Application of Florida’s Construction Lien Transfer Bond Statute:
Practical Solutions to the Problems Resulting from the Real Life Application of Florida’s Construction Lien Transfer Bond Statute
There is a lot of concern and dismay about the complexity, and sometime vagueness, of Floridas construction lien laws. The way the laws are designed tend to confuse those it was designed to protect. If you have taken on a project that requires the hiring of contractors, you should have a sound grasp of the way the state’s lien laws work. It is not a good idea to wait until you are already deep into the project before taking action to protect yourself and to understand the facts related to the statutes.
The lien laws do not just protect contractors, they also allow relief for property owners. To get such relief, you, as an owner, must have all contractors involved with the work sign a Notice of Commencement prior to the start of the project. This will ensure protection against future claims by any one of the contractors and sub-contractors, so that from the very beginning you limit your liability.
Floridas Construction Lien Transfer Bond Statute
Florida’s transfer bond statute is another law that is important to understand in depth. It permits an owner whose property is obstructed by a claim of lien to transfer that lien to another form of security. The reality of this statute is that it is cumbersome and difficult to implement. A number of practical solutions have been worked out to make the process a little easier. Anyone who has serious legal difficulties because of this statute may find such solutions worth pursuing in court.
The best solution would be for the statute to provide clear and concrete consequences for non-compliance. Ordering increases in the amount of the bond is one way this could be accomplished. The financial ability of the owner should not play a part in this process. The person held responsible for paying the bond should not be able to clear the lien by claiming financial inability. All actions that amount to the owner using the statute as a means of avoiding payment should be rejected by the court. And in no case should the court have an unlimited discretion to reduce a bond increase request. At the very least, the court’s judgment should come with a thorough explanation of why it has made such a ruling.
A clearer, more consistent way of dealing with the transfer bond statute is needed. If you are pursuing your case in court, you should not shy away from making such demands as part of your overall case.
Floridas Construction Lien
Your attorneys will of course have to do most of the work. However, you should not be without knowledge and understanding of how the statute works. Depending on the size and complexity of the job, you may be owed a great deal of money. You should not have to forgo all of that just because the law is unclear. You should push your legal team to pursue your rights as far as they can. To do that, you need a solid grasp of the way that the law works yourself, so that you can proceed with intelligence and authority.
For more information on Florida Construction Liens (Mechanic’s Liens), contact our office at: 305 -341-3545.
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