I.  FLORIDA CONSTRUCTION LIEN OVERVIEW

     Florida Construction Lien Law is designed to protect the owner, contractor, sub-contractor, materialmen, and laborer.    In order to be protected, you must follow the law, which has various deadlines and certain notices to be given and/or recorded.

     The process starts when the owner of real estate agrees with a licensed contractor to do work on the owner's property.  The Construction Lien Law refers to this as being in privity.  The owner must sign a Notice of Commencement, in order to comply with the law and be protected by the lien law.  The Notice of Commencement shows the owner's name and address, the type of improvement the contractor is going to make to the real estate i.e. house, pool, air conditioning, roof, room addition, as well as the contractor's name and address and the legal description of the real estate.  There is an additional space on the Notice of Commencement to place another name for notices to be given, which is usually used by the bank that is lending the money for the improvement and/or the attorney for the owner.  The Notice of Commencement must be signed by the owner(s) of the real estate and acknowledged by a Notary Public so it may be recorded.

     A Notice of Commencement is filed with the Clerk of the Court in the Public Records of the County where the real estate is situated.  The Building Department requires a recorded Notice of Commencement before issuing a building permit.

     All liens revert back to the Notice of Commencement and the date that it is filed in the Public Records for the purpose of giving all lienors the same priority, notwithstanding when the work was done.  A Notice of Commencement must be signed by the Owner and recorded in order to protect the Owner under the Construction Lien Law.  Notice of Commencements are recorded after mortgages so the lender will have priority over any liens that may be filed. 

No work should be started on a residential project until the Notice of Commencement is recorded.  The exceptions to starting work before the Notice of Commencement is recorded are subdivision improvement and site improvements for commercial property. 

The contractor is usually paid at certain stages of construction.  These are called Progress Payments.  Lenders require, and Owners should request if no lender is involved, a Progress Payment Affidavit from the contractor.  The contractor signs a statement under oath (affidavit), that all subcontractors, materialmen and laborers have been paid through the date of payment.  When the final payment is made to the contractor, the contractor signs a Contractor's Final Affidavit stating that all subcontractors, materialmen and laborers have been paid.  The owner can rely on this affidavit as a defense in the event a lien is filed against the property.  In the event the owner does not pay the contractor, the contractor may file a lien against the owner's property for the value of work done and not paid for by the owner.

The subcontractor is protected under the Construction Lien Law if the subcontractor follows the law.  One of the requirements in order to be protected is to provide a Notice to Owner within forty-five (45) days of the subcontractor commencing work on the job.  A Notice to Owner advises the owner to make sure the subcontractor is paid at such time as the owner pays the contractor.  When the owner receives a Notice to Owner, the owner should require the contractor to provide a Partial Lien Waiver for work done, or a Release of Lien if the subcontractor has completed the work.  The owner may pay any unpaid subcontractor directly from the contractor's draw, if the subcontractor has not been paid. NOTE: A Notice to Owner is not an indication the contractor is not paying its bills.  A Notice to Owner is a requirement under the Construction Lien Law to protect subcontractors from nonpayment by contractors.  In the event a subcontractor is not paid and has complied with the Construction Lien Law, the subcontractor may file a Claim of Lien against the owner's property.

The materialmen is protected in the same manner as the subcontractor and must give a Notice to Owner in order to protect his right to be paid.

A laborer who is working for the contractor may file a lien for unpaid wages without filing a Notice to Owner.

A Claim of Lien must be filed in the Official Record Books of the County where the property is situated within ninety (90) days from the date the last work was done by the lienor.  The lien must be foreclosed in the same manner as a mortgage, within one (1) year of it being file, or it expires and is unenforceable.  Before a contractor can file a foreclosure action, the contractor must provide the owner with a Contractor's Affidavit setting forth any unpaid subcontractors, materialmen and laborers.

NOTICE

This overview is to familiarize the reader with general information about the Florida Construction Lien Statute.  It is not intended to be legal advice to be relied upon.  You should consult an attorney who is knowledgeable in Construction Lien Law before entering into a contract to have improvements constructed.

II.  FORMS

     •    Notice of Commencement

     •   Notice to Owner

     •    Progress Payment Affidavit

     •    Contractor's Final Affidavit

     •    Release of Lien

     •    Claim of Lien

III. OWNER'S GUIDE TO THE CONSTRUCTION LIEN LAW

IV.  CONTRACTOR'S GUIDE TO THE CONSTRUCTIN LIEN LAW

V.   SUB-CONTRACTOR'S GUIDE TO CONSSTRUCTION LIEN LAW

VI.  ABOUT US

     Florida Legal Domains, Inc. owns, operates, sells and leases domains that relate to the law.  The content of the website is to provide information about Construction Lien Law and to provide an informed service with instructions on how to comply with Florida Lien Law.  This information is not a substitute for legal advice.  Corporations and other legal entities must be represented by an attorney in any construction foreclosure lien action.  Individuals may represent themselves, however the Construction Lien Statute is complex and technical as to time periods.  Even though an individual may not be able to afford an attorney, they cannot afford not to have an attorney.  A Construction Lien can be foreclosed just like a mortgage and an owner may lose their property, including their homestead.  HIRE A COMPETENT ATTORNEY TO REPRESENT YOU BEFORE YOU HIRE THE CONTRACTOR.

VII. HOW TO LOCATE AN ATTORNEY.

     In order to find an attorney who handles construction lien matters, click on the County below where the property is located.