Post on 14-Aug-2015
LIEN RELEASE PITFALLS
Ariela Wagner954-491-1861
Ariela@SunrayNotice.com
Alex Barthet305-347-5295
Alex@Barthet.com
AGENDA
• Understanding the Legal Significance of a Lien Release• Not Negotiating the Form of Release at the Time of Contract• Having the Wrong Through Date (or no Through Date)• Not Using Conditional Release Language• Not Creating Exceptions to the Release• Using the Sunray Release System
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
UNDERSTANDING THE 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.
PITFALL #1: NOT NEGOTIATING THE FORM OF RELEASE AT THE TIME 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?
PITFALL #2: HAVING THE WRONG THROUGH DATE (OR NO THROUGH 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?
PITFALL #3: NOT USING CONDITIONAL RELEASE LANGUAGE
• What is a conditional release?
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.”
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.
PITFALL #4: NOT CREATING EXCEPTIONS TO THE RELEASE
• How do I preserve other claims when I sign a release, like delays or unexecuted change orders?
PITFALL #4: NOT CREATING EXCEPTIONS TO THE RELEASE
“Notwithstanding the foregoing, this waiver and release specifically excludes _________ which is reserved by the undersigned.”
PITFALL #4: NOT CREATING EXCEPTIONS TO THE 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?
USING THE SUNRAY RELEASE SYSTEM
• Release options in the Sunray system
USING THE SUNRAY RELEASE SYSTEM
• Fields are already populated once research is complete
• Fill the fields in red including the amount and through date
USING THE SUNRAY RELEASE SYSTEM
• Select PDF or Word format
• Releases are stored in the system
WANT TO 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
QUESTIONS?
LIEN RELEASE PITFALLS
Ariela Wagner954-491-1861
Ariela@SunrayNotice.com
Alex Barthet305-347-5295
Alex@Barthet.com