What Are the Basic Notice to Owner and Mechanic’s Lien Rules?

In this blog, we'll explore the fundamental rules governing NTO and Mechanic's Lien procedures in Florida and uncover some lesser-known exceptions that can safeguard your rights even when deadlines seem to be missed.

What are the essential rules governing Notice to Owner and Mechanic's Lien procedures?

1. Sending a Notice to Owner

• Sending a proper statutory Notice to Owner (NTO) is essential for construction projects in Florida. Use the appropriate statutory form, not a generic notice.
• The NTO must reach the property owner within 45 days from the project's start or material delivery, though it's better to aim for 40 days due to postal processing time.
• SunRay Construction Solutions offers attorney-approved statutory forms to ensure compliance and timely submission of NTOs.
• Sending the NTO early, well before the 40th day, is recommended to maximize protection and secure lien rights. Even if the project work starts months later, serving the NTO as soon as you have a contract in place is prudent.

2. Understanding the Claim of Lien and Notice of Nonpayment Deadlines

Another vital rule concerns the Claim of Lien and Notice of Nonpayment deadlines. The Claim of Lien must be received no later than 90 days from your last work or delivery of materials to the job site. Both the 45-day and 90-day periods are counted from the day after material delivery, including weekends and holidays. If the 45th or 90th day falls on a weekend or legal holiday, the deadline shifts to the next business day.

Remember that you don't have to wait until the 90th day to file a lien. You can do so while still working on the project, preferably within 60 days of recording the lien or sending the bond claim.

3. Filing Lawsuit to Enforce Lien vs. Filing a Lawsuit on a Bond

The final set of rules pertains to filing a lawsuit to enforce a lien or a bond claim. For the Claim of Lien, you must file a lawsuit within one year of the recording date of the lien. For lawsuits on a bond claim, the deadline is one year from your last work on the job.

However, waiting for a year is not recommended. If you haven't received payment within 60 days of recording your lien or bond claim, consider seeking legal assistance to enforce your claim promptly.

What are the NTO Exceptions you may not be aware of?

• No NTO Required When Contracted Directly with Owner: Though not mandatory, sending an NTO, even when you have a direct contract with the property owner, is highly recommended, especially for residential jobs. This notice can prompt the owner to prioritize payment.
• No NTO/NTC Required When Contracted Directly with Bonded Contractor on Public Projects: If you have a direct contract with the bonded contractor on a public project, you don't need to send a Notice to Contractor (NTC) equivalent. However, it's still good practice to send one.
• No Notice of Nonpayment Required When Contracted Directly with Bonded Contractor on Public Projects: On public projects as a subcontractor to a bonded contractor, you are not required to send the Notice of Nonpayment. Yet, sending it can serve as added protection.

Key Takeaway

Understanding the Notice to Owner and Mechanic's Lien rules is essential for anyone involved in construction projects in Florida. While these rules provide a framework for securing lien rights, knowing the exceptions can be equally important. Always be proactive and seek legal advice promptly if payment issues arise to protect your interests and ensure timely compensation for your work and materials. Remember, knowledge of the law can sometimes grant you rights you may not even know you have!

Below are some questions that construction professionals may be interested in:

1. What is a lien letter?

A Lien Letter is a straightforward letter that communicates your intention to place a lien on a property if you don't receive payment for your work. If you haven't been paid for your services and want to inform your customer officially, sending a demand letter is the way to go.

2. What is a notice of intent to file a lien in Florida?

The Intent to Lien Form Florida is a legal document that serves as a pre-warning to potential lien holders about an upcoming lien. This form must be filed before starting work on the project and acts as a notice to anyone who might consider making a claim on the property in question.

3. What does the NTO do?

A Notice to Owner (also known as an NTO) is one of the most powerful collection tools in the construction industry. Its function is to secure your lien and bond claim rights in the event that whoever hired you is unable or unwilling to pay you.

4. What is the purpose of Notice to Owner in Florida?

In Florida, a Notice to Owner (NTO) holds significant importance as a crucial collection tool. If you are involved in a construction project and lack a contract directly with the property owner, sending an NTO becomes essential to protect your lien or bond claim rights.

5. What is a Notice to Owner (NTO) in Florida?

A Notice to Owner (NTO) is a statutory document that subcontractors, suppliers, and other parties without a direct contract with the property owner must send to preserve their right to file a construction lien. It informs the owner that you are providing labor, services, or materials to the project, ensuring your payment rights are protected under Chapter 713, Florida Statutes.

6. When must a Notice to Owner be sent in Florida?

The NTO must be received by the property owner and other required parties within 45 calendar days of your first furnishing of labor, materials, or services. To avoid postal delays, experts recommend sending it no later than 40 days from project start. If it is served late, your lien rights are lost.

7. Who is required to send a Notice to Owner?

You must send an NTO if you do not have a direct contract with the property owner. This typically includes:

• Subcontractors

• Material suppliers

• Equipment rental companies

• Sub-subcontractors

General contractors who contract directly with the property owner are not required to send an NTO, but they must still comply with lien rules.

8. What is the deadline to file a Claim of Lien in Florida?

A Claim of Lien must be recorded within 90 calendar days of your last day of furnishing labor, materials, or services to the project. This deadline includes weekends and holidays. If the 90th day falls on a weekend or legal holiday, the deadline moves to the next business day.

9. How long do I have to file a lawsuit to enforce a Florida lien?

You must file a lawsuit to enforce your lien within one year from the date the lien is recorded. This timeframe can be shortened if the property owner files a Notice of Contest of Lien which reduces the deadline to 60 days or a Summons to Show Cause which reduces the deadline to 20 days. Acting promptly is crucial to protect your claim.

10. What is a Notice of Nonpayment on a bond claim?

A Notice of Nonpayment is the document used instead of a lien when working on bonded projects, especially public jobs. It must be served within 90 days of last furnishing labor or materials. Failing to serve this notice means you cannot pursue a bond claim for payment.

11. Are there exceptions to sending a Notice to Owner in Florida?

Yes. Some common exceptions include:

• Having a direct contract with the property owner. You technically do not need to send an NTO, although it is still considered best practice.

• Working on public projects with a bonded prime contractor. If you have a direct contract with the bonded contractor, no NTO or Notice to Contractor is required.

• Acting as a direct subcontractor to a bonded contractor on a public job. You may not need to send a Notice of Nonpayment, although sending one can still provide added protection.

12. What is the difference between a Notice to Owner and a Claim of Lien?

The Notice to Owner is a preliminary notice that preserves your future lien rights. The Claim of Lien is the actual, recorded legal claim against the property when payment has not been received. Without an Notice to Owner Florida, you may lose your right to record a lien unless you contracted directly with the owner.

‍13. What happens if I miss the NTO or lien deadlines?

If you miss the 45-day NTO deadline or the 90-day lien deadline, you lose your lien rights entirely. Florida courts strictly enforce these timeframes, and no extensions are granted. In this case, you may still pursue other remedies such as breach of contract claims, but lien rights will be forfeited. ‍

14. Why should I use a professional service like SunRay to send NTOs?

Florida lien law requires strict compliance. Errors such as incorrect legal descriptions, missing parties, or late delivery can make your lien unenforceable. Services like SunRay Construction Solutions handle every step for you including researching property records, ensuring timely delivery, and tracking notices so you can focus on your work and still protect your right to payment.

Sunray Construction Solutions offers professional "Notice to Owner Florida" services to help you secure your lien rights in the construction industry. Looking for a free Notice to Owner form in Florida? Get your free, editable "Florida Notice to Owner Template" today for easy and accurate preparation.

At Sunray Construction Solutions, we also understand the importance of protecting your rights on a construction project. Learn how to use the Florida mechanics lien form and how to file a mechanics lien in Florida to ensure you're paid for your hard work.