Manteca, CA asked in Construction Law for California

Q: When are you supposed to sign a stop notice release ? Before or after you get paid ?

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1 Lawyer Answer
Donald M Barker
Donald M Barker
  • Construction Law Lawyer
  • Costa Mesa, CA
  • Licensed in California

A: After or simultaneously when the payment on the Stop Notice is "Honored," i.e., check clears your bank account or you have cash in hand. NEVER release before payment. If obligor on Stop Notice "all of a sudden" finds a problem with your work or services after you sign the Release but before payment, they can refuse payment, though you already signed the Release. It's like selling a car: Do not sign the Pink Slip until cash in hand.

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