Understanding the Legal Significance of a Lien Release

1. LIEN RELEASE PITFALLS
ArielaWagner
954-491-1861
Ariela@SunrayNotice.com
Alex Barthet
305-347-5295
Alex@Barthet.com

2. AGENDA
• Understanding the Legal Significance of a Lien Release
• Not Negotiating the Form of Release at theTime ofContract
• Having theWrongThrough Date (or noThrough Date)
• Not Using Conditional Release Language
• Not Creating Exceptions to the Release
• Using the Sunray Release System

3. WEBINAR QUESTIONS
• Use the controls to submit your
questions
• We will answer the questions at
the end of the presentation
• Do not include any names in
your questions

4. UNDERSTANDINGTHE LEGAL
SIGNIFICANCE OF A LIEN RELEASE
• What does a lien release do?
• Why is a lien release important?
• Can it release rights other than just
lien rights?
• Example
• Remember, your perspective
should be different when you are
giving vs. getting releases.

5. PITFALL #1: NOT NEGOTIATINGTHE FORM
OF RELEASE ATTHETIME OF CONTRACT
• What form of release is required
by Florida law?
• But my contract says I need to
use a specific form?
• My contract is silent on the issue
but the contractor demands I use
his form.What do I do?
• How can I avoid this in the
future?

6. PITFALL #2: HAVINGTHEWRONGTHROUGH
DATE (OR NOTHROUGH DATE)
• Why is the through date
important?
• Does the through date match
the dollar amount?
• What if there is no through
date?
• Is the through date really the
through date?

7. PITFALL #3: NOT USING CONDITIONAL
RELEASE LANGUAGE
• What is a conditional release?

8. PITFALL #3: NOT USING CONDITIONAL
RELEASE LANGUAGE
“This waiver and release is expressly conditioned upon
the undersigned’s actual receipt of the above
referenced amount in paid funds, otherwise this
waiver and release is void.”

9. PITFALL #3: NOT USING CONDITIONAL
RELEASE LANGUAGE
• What is a conditional release?
• Avoid use of “$10”. Always
state the amount to be
received.
• But I kept the original. Isn’t
that enough?
• Creating a conditional stamp.

10. PITFALL #4: NOT CREATING EXCEPTIONS
TOTHE RELEASE
• How do I preserve other claims
when I sign a release, like
delays or unexecuted change
orders?

11. PITFALL #4: NOT CREATING EXCEPTIONS
TOTHE RELEASE
“Notwithstanding the foregoing, this waiver and
release specifically excludes _________ which is
reserved by the undersigned.”

12. PITFALL #4: NOT CREATING EXCEPTIONS
TOTHE RELEASE
• How do I preserve other claims
when I sign a release, like
delays or unexecuted change
orders?
• Do I have to do it month after
month?
• But they won’t accept
modified releases?

13. USINGTHE SUNRAY RELEASE SYSTEM
• Release options in
the Sunray system

14. USINGTHE SUNRAY RELEASE SYSTEM
• Fields are already
populated once
research is complete
• Fill the fields in red
including the amount
and through date

15. USINGTHE SUNRAY RELEASE SYSTEM
• Select PDF orWord
format
• Releases are stored in
the system

16. WANTTO LEARN MORE?
• Florida Lien Law Seminar – Learn How to Protect
Your Rights and Get Paid
• February 26 from 8AM to 10AM
• Courtyard Miami West, 11580 NW 105 Street

17. QUESTIONS?

18. LIEN RELEASE PITFALLS
ArielaWagner
954-491-1861
Ariela@SunrayNotice.com
Alex Barthet
305-347-5295
Alex@Barthet.com