One of the most common and costly mistakes construction professionals in Florida make is signing a Final Release of Lien before receiving full payment. Doing so could permanently waive your right to file a Claim of Lien—even if the payment never comes.
At Sunshine Notices, we specialize in helping Florida contractors safeguard their lien rights with properly filed Notice to Owner (NTO) documents. In this article, we explain why holding off on signing a Final Release of Lien until you’ve been paid in full is not just smart—it’s essential.
What Is a Final Release of Lien?
A Final Release of Lien is a legal document that waives your right to file a construction lien for work performed or materials supplied on a job. When you sign it, you’re essentially telling the property owner, general contractor, and lender: “I’ve been paid, and I will not file a lien.”
Sounds simple—but it’s also legally binding, and there are no take-backs.
Real Story: A Subcontractor’s Costly Mistake
Just last week, one of our clients called us in a panic. Their general contractor had asked them to sign a Final Release of Lien to “keep the project moving”—even though they hadn’t received their final payment. Unfortunately, they signed it, trusting that the check was “on the way.”
Now, it’s been over 10 days, and no payment has arrived. Because they signed the release, they’ve given up the right to file a Claim of Lien—and with it, their strongest legal tool to recover what they’re owed.
This isn’t the first time we’ve seen this happen. We’ve helped multiple subcontractors in Florida navigate these tricky situations—too often after the damage has already been done. General contractors may not always act in bad faith, but the system puts the risk squarely on you if you give up your rights too soon.
Why Signing a Final Release Before Payment Is Dangerous
Here’s why signing too early can jeopardize your business:
1. You Lose Leverage
Until you’re paid, your right to lien is your strongest form of leverage. Signing away that right gives the other party no legal obligation to pay you after the fact.
2. It’s Legally Enforceable
In Florida, once a Final Release of Lien is signed, courts will generally honor it—even if you never received the funds. That means no Claim of Lien, no legal recourse, and no payment.
3. Contractors Often Rely on Promises
General contractors or property owners might say, “The check is coming next week” or “We just need the release to close out the loan.” If you trust them and sign early, you’re taking on all the risk.
What You Should Do Instead
If you’re asked to sign a Final Release before you’ve been paid in full:
✅ Ask for a Conditional Final Release of Lien
This version makes the release effective only when payment clears. It’s a fair compromise that protects both parties.
✅ Verify Payment Has Been Received
Always confirm that the funds have hit your account before signing a final release.
✅ Use a Trusted Document Service
Work with a company like Sunshine Notices to prepare and review all lien-related documents. We ensure your rights are protected every step of the way.
Protecting Your Lien Rights Starts with a Notice to Owner
Florida law requires that contractors and suppliers send a Notice to Owner within 45 days of starting work in order to preserve their lien rights. This means having it delevered by the 45th day with stricter proof requirements within the 40-45th day. Missing this deadline(waiting until the 45th day or later) can forfeit your ability to file a Claim of Lien later.
At Sunshine Notices, we:
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File your Notice to Owner on time, every time
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Track lien deadlines so you don’t have to
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Provide tools and templates for Final Releases of Lien Florida—conditional and unconditional
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Support you in enforcing your right to get paid
Don’t Risk Non-Payment—Protect Yourself
If you’re working without a written Notice to Owner, or considering signing a Final Release of Lien before receiving full payment, you’re putting your business at serious risk. Let Sunshine Notices help you stay protected and get paid what you’re owed.
We have free waivers and releases of liens for all our clients. Want to know how to use them? Check them out here. Waiver and Release Video
Still want to know more about your lien rights? Here is another recent article we published. https://sunshinenotices.com/protect-your-lien-rights-notice-to-owner-florida/