When the contractor requests final payment, a Final Contractor's Affidavit must be submitted to the lender. The Final Contractor's Affidavit lists all money due to potential lienors that have not been paid. The lender will typically require affidavits from each potential lienor assuring that they have been paid before releasing the final draw amount to the contractor.
The Minnesota Contractor's Affidavit to Induce Lender to Release Funds — Final Payment is a legal document used in the construction industry to ensure that contractors receive their final payment from a lender. This affidavit acts as a guarantee to the lender that all work has been completed in accordance with the contract and that there are now pending claims or liens against the property. The purpose of this affidavit is to protect the lender from any potential claims or disputes that may arise after the final payment has been made. By signing this document, the contractor certifies that all work has been completed satisfactorily, all subcontractors and suppliers have been paid, and there are no outstanding warranties or liabilities. For contractors to request the release of funds, there are several types of Minnesota Contractor's Affidavit to Induce Lender to Release Funds — Final Payment that may be used. These include: 1. Standard Contractor's Affidavit: This is the most common form of the affidavit and is used when no specific issues or concerns are present. It covers the general requirements for final payment release. 2. Affidavit with Lien Release: This variation includes an additional section for the contractor to provide proof that all liens have been released or will be released upon receipt of payment. 3. Affidavit with Outstanding Issues: In situations where there are minor unresolved issues or punch list items, this affidavit includes a section where the contractor can list these items and explain how they will be resolved. 4. Affidavit for Partial Release of Funds: If the contractor has completed a portion of the project and wishes to receive payment for that part, this affidavit is used to request a partial release of funds. 5. Affidavit for Indemnity: In complex projects or situations where there is heightened risk, an indemnity clause may be included to protect the lender from any liability resulting from the contractor's actions. It is important for both contractors and lenders to familiarize themselves with the specific requirements and regulations of Minnesota regarding the Contractor's Affidavit to Induce Lender to Release Funds — Final Payment. Consulting with legal professionals or industry experts is advisable to ensure compliance with all applicable laws and to protect the interests of all parties involved.
