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What is conditional waiver and release of lien upon progress payment?

A Unconditional Waiver upon Final Payment is a legal document that applies to construction projects in the state of Florida, under Florida laws. The signing of this lien waiver by a lienor serves as a confirmation that payment has been rendered and received; the lienor therefore releases their entire remaining lien against the property.

With a Florida Conditional Waiver upon Final Payment, the entire lien is released only at such time when the actual payment has been received. The execution of a Florida Conditional Waiver upon Final Payment means that the signor has waived their right to file a mechanics lien for payment in any amount and extinguishes all preexisting claimant rights.

It is important to note that a lienor may not waive their right to claim a lien in advance, and that any such waiver would be invalid. In addition, a lien right can only be waived to the extent of the materials, labor, and/or services provided.

Florida Statutes do not make a distinction between a conditional waiver (effective upon payment) and an unconditional one (effective upon signing and releases lien rights whether or not payment was actually received). By default, the Florida Waiver Upon Final Payment is an unconditional waiver. However, parties are permitted to modify the language in the waiver to stipulate that the document is conditional, and will not take effect unless and until the payment in question has been made.

Published: Sep 25, 2022

Updated: Aug 18, 2022

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