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Answering the 5 Most Common Questions Related to Florida Construction Lien Laws

Home / Resources / Answering the 5 Most Common Questions Related to Florida Construction Lien Laws

June 26 2023 | by: Zinzow Law

Answering the 5 Most Common Questions Related to Florida Construction Lien Laws

BY JUSTIN ZINZOW

There used to be a time, in the not so distant past, when a general contractor, subcontractor, or supplier could rely on a handshake and the phrase “you have my word” when agreeing to provide labor, supplies, or materials for a construction project and actually get paid for holding up their end of the bargain.  Sadly, those times are gone.  There are too many occasions now where people are not getting paid for work performed and feeling like their hands are tied when trying to get paid.  That is where the Florida construction lien laws step in.  Every person working in the construction industry in Florida should be familiar with Chapter 713 of the Florida Statutes.  This Chapter is critical in preserving a person’s lien rights and getting paid for work performed.  However, with so many intricate nuances in the lien laws, it is important that a person understand some specific basics.  Below are 5 popular questions (and answers to those questions), related to construction lien laws, that people ask the most.

I have never had to do this before.  What is a Notice to Owner?

Let us begin with a Notice to Owner is not.  A Notice to Owner (“Notice”) is not a lien or an encumbrance on real property.  The Notice is simply that, a Notice to the property owner letting them know that you are working on the project and expect to be paid.  A Notice contains the Noticer’s name and address (Florida Statute Chapter 713 refers to the Noticer’s name as “Lienor’s name), a description sufficient for identification of the real property, and the nature of the services or materials furnished or to be furnished.

 

  • I just finished work on a project and did not get paid. Do I need to send a Notice to Owner?

 

The answer to this depends on if you are under direct contract with the property owner (“privity”) or if you are under the direct contract of another person who is not the property owner.  Persons who are in privity with an owner and who perform labor or services or furnish materials constituting an improvement, are not required to serve a Notice on the property owner to preserve their lien rights.  However, persons who are NOT in privity with an owner and who perform labor or services or furnish materials constituting a part of an improvement under the direct contract of another person, MUST serve a Notice on the property owner in order to preserve their lien rights.  Per Florida Statute § 713.06, laborers are exempt from this rule and do NOT need to serve a Notice.  Whether you are in privity or not, best practice is to always send a Notice to Owner. 

 

  • It has been “x” days since I started the project, can I still serve a Notice to Owner?

 

The Notice must be served either before commencing to furnish labor, services, or materials on the project, or not later than 45 days after final furnishing of furnish labor, services, or materials on the project.  In addition, a Notice must also be served on any persons designated in the owner’s Notice of Commencement (NOC) to receive notices.

If a person not in privity fails to serve a Notice on the property owner or does not timely serve it, the person’s right to a lien will be lost.

Can I file a Claim of Lien without serving a Notice to Owner? 

 

If a person is a.) in privity with the property owner, b.) commences to furnish labor, services, or material to an improvement on the real property, and c.) is owed money for said labor, services, or materials furnished, a Claim of Lien can be recorded.  A person not in privity with the property owner must a.) timely serve a Notice on the owner (and everyone else listed in the NOC to receive Notice) and b.) have not been paid for performed labor, services, or materials furnished, before a Claim of Lien can be recorded.

 

  • It has been “x” days since I finished the project, can I still file a Claim of Lien?

 

Florida Statute 713.08 states that a “Claim of Lien may be recorded at any time during the progress of the work or thereafter but not later than 90 days after the final furnishing of the labor or services or materials by the lienor.”  What is “final furnishing”?  This is a term that often causes confusion in the construction industry.  Per Chapter 713, final furnishing is “the last date that the lienor furnishes labor, services, or materials.”  For example, if a plumber was hired to install pipes in 3 bathrooms, his or her final furnishing date on the project would be the day he or she installed the last pipe.  Final furnishing is is not the date that a person took care of punch list items or received issuance of a certificate of occupancy or certificate of final inspection.

The questions and answers above just scrape the surface of Chapter 713.  To make sure your Notice is completed correctly and timely served, it may be wise to use a Notice to Owner service who can do the research for you and save you the time and headache of doing it on your own.  Likewise, it may also be wise to enlist the help of an attorney to correctly and timely record a claim of lien on your behalf.  It is imperative that the claim of lien be done right.  A claim of lien recorded incorrectly or untimely may have a negative impact on your ability to get paid and will jeopardize your lien rights. 

Source: Florida Statutes Chapter 713

DISCLAIMER:
The forgoing is intended for general education purposes only, and is not intended as legal or other advice or given for the purpose of seeking legal employment.
It is recommended that you consult with a bord-certified construction attorney about your particular situation.