As a general contractor, you know how vital lien waivers are for the construction industry. With four different types of lien waivers and 50 U.S. states, it can be difficult to know what regulations your lien waiver needs to meet — especially if you want to stay compliant.
At the same time, the traditional lien waiver notarization process can be time-consuming, especially as you have to waste your energy tracking down an in-person notary agent. We explore how, by using the right lien waiver management software, you can effortlessly maintain compliance and access remote online notaries that speed up the notarization process. We also unpack which U.S. states require notarization.
Lien Waivers: What is automated lien notarization?
Lien Waiver Notarization is a process completed by a notary that assures the signatures on the waiver are authentic. Lien waivers are notarized to ensure signature authenticity in case of a legal dispute.
Remote, online notarization enables you to automatically notarize documents without ever needing to leave your desk. GCPay has partnered with Notarize.com, the industry leader in remote online notarization, allowing users to quickly, legally, and securely notarize lien waivers.
Any of the four types of lien waivers can be notarized remotely. However, most states do not require notarization, with some even viewing it as an invalidation of the waiver.
What States require notarization?
Currently, there are only two U.S. states that still require the notarization of lien waivers. These include:
- Mississippi — All lien waivers must be sworn and signed before a public notary.
- Wyoming — Lien waivers need to be notarized to be considered valid.
Previously, Texas required notarization, however, any projects started after January 1st, 2022 no longer need to be notarized. Additionally, in Georgia, lien waivers require a witness and a corporate seal. If this is not possible, they should be notarized.
What states don’t require notarization?
While there are only two states that require lien waivers to be notarized, there are five states that view notarization as a possible form of invalidating the waiver. This means that notarization should be avoided as much as possible in the below states:
- Arizona
- California
- Connecticut
- Michigan
- Nevada
If your state has not been listed that means they don’t require notarization. A contracting firm can require notarization, but this is not enforced by the legal system.
The Benefits of a Remote Online Notary
Lien waiver management software, like GCPay, can virtually connect you with notaries across the country. When using our software, subcontractors are alerted of submission requirements before sending their waivers. We also allow you to get as granular with your submission requirements, ensuring all submitted waivers meet your needs. Other benefits of using automation software for remote online notarization include:
- Through the use of an online notary, you can ensure all of your documents are compliant in all 50 states.
- The ability to notarize your pay applications and lien waivers without leaving your desk.
- Fast notarization, often in a matter of seconds. On the GCPay app, for instance, all you need to do is start the notarization session by clicking on the notarize link. The pre-populated document will be sent to the notary who will certify it in less than 5 minutes.
- The notary can confirm your identity with your government-issued ID and a few simple questions.
- You’ll connect with a licensed notary over live video to sign your document. The notary will then witness your signature and assist you throughout the process.
- After you pay the Notarize fee, the notarized document will be automatically sent back to GCPay, fulfilling the waiver requirement and notifying the approver.
- Fees are paid directly to Notarize and enable you to have reduced waiting periods, and direct integration with your system.
How Can You Automate the Notarization Process of Lien Waivers?
Through the use of lien waiver management software, general contractors can control what requirements subcontractors need to meet, and this can include notarization. With the ease of a remote online notary, you’ll save time usually spent printing documents, tracking down a notary, and waiting for their assistance. This will speed up the approval process, enabling you to get paid faster and on time.
GCPay is one of the few lien waiver management software systems that provide you with the comfort of never having to leave your desk to fulfill your paperwork needs. To discover GCPay’s other unique offerings, book a demo with one of our consultants today.
