Why You Need a Release of Lien
Central Homes Roofing provides a release of lien to protect all customers. We want you to be at ease knowing there is no angry roofing supplier waiting to request payment. Not all Florida roofing companies take this step for their clients.
What is a lien?
A lien gives someone a legal claim over your property. It is acted upon when someone doesn’t hold up their end of a debt or obligation. For example, your mortgage lender is generally a lienholder of your property. This means that if you don’t hold up your end of the obligation (your monthly mortgage payments), then your mortgage lender can take over your property and sell it to make their lost money back.
A lien is not automatically placed on the property. However, if not paid in full a lien can be placed on the property.
Lien waiver vs. lien release
A lien release or lien waiver should be requested from your roofing contractor to prevent the manufacturer of your roofing supplies from coming after you for payment. In general, lien waivers and lien releases are two different things, despite their similar names.
What is a lien waiver?
A lien waiver is a document that waives any future lien rights that might exist in a construction project. A lien waiver can act as a sort of receipt because it indicates that payment has been received. In the case of getting roof work done, a lien waiver would indicate that you paid the roofing company. The roofing supplier would not then be able to file a lien for non-payment because of the waiver.
In Florida, if you want to get a lien waiver, specific documentation is required unless all parties are in agreement that a non-standard form can be used.
What is a release of lien?
A release of lien is also known as a lien release, a lien cancellation, or satisfaction of liens. Where a lien waiver waives any future lien rights, a release of lien cancels already existing lien rights. A lien release can remove an existing lien claim on a project. Typically, a release of lien is required after the debt has been satisfied, but requirements may vary by state.
Why do you need a release of lien?
A roofing supplier who hasn’t been paid by the contractor can legally come after the homeowner who had the roof installed for their missing payment. By getting a release of lien from your roofing contractor you can prevent any unexpected demands from unhappy suppliers.
As a homeowner, it is your job to ensure you are protected. Don’t make the mistake of skipping a lien waiver.
What can happen without a release of lien?
A central Florida roofing company suddenly went out of business before paying the roofing supplier. Besides the homeowners who never had the roofs they paid for installed, the supplier was never paid for the roofing material. Because there was no release of lien from the roofing company, the homeowners were faced with paying for their roofs twice.
The homeowners who have found themselves in this unfortunate situation now have liens against their homes. This means they are forced to pay twice for roofs that in some situations haven’t even been installed. Other homeowners are facing foreclosure due to the lien.
How does Central Homes Roofing protect you?
So as a Central Homes Roofing client, how do you know you’re protected from liens on your property? We pay our vendor in full and supply you with the release of lien.. This means you’re not on the hook for paying and you have proof of that fact.
Ensure any roofing contractor you work with provides a release of lien. You can have a new roof installed on your home without worrying about liens – as it should be.