What is a Claim of Lien? - A Comprehensive Guide

This blog post aims to provide a comprehensive understanding of the Claim of Lien, covering its purpose, the parties involved in filing it, critical deadlines, and key considerations to keep in mind.

What is a Claim of Lien?

A Claim of Lien is a formal document that is publicly recorded to establish a legal encumbrance on a property. By filing this document, contractors can cloud the property's title and potentially use it as a basis for foreclosure or property ownership transfer. The Claim of Lien contains essential information such as the claimant's identity, property owner details, hiring party, initial and final work dates, and more. To make the Claim of Lien legally binding, it must be signed, notarized, and recorded in the county where the project is located.

Who Needs to File a Claim of Lien on a Private Project?

If you have a direct contract with the property owner, it is your responsibility as a contractor to file a Claim of Lien. In this case, you do not need to send a Notice to Owner. However, subcontractors, sub-subcontractors, suppliers, and suppliers to sub-subcontractors must file a Claim of Lien to secure their right to receive payment for the work performed on the project.

Claim of Lien Rules for Public and Private Projects

• On public projects, contractors and suppliers generally rely on bond claims instead of filing a Claim of Lien.
• Claims of Lien recorded on public projects hold no legal weight and have no enforceable effect.
• Clerks who receive Claims of Lien on public projects primarily verify the presence of a signature and notary seal, without thoroughly examining other essential details.
• Although some individuals may still choose to record Claims of Lien on public projects, these documents are considered meaningless and do not carry any legal significance.

What is the Claim of Lien Deadlines in Florida?

Claim of Lien in Florida has specific deadlines that must be followed.

• The claim must be filed within 90 days from the claimant's last work on the project.
• The 90-day countdown starts from the day following the claimant's final workday.
• Weekends and holidays are included in the calculation of the 90-day period.
• If the 90th day falls on a weekend or a holiday when the clerk's office is closed, the deadline is extended to the next business day.
• This extension allows claimants to have up to 93 days to record their Claim of Lien, considering weekends and holidays.

What is “Last Work"?

Understanding what constitutes "last work" is essential to comply with the Claim of Lien deadline. It is important to note that punch list work, warranty work, and passing inspections do not count as "last work" by themselves. While punch list work can coincide with regular work and potentially be considered the last day of work, claimants should ensure they record their Claim of Lien based on the day they genuinely completed their work. Base contract work and approved change order work are indeed considered as last work, meaning they are valid for lien rights.

Conclusion

Additionally, claimants should exercise caution when relying on the expectation of returning to complete work. If circumstances prevent them from returning, such as a job shutdown or demobilization, failing to record the Claim of Lien within the 90-day window will result in the loss of lien rights.

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.

Protect Your Rights with a Notice to Owner

Sending a notice to owner is the first step to secure payment on construction projects. Learn how a notice to owner Florida helps protect your lien rights and ensures you get paid.

FAQs

1. What is the purpose of a Claim of Lien?

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A Claim of Lien protects contractors, subcontractors, and suppliers by creating a legal claim against the property. It ensures you have a statutory right to payment if an owner or contractor fails to pay.

2. Who is allowed to file a Claim of Lien in Florida?

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On private projects, contractors, subcontractors, sub-subcontractors, and suppliers can file a lien if they remain unpaid. Direct contractors with a contract to the property owner can also file, even without sending a Notice to Owner.

3. Can a Claim of Lien be filed on a public project?

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No. Public projects are protected through payment bonds, not liens. Any lien filed on a public project has no legal effect under Florida law.

4. Where do I record a Claim of Lien?

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The Claim of Lien must be recorded in the official records of the county where the property is located. It must be signed, notarized, and meet Florida’s statutory requirements.

5. What is the filing deadline for a Claim of Lien in Florida?

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A Claim of Lien must be filed within 90 days of your last day of furnishing labor or materials. If the 90th day falls on a weekend or legal holiday, the deadline moves to the next business day.

6. What counts as “last work” for lien purposes?

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Base contract work and approved change order work qualify as last work. Warranty work, inspections, and minor punch list items do not typically extend the lien deadline.

7. What information must a valid Claim of Lien include?

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A valid lien must include:

• The claimant’s legal name and address

• The property owner’s name and address

• The hiring party’s details

• Legal property description

• First and last furnishing dates

• Amount claimed as due and unpaid

8. What happens if I miss the 90-day deadline?

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If you fail to file within 90 days, your lien rights are permanently lost. At that point, your only option is to pursue payment through other legal remedies such as breach of contract claims.

9. Does recording a Claim of Lien guarantee payment?

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No. Recording a lien pressures the property owner by clouding the title, but you may still need to file a foreclosure action in court to enforce payment.

10. How long does a Claim of Lien remain valid?

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In Florida, a lien is valid for one year from the recording date. To preserve your rights beyond that, you must file a foreclosure lawsuit or extend the lien through legal action.

11. Will filing a lien damage my client relationship?

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While some contractors worry, filing a lien is a legal right and standard practice in construction. Most property owners understand it’s a professional step to protect payment rights, not a personal conflict.

12. Should I file a Claim of Lien myself or use a professional service?

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You can file it yourself, but errors in property descriptions, notarization, or deadlines can invalidate the lien. Professional services like SunRay help ensure accuracy, compliance with Florida law, and timely filing.