Lien Law Summary:
Florida Construction Lien Law Summary
Below is a summary of all the basic points of Florida’s Construction Lien Law. Take note that it does not claim to be an all-inclusive discussion of the said law in any way.
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Who is eligible to make a claim for a construction lien in Florida?
A lien is a bond that one party in the contract can claim on a property until his/her performance or material contribution to the contract’s fulfillment has been paid in full. To be more specific, contractors, subcontractors, and other parties who provide the material and labor resources for the completion of a project under construction may claim a lien. For more lien law summary and information about lien claims, one can check Florida statutes 713.02 and 713.06.
If you own a private property and the lien is initially on the property itself, you may make a Payment Bond or a Conditional Payment Bond so that the collateral is the payment you have made and not the property itself. Even after the lien has been recorded, property owners are allowed transfers of liens if they want to protect their property and would like something else to serve as bond for the performance or material service payments which are yet to be made.
Protecting the claimants’ rights
The Florida Construction Lien Law is a rounded law which protects both the property owner and also the laborers and suppliers who are investing their time, energy and resources into the completion of a project. What the claimants need to establish is a clear contract between them and the property owners. There must be enough in the contract to warn the property owners of penalties should they fail to pay for the materials and the labor on time. To perfect the claim, as this lien law summary outlines, especially in matters where the contract is direct or private, it is important for the suppliers of materials and labor to make a clear affidavit of their understanding of the contract, and to fill out forms for the lien claim in a timely manner. These forms and affidavits must also be made public to secure their lien claim.
When is a lien claim void?
Property owners can also protect themselves if the lien has not been made within the specified time stated in the contract or the statute. This can be 60 days to a year after the completion of the project. A lien claim is also void if the claim was made without the signatures of all the parties involved, and if the claim did not come with all the necessary proofs of performance and materials spent on the project (receipts). All claim materials should be duly notarized.
When can a construction lien be waived?
If a contractor is able to prove that he has made a Payment Bond or a Conditional Payment Bond in place of a lien, according to the lien law summary, the lien claim may be waived. However, the Payment Bond or the Conditional Payment Bond must at least cover the original cost of the contract for it to stand up in court. Usually Payment Bonds are preferred by contractors because it helps them have cap costs in the projects they are handling.
For more information on Florida Construction Liens (Mechanic’s Liens), contact our office at: 305 -341-3545.
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