are waiving any future claims to lien the property for that specific work. If the contractor does not provide a lien waiver, there’s a risk that they could later file a lien against the property, claiming they were not fully paid, even if the owner has already paid them. This scenario could obligate the owner to pay again to resolve the lien dispute, thus the lien waiver is essential in ensuring that the owner does not face this risk.

This protective aspect of a lien waiver is why the correct answer focuses on avoiding double payment for services or materials already rendered and compensated.

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