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Protect Yourself and Your Investment

The Florida Construction Lien Law (Florida Statue 713)

 

The Construction Lien Law in Florida that states that those who work or provide materials for your property and are not paid in full may have a right to enforce their claim for payment against your property. This claim is known as the Construction Lien.

 

If your contractor fails to pay subcontractors or material suppliers, the people who are owed money may look to your property for payment, even if you have paid your contractor in full. This means that if a lien is filed against your property, your property could be sold against your will to pay for labor, materials, or other services which your contractor may have failed to pay.

 

This document provides information regarding Florida Statute 713, Part 1, as it pertains to home construction and remodeling, and provides tips on how you can avoid construction liens on your property.

 

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Fl Construction Lien Law

Protecting Yourself

If you hire a contractor and the improvements cost more than $2,500, you should know the following:

- You may be liable if you pay your contractor and he then fails to pay his suppliers or contractors. There is a way you can protect yourself. A Release of Lien is a written statement that removes your property from the threat of lien. Before you make any payment, be sure you receive this waiver from suppliers and subcontractors covering the materials used and work performed on your property.

- Request from the contractor, via certified or registered mail, a list of all subcontractors andsuppliers who have a contract with the contractor to provide services or materials to your property.

- If your contract calls for partial payments before the work is completed, get a Partial Release of Lien

covering all workers and materials used to that point.

- If your contract calls for partial payments before the work is completed, get a Partial Release of Lien

covering all workers and materials used to that point.

- Before you make the last payment to your contractor, obtain an affidavit from your contractor that specifies all unpaid parties who performed labor, services or provided services or materials to your property. Make sure that your contractor provides you with final releases from these parties before you make the final payment.

- Always file a Notice of Commencement before beginning a home construction or remodeling project. The local authority that issues building permits is required to provide this form. You must record the form with the Clerk of the Circuit Court in the county where the property being improved is located. Also post a certified copy at the job site. (In lieu of a certified copy, you may post an affidavit stating that a Notice of Commencement has been recorded. Attach a copy of the Notice of Commencement to the affidavit.)

- In addition, the building department is prohibited from performing the first inspection if the Notice of Commencement is not also filed with the building department. You can also supply a notarized statement that the Notice has been filed, with a copy attached. The Notice of Commencement notes the intent to begin improvements, the location of the property, description of the work and the amount of bond (if any). It also identifies the property owner, contractor, surety, lender and other pertinent information. Failure to record a Notice of Commencement or incorrect information on the Notice could contribute to your having to pay twice for the same work or materials.

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