20 Gen | Posted by admin | no comments |
If you`re a contractor in Florida, you`re likely familiar with the concept of a contractor lien release form. This document is an essential part of the contracting process, ensuring that you receive payment for your work and protecting you from any legal action taken against your company.
But what exactly is a contractor lien release form, and how does it work in Florida? Let`s take a closer look.
What is a Contractor Lien Release Form?
A contractor lien release form is a document that contractors use to release their claim on a property in exchange for payment. Typically, a contractor will file a lien against a property if they have not been paid for their work. This lien can prevent the property from being sold or refinanced until the contractor`s payment is settled.
When a contractor receives payment, they can then use a lien release form to release their claim on the property. This allows the property owner to proceed with any necessary transactions, and the contractor receives their payment.
In Florida, contractor lien release forms are regulated by state law. Specifically, Florida Statute 713.20 outlines the requirements for these forms.
What Are the Requirements for a Contractor Lien Release Form in Florida?
To be valid in Florida, a contractor lien release form must meet certain requirements. These include:
1. The form must be in writing.
2. The form must be signed by the contractor or their authorized representative.
3. The form must identify the property where the work was performed.
4. The form must identify the date the work was completed or terminated.
5. The form must state the amount of money being released.
6. The form must state that the contractor has been paid in full for the work performed.
7. The form must be notarized.
It`s important to note that in Florida, there are two types of lien release forms: a partial release and a final release. A partial release is used when the contractor has received payment for a portion of the work completed, while a final release is used when the contractor has received full payment.
Why is a Contractor Lien Release Form Important?
A contractor lien release form is important for several reasons. First and foremost, it ensures that the contractor receives payment for their work. By releasing their claim on the property, the contractor can receive their payment and move on to their next project.
Additionally, a lien release form can protect the contractor from legal action. If a contractor files a lien against a property and later fails to release it, the property owner could take legal action against the contractor. By using a lien release form, the contractor protects themselves from this risk.
Overall, a contractor lien release form is a critical component of the contracting process in Florida. By following state law and using the proper form, contractors can ensure that they receive payment for their work and protect themselves from any legal action.
