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In this blog, we'll highlight the top 10 things you should never do when signing a lien waiver in Florida. By helping you avoid these common mistakes, our aim is to make sure your construction process is smooth, safe, and clear.
1. Signing Without Payment
Never sign a lien waiver before receiving payment. Conditional waivers should only be signed when you have the funds securely in hand, as signing prematurely could jeopardize your right to collect.
2. Ignoring the Specifics
Florida allows for various types of lien waivers, each with its own conditions. Never ignore the specifics of the waiver you're signing. Whether it's conditional or unconditional, on progress or final payment, understanding the terms is crucial.
3. Failing to Date the Waiver
Always date your lien waiver. This may seem simple, but it ensures clarity regarding the payment timeline. Be meticulous about dating the waiver on the day you receive payment.
4. Overlooking Notary Requirements
In Florida, some lien waivers may require notarization for validity. Never overlook this requirement, as an improperly notarized document might be deemed invalid.
5. Ignoring Project Details
Every lien waiver should specify the project details, including the property address, owner, and contractor information. Failing to include these details could lead to confusion or render the waiver ineffective.
6. Signing a Blank Lien Waiver
Never sign a blank lien waiver. Ensure that all fields are properly filled out, leaving no room for ambiguity or potential misuse of the document.
7. Assuming Unconditional Means Immediate Release
Unconditional waivers don't always mean immediate release of all lien rights. Never assume; read and understand the waiver terms to avoid unintended consequences.
8. Skipping Legal Advice
Before signing any lien waiver, seek legal advice or consult experts at SunRay. Construction laws in Florida can be complex, and having a legal professional review the document ensures you're protected and fully understand the implications.
9. Not Keeping Copies
Always keep copies of the signed lien waivers. This serves as your record and proof of the transaction, protecting you in case of any disputes or discrepancies.
10. Missing Filing Requirements
In certain cases, filing the lien waiver with the county recorder's office is necessary. Never skip this step when required, as it adds an extra layer of protection and documentation.
When should you sign the Lien Waiver?
Whether you're a contractor, subcontractor, or property owner, we have listed the optimal times to sign a lien waiver, guaranteeing a construction process marked by transparency and security.
1. Upon Receipt of Payment
The primary and safest time to sign a lien waiver is upon receipt of payment. This ensures that you've been compensated for your work or materials, and signing the waiver at this point becomes confirmation of the transaction.
2. Post Clearing of Funds
Before signing a lien waiver, it's prudent to wait until the funds are cleared in your account. This additional step adds an extra layer of assurance that the payment is solid and can help prevent potential complications.
3. When Terms Are Met
If the terms outlined in the contract or agreement have been fully met, it's an appropriate time to sign a lien waiver. This may include completing specific project milestones or delivering agreed-upon materials.
4. Before Project Completion
For progress payments or partial payments during a project, signing a conditional lien waiver is common. This type of waiver ensures that you're releasing your lien rights for the portion of work or materials covered by the payment received.
5. As Final Payment is Received
Once the final payment is received and all work is completed, signing an unconditional lien waiver is typical. This signals that you've been fully compensated, and you're releasing all lien rights related to the project.
Key Takeaways
Signing a lien waiver in Florida requires attention to detail and a thorough understanding of the legal landscape. By avoiding these common mistakes, you can ensure that your lien waiver serves its intended purpose, fostering trust and transparency in construction transactions. Always approach lien waivers with caution, seeking professional advice when needed to navigate the complexities of Florida's construction laws successfully.
Not sure about signing that lien waiver yet? Use SunRay to safeguard your payment rights. Contact our experts at 800-403-7660 for legal assistance. Stay ahead with SunRay!
