Florida Construction Lien Basics

Understanding how construction liens work, who can file them, and the steps involved, is essential for anyone working in the construction industry. This guide offers a comprehensive overview of Florida’s lien laws to help ensure your rights are protected and payments are secured.

What Is a Florida Construction Lien?

A construction lien—also known as a mechanic’s lien—is a legal claim filed against a property by contractors, subcontractors, suppliers, or laborers who have not been paid for their work or materials. It serves as a powerful tool to help ensure payment for contributions made to a construction project.

Why It Matters in the Construction Industry

Construction liens offer vital protection for those working in the industry, ensuring fair compensation and discouraging non-payment. Without lien rights, contractors and suppliers face significant financial risk if a property owner or general contractor fails to pay.

Overview of Florida Lien Laws

Florida’s construction lien laws are designed to balance the rights of those improving property with the protections due to property owners. Understanding the legal framework is crucial for ensuring compliance and preserving lien rights.

General Principles of Lien Rights

Florida’s lien laws are established under Chapter 713 of the Florida Statutes, which define:

• Who is eligible to file a lien

• What notices are required

• Critical deadlines

• How liens are enforced

Key Stakeholders

• Prime/ General Contractors – Those with a direct contract with the property owner

• Subcontractors – Hired by the general contractor

• Suppliers – Provide materials for the project

• Laborers – Perform labor on the site

Each party has specific filing requirements to secure lien rights.

The Florida Construction Lien Process

The Florida construction lien process involves specific steps and strict deadlines that must be followed to secure payment rights. From serving preliminary notice to enforcing the lien, each phase plays a critical role in protecting contractors, subcontractors, and suppliers.

Who Can File a Lien?

• Prime/ General Contractors

• Subcontractors

• Material suppliers

• Laborers

How to File a Lien?

Step 1 - Sending the Preliminary Notice Subcontractors and suppliers must serve the Notice to Owner within 40 days of first furnishing labor or materials to all stakeholders as listed in the Notice of Commencement (NOC).

Step 2 - Filing the Lien

In case of nonpayment, a construction lien must be filed within 90 days of the last date of providing labor or materials. The lien must include:

• A sworn statement of account

• A legal property description

• Proof of proper notice  

Step 3 - Enforcing the Lien

A lawsuit to enforce the lien must be filed within 1 year of recording it. If no action is taken, the lien expires.

Deadlines and Key Timeframes

• 40 Days: Serve Notice to Owner (subcontractors/suppliers)

• 90 Days: File the lien after last furnishing labor or materials

• 1 Year: Enforce the lien through a lawsuit

How to Conduct a Florida Lien Search?

Conducting a lien search in Florida is essential for uncovering any existing claims on a property before purchasing or refinancing. It helps identify potential financial liabilities by checking county records and official state databases.

Why Perform a Lien Search?

Before purchasing property, it’s essential to check for existing liens to avoid inheriting financial liabilities.

How to Search for Liens

• Visit the county recorder’s office where the property is located

• Use online databases, such as:

1) Florida Department of State – Sunbiz.org

2) County Clerk of Court’s Official Records Search

Key Takeaway

Understanding Florida’s construction lien laws is critical for contractors, subcontractors, suppliers, and property owners alike. Following strict notice requirements, filing deadlines, and legal procedures helps protect your right to payment and avoid costly legal issues. To safeguard your interests, always send a Notice to Owner in Florida on time and, if necessary, file a mechanics lien in Florida to secure the compensation you've earned.