In this blog, we explore the finer details of the Florida Contractor Lien, shedding light on the critical aspect of deadlines that can significantly impact your business.
What is a Florida Contractor Lien?
A Florida contractor lien, or mechanic's lien, is a legal claim against a property to secure payment for work performed or materials supplied in the construction or improvement of that property. Contractors, subcontractors, and suppliers have the right to file a lien if they have not been paid for their services.
Deadline to File a Florida Contractor Lien
The deadline to file a contractor lien in Florida is governed by specific timeframes outlined in the state's construction lien law, which is codified in Chapter 713 of the Florida Statutes. Generally, the deadline for filing a contractor lien is 90 days from the last day the contractor provided labor, services, or materials for the project.
However, it's crucial to note that there are certain milestones and considerations that can impact this deadline.
Key Aspects That Influence the Timeframe for Filing a Florida Contractor Lien
1. Notice of Commencement
Before starting work on a construction project, it's essential to check if a Notice of Commencement has been filed. This document, filed by the property owner or general contractor, provides important information about the project. If a Notice of Commencement is recorded, subcontractors and suppliers may need to serve a Notice to Owner within 45 days of starting work to preserve their lien rights.
2. 90-Day Deadline
Contractors, subcontractors, and suppliers typically have 90 days from the last day of furnishing labor, services, or materials to the project to file a contractor lien. Missing this deadline can result in the loss of lien rights.
3. Recording the Lien
Once the decision to file a lien has been made, it is crucial to ensure that the lien is properly recorded in the county where the property is located. This involves preparing and filing a Claim of Lien with the appropriate county clerk's office within the 90-day timeframe.
To enforce the lien and initiate a foreclosure action, the lienholder must file a lawsuit within one year of recording the Claim of Lien. Failure to initiate legal action within this timeframe can result in the automatic expiration of the lien.
Understanding the deadlines associated with filing a Florida contractor lien is essential for anyone involved in the construction industry. Strict adherence to these timelines is crucial to preserving and enforcing lien rights. Contractors, subcontractors, and suppliers should be diligent in keeping track of the key milestones and deadlines outlined in Florida's construction lien law to protect their interests and ensure fair compensation for the work and materials they provide. Seeking legal guidance and consulting with professionals familiar with Florida's construction lien laws can be invaluable in navigating this complex aspect of the construction process.
Let our system safeguard your lien or bond rights effortlessly. Reach out to our professionals at 800-403-7660 for legal guidance. Stay proactive in managing your lien and bond notices with SunRay – don't let time slip away!