Hi, customer is holding our check because they need a final release, but we haven't filed an NTO.
2 replies
Jun 22, 2020
The Florida Notice to Owner is required to be sent by any party that didn't contract directly with the owner. Failure to do so is fatal to a claimant's mechanics lien rights. GCs and other types of direct contractors do not need to send an NTO in order to file a lien claim. If you contracted directly with the property owner, this makes complete sense.
However, if you didn't contract with the owner (i.e. you are a sub or equipment lessor/material supplier who contracted with the GC or a sub) then this is a bit odd. If you fall under this category of project participants, then a final lien waiver and release won't have much (if any) effect. One thing to be aware of is any language in the waiver that affects other rights (such as any contract claims). Florida does regulate lien waivers, but parties may also use their own forms. If this is not the statutory form be sure to review the waiver for any red flags.
As long as you are being paid in full, there really isn't any reason to not sign a lien waiver. Most property owners are advised to seek them from anyone who did work on their property, whether they filed an NTO or not, so the request is not unusual. If you have concerns that you are not being paid in full, then you should consult with an attorney before signing the release. Feel free to reach out if you have any other questions.