Release of lien
Our company has been requested to release a wavier of lien prior to payment however the company also submitted a letter stating that once they recieve payment they will submit our payment. Is this the smart legal way to continue with the process.
Re: Release of lien
Florida Statute §713.20(2) provides that “A right to claim a lien may not be waived in advance. … Any waiver of a right to claim a lien that is made in advance is unenforceable.” In order to insure yourself that you are not waiving any lien rights in advance of payment you can either (1) insist upon payment at the same time that the release is provided (i.e. done simultaneously) or (2) provide them with a "Conditional Release of Lien" Go to our website at
http://www.theconstructionlawyers.com/ and click on forms and then click on conditional release of lien. This is a release of lien that is given but is conditioned upon the funds actually being delivered to the contractor. If the Contractor is never delivered the funds, or if the check bounces, then the conditional release of lien is invalid, and thus you have not waived any lien rights.
Good luck,
Randall Gilbert
Re: Release of lien
Florida Statute §713.20(2) provides that “A right to claim a lien may not be waived in advance. … Any waiver of a right to claim a lien that is made in advance is unenforceable.” In order to insure yourself that you are not waiving any lien rights in advance of payment you can either (1) insist upon payment at the same time that the release is provided (i.e. done simultaneously) or (2) provide them with a "Conditional Release of Lien" Go to our website at
http://www.theconstructionlawyers.com/ and click on forms and then click on conditional release of lien. This is a release of lien that is given but is conditioned upon the funds actually being delivered to the contractor. If the Contractor is never delivered the funds, or if the check bounces, then the conditional release of lien is invalid, and thus you have not waived any lien rights.
Good luck,
Randall Gilbert
