.png){kind=small}
In this blog post, we will delve into the process of securing property lien rights in Florida. Whether you're a contractor, subcontractor, or supplier, this guide will provide you with valuable insights on navigating the legal framework and taking the necessary steps to protect your financial interests. From preliminary notices to filing a mechanics lien, we'll cover the essential aspects of securing property lien rights in the Sunshine State.
By the end of this article, you will have a clear understanding of the process, the relevant timelines, and the key considerations involved in securing property lien rights in Florida. Let's dive in and empower ourselves with the knowledge needed to protect our businesses and ensure fair compensation for our construction-related endeavors.
Now let's explore the general process of securing your lien rights. By following these steps, you can protect your interests and ensure a smoother construction project:
Step 1 - Notice to Owner
Firstly, it is important to note that within 45 days of initiating your involvement in the project or delivering your initial materials, you must issue a Notice to Owner. This time-frame commences from the moment you commence work or provide the first set of materials. It is crucial that the Notice reaches the owner and any relevant parties specified in the Notice of Commencement no later than the 45th day. It is not advisable to send the Notice on the 45th day itself, as it is essential for them to receive it within the designated time-frame. Therefore, it is highly recommended to send the Notice as early as possible.
If you have a direct contractual agreement with the owner, technically, you are not obliged to send a Notice to Owner. However, we strongly advise that you still consider sending one, as it can help establish transparency and ensure clear communication throughout the project.
Step 2 - Claim of Lien
Subsequently, it is crucial to record a Claim of Lien within 90 days after completing your final work or delivery of materials on the project. It is important to note that the term "last work" does not encompass punch list or warranty work.
Within 15 days of recording the Claim of Lien, it is necessary to dispatch a certified mail copy to the owner, as well as any other relevant parties specified in the Notice of Commencement, who are required to receive such documentation.
Step 3 - Contractor’s Final Affidavit
The submission of the Contractor's Final Affidavit is necessary to be carried out five days prior to initiating any foreclosure action related to your lien. We strongly advise that if you are required to submit the Contractor's Final Affidavit, you do so concurrently with the recording of your construction lien. The parties obligated to send this affidavit are those who possess a direct contract with the owner.
If you serve as a general contractor and maintain a contractual relationship with the owner, we recommend sending the Contractor's Final Affidavit to the owner within five days preceding the commencement of a foreclosure, while simultaneously recording your Claim of Lien.
Similarly, if you function as a plumber, electrician, or roofer, and you possess a direct contract with the owner, it becomes mandatory for you to submit the Contractor's Final Affidavit as well.
Step 4 - Foreclosure suit
Lastly, it is imperative to initiate the foreclosure process for your construction lien by filing a civil action no later than one year from the date of recording the Claim of Lien. This time limit cannot be extended, and it is crucial to understand that re-recording the Claim of Lien is not a valid option. Commencing a civil action is the only viable means to maintain the validity of your lien.
However, it is important to note that the owner has the authority to shorten this period down to 60 days by sending a notice to the clerk, which you will receive through certified mail. Alternatively, the owner can file a lawsuit against you to reduce the time-frame to just 20 days.
We highly recommend taking proactive steps in preparing your lien when you approach the 60-day mark since it is not advisable to wait until the last moment to record your construction lien. Within 60 to 90 days of recording the Claim of Lien, it is prudent to seriously consider moving forward with the necessary actions unless there are specific factual or business reasons to delay.
It is crucial to understand that each passing day without making efforts to collect the outstanding debt listed in your books makes it increasingly challenging to secure payment. Therefore, it is in your best interest to promptly pursue the collection process.
Conclusion
By understanding and diligently following the above-mentioned process, construction professionals can protect their right to payment and take necessary legal actions to secure their rightful compensation.
