As the mortgagee (in Texas) of a project in Florida, is an unconditional waiver and release of lien required for subsequent draws referring back to previously advanced funds?
1 reply
Jan 21, 2020
First, it's important to recall that the waiver rules of the location of the project will be the ones that apply to the job. Further, note that there isn't really a time requirement for providing lien waivers in Florida. Rather, the use of waivers is managed between the parties - they're requested and submitted as the parties see fit.
Generally, a lender will expect a lien waiver in exchange for a draw - whether that be a conditional lien waiver prior to the draw, or an unconditional one after payment has been dispursed. But, if the lender doesn't request a waiver, or if the submitter doesn't automatically supply one, there's no law dictating that either party needs to act. Of course, it's still usually in each party's best interest to either collect or submit waivers.
Finally, if waivers have been exchanged for previous draws - there's no need to re-waive those prior draws. Rather, waivers generally only need to reference what's being waived with the instant transaction - and all of the previous draws will be documented by the prior waivers, if properly executed.
I hope this was helpful! For further discussion on Florida lien waivers: (1) Florida Lien Waivers Guide and FAQs; and (2) Florida Lien Waiver Forms & Guide – All You Need to Know.