Proposed SB 658 would modify 713.20, Florida Statutes, which governs the form and content of construction lien releases, to make the use of the statutory forms mandatory. If enacted, the new law would take effect July 1, 2025.
The proposed statute modifies 713.20(4) and (5), Florida Statutes, in the same way to cement the form a construction lien release must use as follows:
(4) When a lienor is required to execute a waiver or release of lien in exchange for, or to induce payment of, a progress payment, the waiver or release must may be in substantially the following form:
. . .
(5) When a lienor is required to execute a waiver or release of lien in exchange for, or to induce payment of, the final payment, the waiver and release must may be in substantially the following form:
The prior statutory forms under 713.20(5) and (5), Florida Statutes, are unchanged.
The proposed statute also modifies 713.20(7), Florida Statutes, to allow releases to be contingent on the receipt of payment, rather than merely on the clearance of a check as follows:
(7) A lienor who executes a lien waiver and release in exchange for payment a check may condition the waiver and release on receipt of funds payment of the check. However, in the absence of a payment bond protecting the owner, the owner may withhold from any payment to the contractor the amount of any such unpaid funds check until any such condition is satisfied.
Finally, the proposed statute deletes 713.20(8), Florida Statutes, to apparently remove the ability to use an alternative lien release form, as follows:
(8) A lien waiver or lien release that is not substantially similar to the forms in subsections (4) and (5) is enforceable in accordance with the terms of the lien waiver or lien release.