What the heck is a “release of liens” and more importantly, do you guys issue them to your customers? If so, do any of you have a sample I can use?
Contractor’s Release and Waiver of Liens
Contractor’s Release and Waiver of Liens - FindLegalForms.com
When a general contractor completes a project and receives full payment for that project, it is important that the contractor give its customer a release and waiver of liens, stating explicitly that the customer has paid in full, and that no liens against the customer’s property are still in effect. This release allows the customer to prove to future creditors, lenders, etc., that his/her property is free and clear of encumbrances that may have arisen out of this particular contracting project.
This is what I found doing a quick search. Sounds valid to me.
When I did construction each sub had to give the general a lien waiver so the customer knew all the subs had been paid.
Kurt I just went throught a lean release with a bank. Which means if they don’t pay you can’t hold a lean on the property. To get paid. I will say after 8 weeks I did my money. But not without a fight. Many many calls. Releases them from any liability of payment.
Same here, all on the up and up.
These are basically found when dealing with a general contractor and/or subs. It basically states that you have been paid in full for your services rendered, and you are no longer able to file a lien against the property/owner/bank.
Dormatex, You word that very good buddy.
It looks like this guy is wanting a release of liens before he pays me. This is what he said in the email.
“All bills have to get board approval before we can issue a check and we have a board meeting on the 7th. Leave us an invoice when the windows are cleaned along with a release of liens and we will send your check that week.”
Do any of you actually do this, or have done this in the past specifically for commercial window cleaning? If so, do you have a form I could use? I know I can find a sample on the internet but one catered to window cleaning would be nice.
[QUOTE=Kurt;85170]It looks like this guy is wanting a release of liens before he pays me. This is what he said in the email.
“All bills have to get board approval before we can issue a check and we have a board meeting on the 7th. Leave us an invoice when the windows are cleaned along with a release of liens and we will send your check that week.”
Do any of you actually do this, or have done this in the past specifically for commercial window cleaning? If so, do you have a form I could use? I know I can find a sample on the internet but one catered to window cleaning would be nice.
Just a simple lean release. http://monarchref.com/docs/lienreleaseforms.pdf
Thanks Paul, it looks like this one will work below.
CONDITIONAL WAIVER AND RELEASE UPON FINAL PAYMENT
Civil Code Section 3262(d)(3)
Upon receipt by the undersigned of a check from________________________________________
in the sum of $____________________ payable to _____________________________________
and when the check has been properly endorsed and has been paid by the bank upon which it is
drawn, this document shall become effective to release any mechanic’s lien, stop notice, or bond right
the undersigned has on the job of ____________________________________________________
located at_______________________________________________________________________ .
This release covers the final payment to the undersigned for all labor, services, equipment, or material
furnished on the job, except for disputed claims for additional work in the amount of $ ___________ .
Before any recipient of this document relies on it, the party should verify evidence of payment to the
undersigned.
Dated: ________________________ ______________________________________________
By ____________________________________________
MAKER OF CHECK
AMOUNT OF CHECK PAYEE OR PAYEES OF CHECK
OWNER
COMPANY NAME
TITLE
JOB DESCRIPTION
7
Kurt -
Just a heads up here. Usually a sub gives the genreal contractor a lien release once paid in full. Works out good if you meet face to face, but if you have any doubts about the company you are working for…you could send them an invoice and a lien release, and techinically they would never have to pay you because you just released them from responsibility. By signing a lien release, you forfeit any possibility of getting paid from the contractor/bank/company. So get paid first, then sign a lien release.
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Dormatex explained it perfectly.
Hi,
for obvious reasons try to include as much information about the job as possible into the waiver.
Job description, location and time frame are not redundant information in a document in which you forfeit any further payments.
Especially in a situation where you work as a sub on multiple sites for the same contractor.
And as always, if you are using a conditional waiver have it checked by your lawyer [I]before[/I] using it.
like dormatex just said check first then lien release … otherwise you might as well send a receipt saying …paid cash in full, imo you might not get paid
My Generals have always provided their own, and its like a ransom trade, “You slide the check to me and I’ll slide the waiver to you;)”
OK guys. I have dealt with lien releases for 23 years. I want to make this clear for you…
You give a General Contractor or bank a CONDITIONAL lien release PRIOR to receiving payment. This tells the person writing the check that you will release the property of all liens on the CONDITION that you get paid the amount indicated on the release.
You give a General Contractor or bank an UNCONDITIONAL lien release upon receiving payment indicating that you have been paid in full and UNCONDITIONALLY release the property of all incumbency.
Some releases (although very rare) will have a section on the back of the form for your employees to sign stating that they have been paid for that job. These releases are very rarely used as employees do not have lien rights.
