Construction Liens – Timing is Key
By: J. Matthew Kelly, Esq.
Clark, Campbell, Lancaster & Munson, P.A.
Under Florida law, certain individuals and entities who provide labor, work, or materials for the improvement of real property may have a lien on the real property for the value of the labor or materials supplied. These liens are known as construction liens and are governed by Sections 713.001-713.37 of the Florida Statutes. These potential lienors may use construction liens to secure payment in the event they are not paid for their services. Even in cases where a contractor is paid in full, a supplier or subcontractor who has not been paid may still have lien rights against the property.
The process is different depending whether a potential lienor directly contracted with the property owner or whether the potential lienor is a subcontractor or supplier who contracted with the general contractor. In the latter case, the process for securing a lien includes the following:
The first step requires potential lienors to provide a “Notice to Owner”. A Notice to Owner is generally required to be served within 45 days of the potential lienor commencing to furnish his or her labor, services, or materials. The Notice to Owner statutory form can be found in Section 713.06(2)(c) of the Florida Statues. The Notice to Owner notifies the owner of the real property that the potential lienor has provided materials or services, describes the materials or services, and informs the owner that the potential lienor is entitled to a construction lien on the real property. Depending on the circumstances these notices must be served upon the owner, general contractor, designated person, and/or the lender for the project.
Following the Notice to Owner, 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, or no later than 90 days after the termination of the contract between the general contractor and the owner. The Claim of Lien should be recorded in the clerk’s office for the county in which the property is located. The statutory template for a Claim of Lien can be found in Section 713.08(3) and must meet certain requirements as enumerated within the statute. The Claim of Lien must be served on the owner prior to recording or within 15 days after the recording of the Claim of Lien.
Constructions liens are generally valid for a period of one year after the claim of lien has been recorded. Any lienor who intends on enforcing his or her construction lien must file a lawsuit to foreclose the lien within the one-year period. An owner may shorten the one-year period from one year to 60 days by recording a “Notice of Contest of Lien.” The owner must also service the Notice of Contest of Lien on the lienor. If a lienor is served with this notice and fails to initiate a suit on the lien within 60 days, its lien will be extinguished.
Florida’s construction lien law framework can be very complicated and nuanced. It contains many pitfalls related to who is qualified to lien, notices and documents required to be served and recorded, and many strict deadlines. If the specific timeline and structure is not followed it can result in the loss of lien rights. To avoid these pitfalls and ensure your rights are protected, I recommend working with an attorney when dealing with Florida’s construction lien process.
J. Matthew Kelly is an attorney with the law firm Clark, Campbell, Lancaster & Munson, P.A. in Lakeland. Questions can be submitted to email@example.com.