Full question:
How to place a lien against a commercial property by a contractor. We did $5000.00 worth of work and paid our subcontractors but never received payment from customer. How do I place a lien against that property? Thanks.
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: Florida
Answer:
In Florida, contractors, subcontractors, or material suppliers (collectively referred to as "lienors") who provide labor or materials for improving private real property can place a lien on that property for the value of the work done (Fla. Stat. § 713.02). If you have a direct contractual relationship with the property owner (known as being in "privity"), the process is more straightforward. Ensure your contract includes the required warning language from Fla. Stat. § 713.015.
To protect your lien rights, you must file a claim of lien in a timely manner. This involves completing Form FL-03201 and adhering to the requirements in Fla. Stat. § 713.08(1). If you are not in privity with the owner, you must also serve a "Notice to Owner" within 45 days of starting work or delivering materials (Fla. Stat. § 713.06(2)(a)). This notice alerts the owner to your presence and helps prevent them from paying the contractor without compensating you.
After fulfilling the notice requirements, you can record your claim of lien in the public records of the county where the property is located within 90 days of completing your work (Fla. Stat. § 713.08(5)). The claim must be prepared, signed, and notarized before being submitted to the clerk of court. Following this, promptly serve the claim of lien to all relevant parties listed in the notice of commencement via certified mail (Fla. Stat. § 713.08(4)(c)).
Finally, you must initiate a court action to foreclose the lien within one year of recording it (Fla. Stat. § 713.22). If the owner contests the lien, they can file a complaint, requiring you to respond within 20 days (Fla. Stat. § 713.21(4)).
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.