What You Need to Know About Florida’s Notice of Commencement

This guide will explain the basics of the Notice of Commencement, why it matters, and what information it needs to contain.

What Is a Notice of Commencement?

A Notice of Commencement is an official document filed with the county where your project is located. It tells everyone involved in the project—like contractors and suppliers—that the construction has started. This notice also protects their rights to file a lien if they aren’t paid for their work.

In Florida, if your construction project costs more than $5,000, you must file a Notice of Commencement before work begins. It has to be signed, notarized, and filed with the county. Skipping this step can lead to legal issues, such as paying for the same work twice.

Why Is the Notice of Commencement Important?

The NOC is important because it protects everyone involved. For property owners, it ensures they aren’t hit with unexpected liens from unpaid subcontractors or suppliers. For contractors and suppliers, it provides a clear start date for the project and protects their rights to get paid.

Without an NOC, property owners could face liens even if they’ve already paid the contractor. Also, any payments made before filing the notice might not be recognized under Florida law, meaning owners could end up paying twice.

Where to File a Notice of Commencement?

The Notice of Commencement must be filed with the county clerk's office in the county where the property is located. You can typically file the NOC in person, by mail, or electronically, depending on the specific county's procedures.

Make sure to file in the correct county, or your NOC could be invalid.

What Should the Notice of Commencement Include?

To comply with Florida law, the NOC(Notice of Commencement) must include specific information:

1. Property description – The legal description and address of the property.

2. Project description – A brief description of the work being done.

3. Owner’s details – The name and address of the property owner or the lessee if they're paying for the work.

4. Contractor’s information – The name, address, and phone number of the general contractor.

5. Surety information (if applicable) – Details about the payment bond and surety company, if there is one.

6. Lender’s information (if applicable) – The name and contact info of the project’s lender.

7. Owner’s representative – Contact information for the owner’s authorized representative, if there is one.

8. Expiration date – The date when the NOC expires (usually one year from when it’s filed).

When Should You File a Notice of Commencement?

You must file the NOC before any work starts. It can be filed up to 90 days before the project begins. If the project doesn’t start within those 90 days, you’ll need to file a new NOC.

Also, any payments made by the owner before filing the NOC may not be considered "proper" under Florida law, potentially leading to double payments if liens are filed.

Notarization Requirements

The NOC must be signed and notarized by the property owner or their authorized agent. If it’s not notarized, the NOC won’t be valid, leaving the property owner at risk of legal problems.

What Happens If You Don’t File a Notice of Commencement?

Not filing an NOC can lead to serious consequences, such as:

• Liens – Subcontractors or suppliers who aren’t paid can place liens on the property, even if the owner has already paid the contractor.

• Double payments – Owners might have to pay twice for the same work: once to the contractor and again to subcontractors or suppliers with liens.

• Disputes – Without an NOC, it’s harder to track when the project started, which can lead to disputes about payments and deadlines.

Best Practices for Filing a Notice of Commencement

Here are some tips to avoid problems:

1. File before starting – Always file the NOC with the right county before work begins.

2. Check for accuracy – Make sure all information in the NOC is correct.

3. Post it at the job site – Put a copy of the NOC at the construction site where everyone can see it.

4. Share copies – Give copies of the filed NOC to all involved parties.

5. Update as needed – If anything changes, like the contractor, file a new or updated NOC.

How to Terminate a Notice of Commencement in Florida?

To terminate a Notice of Commencement in Florida, you will need to file a Notice of Termination with the county clerk's office. This document confirms that the project is complete and all parties have been paid.

FAQs About Notice of Commencement in Florida

What are the common mistakes to avoid when filling out a Notice of Commencement in Florida?

• Incorrect Information: Ensure all details, such as the property owner's name, contractor’s name, and legal description of the property, are accurate.

• Failure to Include Required Information: This includes missing the property address, a proper legal description, or failure to list all relevant parties.

• Not Notarizing: The Notice must be signed and notarized. Failing to do so will render it invalid.

• Not Including the Correct Amount of the Contract: The contract value must be accurately stated to avoid any complications with payment.

• Omitting the Start Date: The effective start date for the project needs to be included for the notice to be legally recognized.

Can a Notice of Commencement be amended?  

Yes, a NOC can be amended if there are changes to the original filing, such as changes to the contractor, property owner, or legal description. Any amendments must be filed with the county clerk and should be properly notarized. The amendment must reference the original NOC to keep the record clear and updated.

Is a Notice of Commencement the same as a lien?  

No, a Notice of Commencement is not the same as a lien. A NOC is a preventive document that provides notice of the upcoming construction work, while a lien is a legal claim against the property for non-payment. The NOC helps protect lien rights by ensuring that all relevant parties are notified and legally bound by the project’s terms.

How do I terminate or release a Notice of Commencement?  

To terminate or release a NOC in Florida, a Notice of Termination must be filed with the county clerk. This document officially ends the validity of the NOC and indicates that no further work or claims will be made under the notice. It is essential to file the release to clear any legal encumbrances or obligations tied to the project.

How does the filing process differ between counties in Florida?

While the overall process of filing a Notice of Commencement (NOC) is the same across the state, the method of filing can differ from county to county. Some counties require the submission of physical documents at the county clerk’s office, while others may accept electronic filings. It's important to verify with the local county office for specific requirements, including any additional forms or fees.

What happens if a Notice of Commencement is not filed within the required timeframe?

If a Notice of Commencement is not filed within the required 30 days of starting work, subcontractors and suppliers may lose their right to file a lien against the property. This can result in significant payment disputes, and contractors may not be able to enforce their lien rights for non-payment.

Can a Notice of Commencement be filed electronically in all Florida counties?

Not all counties in Florida currently accept electronic filing of the Notice of Commencement. While some counties, especially in urban areas, allow electronic submission through their online portals, others may require the document to be filed in person. It's best to check with the local county clerk's office to determine if electronic filing is available in your county.

What are the consequences of notarizing a Notice of Commencement in Florida?

A Notice of Commencement that is not notarized is considered invalid. This means it won't be effective as a legal document, and it could lead to significant problems such as losing lien rights or not properly securing the payment protections the NOC is designed to provide. All parties listed on the notice must ensure that it is notarized properly to meet Florida’s legal requirements.

Downloadable Resources for Florida Notice of Commencement

1. Standard NOC Form:

You can download a standard Notice of Commencement form directly from SunRay: Download NOC Form

2. Examples of Completed Forms:

While specific examples of completed forms may not be directly available on SunRay, you can refer to their blog post that outlines the required information and provides guidance on filling out the NOC correctly: What is a Notice of Commencement in Florida?.

3. County-Specific Filing Resources:

For county-specific filing instructions and resources, you can visit the SunRay website, which offers guidance on where to file the NOC based on your location in Florida: SunRay Filing Resources.

These resources will help you understand how to properly fill out and file a Notice of Commencement in Florida, ensuring compliance with state laws and protecting your rights in construction projects.

Conclusion

The Notice of Commencement is a simple but important document in Florida construction projects. It helps protect property owners from liens and ensures contractors and suppliers get paid. By filing it correctly and on time, you can avoid a lot of legal and financial trouble.

SunRay Construction Solutions also offers Notice to Owner services in Florida, ensuring that all necessary paperwork is filed to protect your payment rights.

If you need help with filing a Notice of Commencement or understanding lien laws, SunRay Construction Solutions is here to assist. Contact us at 800-403-7660 for guidance on protecting your payment rights.

Key Points

• A Notice of Commencement is required for projects over $5,000 in Florida.

• It protects property owners and contractors by clarifying lien rights.

• Make sure to file it before work starts and in the correct county.

• Failure to file can lead to legal and financial risks, like double payments and liens.

FAQs

Is a Notice of Commencement required for minor repairs or maintenance work?  

A Notice of Commencement (NOC) is generally required in Florida for any improvement to real property where the direct contract price is greater than $5,000. Minor repairs or maintenance work that falls under this $5,000 threshold typically do not require an NOC. However, it's always best to consult with your local building department or legal counsel to confirm, as some minor repairs might still necessitate a permit and thus, potentially an NOC depending on the scope and value.

Does the Notice of Commencement apply to commercial projects or only residential?  

The Notice of Commencement requirement applies to both commercial and residential construction projects in Florida, as long as the direct contract price exceeds the $5,000 threshold. The intent of the law is to protect all parties involved in any significant construction improvement.

What if the project costs less than $5,000 initially, but then exceeds it due to change orders?  

If a project initially costs less than $5,000 and thus did not require an NOC, but subsequent change orders increase the total contract value to over $5,000, then a Notice of Commencement should be filed. It's crucial to file it as soon as the project's estimated cost surpasses the threshold to ensure all parties' lien rights are protected and to avoid potential legal issues for the owner.

Is a Notice of Commencement required for HVAC replacement projects?  

For the repair or replacement of an existing heating or air conditioning system, a higher threshold applies. An NOC is generally not required unless the direct contract for such work is $7,500 or more (though some sources state $15,000 for HVAC changeouts, it's safer to use the lower figure or confirm with your local county). If the HVAC work is part of a larger project that exceeds the general $5,000 threshold, then an NOC for the entire project would be required.

How long is a Notice of Commencement typically valid in Florida?  

A Notice of Commencement is typically valid for one year from the date it is recorded, unless a different expiration date is specified within the document itself. The construction work must commence within 90 days of the NOC's recording for it to remain valid.

Can a Notice of Commencement be extended if the project runs over the expiration date?  

Yes, a Notice of Commencement can be extended. This is typically done by recording an amended Notice of Commencement that explicitly states the new expiration date. This amended notice must reference the original NOC to maintain a clear record and should be served upon the contractor and any lienors who have already provided a Notice to Owner.

What if the project is delayed significantly after the NOC is filed but before work begins?  

If the project does not begin within 90 days of the NOC being filed, the NOC effectively becomes invalid. In such a scenario, you would need to file a new Notice of Commencement before the work actually starts to ensure proper compliance with Florida law and to protect all parties' lien rights.

Does an amended NOC change the original expiration date?  

Yes, if an amended Notice of Commencement is filed to extend the project duration, it will supersede the original expiration date. The amended NOC must clearly state the new effective expiration date.

Who is responsible for filing the Notice of Commencement: the owner or the contractor?  

The property owner is generally responsible for signing and filing the Notice of Commencement. However, if there is a construction lender involved in the project, the lender is typically responsible for recording the NOC. Regardless of who records it, the owner must sign the Notice of Commencement. Contractors and suppliers are typically not responsible for filing this notice.

What is an "Owner's Representative" in the context of a NOC?  

An "Owner's Representative" is a person or entity designated by the property owner in the Notice of Commencement to receive notices or other documents related to the construction project. This allows for official communication to be directed to someone authorized by the owner, rather than directly to the owner, which can be useful if the owner is not always on-site.

As a subcontractor or supplier, how do I find the Notice of Commencement for a project?  

Subcontractors and suppliers can typically find the Notice of Commencement by searching the official records of the county clerk's office where the property is located. Many county clerks offer online search portals. The NOC should also be posted at the construction site in a conspicuous place.

How does a Notice of Commencement affect a property owner's ability to sell or refinance their property during the construction period?  

A recorded Notice of Commencement serves as a public record that a construction project is underway. This can impact selling or refinancing because it indicates potential for future liens. Lenders and buyers will want assurance that all contractors and suppliers are being paid and that proper lien releases will be obtained to ensure clear title. An active NOC can make it more complex to clear title for a sale or refinancing until the project is completed and a Notice of Termination is filed.

What are the consequences for contractors if an owner fails to file a Notice of Commencement?  

If a property owner fails to file a required Notice of Commencement, it can have serious consequences for contractors. While the owner faces the risk of double payment and liens, subcontractors and suppliers may lose their lien rights if they cannot properly identify the owner or the project details from a publicly recorded NOC. This makes it harder for contractors to ensure their subcontractors and suppliers are paid and that the project is free of potential lien claims against the owner, potentially leading to payment disputes.

Are there any situations where a Notice of Commencement is NOT required in Florida?  

Yes, a Notice of Commencement is generally not required for:

• Projects where the direct contract price is $5,000 or less (with the exception of HVAC replacements which have a $7,500 or $15,000 threshold depending on interpretation and local county specifics).

What are the legal implications of an improperly filed or invalid Notice of Commencement for all parties?  

An improperly filed or invalid NOC (e.g., missing information, not notarized, not filed on time, or not posted at the job site) can lead to significant legal and financial headaches:

• For the Owner: Increased risk of having to pay twice for the same work, as lienors may not be properly notified and protected. Liens can be placed on the property even if the owner has paid the general contractor. It can also delay permit issuance and create issues during property sales or refinancing.

• For Contractors: While not directly liable for filing, an invalid NOC can hinder their ability to manage the project effectively, deal with potential lien claims from their sub-tier parties, and ensure a clean project closeout.

• For Subcontractors and Suppliers: They may lose their lien rights, making it harder to secure payment if the general contractor defaults.

What are the most common reasons a Notice of Commencement might be rejected by the county clerk?  

Common reasons for rejection include:

• Missing or Incorrect Information: Any required field being left blank or containing inaccurate details (e.g., incorrect legal description, owner's name, or contractor's license number).

• Not Notarized: The NOC must be properly signed and notarized by the owner.

• Illegible Information: Handwriting or printing that is difficult to read.

• Improper Formatting: Not adhering to the county's specific formatting or margin requirements.

• Incorrect Fees: Not including the correct filing fees.

• Filing in the Wrong County: Submitting the NOC to a county other than where the property is located.

Is it necessary to post a physical copy of the NOC at the job site? Why?  

Yes, Florida law requires that a certified copy of the recorded Notice of Commencement be posted at the construction site in a conspicuous place. This is crucial because it provides public notice to all parties working on the project (especially subcontractors and suppliers who may not have direct contact with the owner) about the project's details and who to send Notices to Owner to. Failure to post can affect the validity of the NOC and the lien rights of others.

What should I do if the information on the posted NOC doesn't match the information I received from the owner/contractor?  

If you are a subcontractor or supplier, and the information on the posted NOC conflicts with what you were provided, you should:

1. Immediately notify the owner and general contractor of the discrepancy in writing.

2. Verify the correct information directly with the county clerk's office where the NOC was filed.

3. Adjust your records and Notice to Owner accordingly to ensure all information is accurate based on the officially recorded document. Sending a Notice to Owner with incorrect information could jeopardize your lien rights.

How can I ensure my Notice of Commencement is filled out accurately and completely?  

To ensure accuracy and completeness:

• Use the correct, county-specific form: Many counties have their own slightly modified forms.

• Gather all required information beforehand: This includes legal description, owner details, contractor details, lender info, and bond info (if applicable).

• Double-check all spellings and numbers: Especially legal descriptions, addresses, and license numbers.

• Ensure proper notarization: The owner must sign in front of a notary public.

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.