Florida Construction Lien Law

WARNING TO PROPERTY OWNERS

SUMMARY OF FLORIDA CONSTRUCTION LIEN LAW

This Summary is provided to all Owners as required by Chapter 713, Florida Statues and the Citrus County Building Ordinance. You may have received this notification when you contracted with your builder. This is mailed in the event you have misplaced or did not receive one at another time. Please read carefully. It may save you from paying twice for commercial or residential repairs, improvements or new construction exceeding $2,500.00, subject to statutory exemption.

Since you or your contractor has applied for a building permit for work to be done on property owned by you, you should be aware of the following:

Any person who furnished labor (a contractor, subcontractor or laborer) or supplies materials for repairs, improvements or new construction may be entitled to a lien against your property if they are not paid in full by your contractor, even though you have paid the contractor in full.

YOU COULD BE REQUIRED TO PAY TWICE FOR THE IMPROVEMENTS THAT YOU ARE HAVING CONSTRUCTED ON YOUR PROPERTY, AND YOUR PROPERTY MAY BE SUBJECT TOA LIEN UNLESS YOU FULLY COMPLY WITH YOUR OBLIGATIONS UNDER THE FLORIDA CONSTUCTION LIEN LAW.

The following is a partial summary of Owner's obligations:

1. NOTICE OF COMMENCEMENT: Owner or his agent must record in the Clerk's office at the Courthouse before you or your Contractor starts construction and a certified copy must be posted on the job site. If your improvement is financed, check with your mortgagee to determine whether this was accomplished. Construction must start within ninety (90) days of the date that the Notice of Commencement is recorded in order for the Owner to benefit from the Construction Lien Law.

2. NOTICE TO OWNER: You may receive one or more Notices to owner from Subcontractors, suppliers or others who provide services or materials in connection with your building project. The Notice to owner is not a lien or encumbrance but is notification that you must do certain things to protect the person or company that sent the Notice to Owner. The procedure for proper payments is detailed in Section 713.06, Florida Statutes. Consult with a professional if you do not understand, need more information, or are unsure of responsibilities.

3. CONTRACTOR'S AFFIDAVIT: Before you make the final payment to your Contractor, you must obtain an affidavit from your Contractor that states he has paid all bills on the improvement or that lists unpaid laborers, suppliers, and subcontractors. You must follow the procedure in Chapter 713, Florida Statutes, or you may ultimately to pay twice for the improvement.

This Summary is not a substitute for the advice of a professional about the Construction Lien Law and, IF YOU DO NOT UNDERTAND YOUR OBLIGATIONS, YOU SHOULD SEEK ASSISTANCE THROUGH LEGAL COUNSEL.

NOTICE
Florida State Statutes - 713
Effective Date - February 1, 1989

When any person applies for a Building Permit, they shall be required to complete and submit two (2) or more copies of a form of Notice of Commencement on forms supplied by the County for any improvement (s) for which the direct contract price exceeds $2,500.00 conforming with the provisions of Section 713.13, Florida Statutes, one of which shall be attached to the Building Permit at the time the Building Permit is issued by the County. Nothing herein shall be interpreted as requiring or encouraging the recording of the Notice of Commencement prior to the issuance of a Building Permit.

An Applicant who is not the person whose right, title and interest is subject to attachment under Chapter 713, Florida Statutes, shall, as a condition to the issuance of a Building Permit, promise in good faith that they will deliver to the person whose property is subject to attachment a statement summarizing the Construction Lien Law which shall be supplied by the Building Division. In addition, the Building Division shall furnish to the permit applicant, by hand delivery, and to the property owner of record, by certified mail, return receipt requested, a concise printed statement explaining the provisions of the Florida Construction Lien Law, Part 1 of Chapter 713, Florida Statutes, relating to the recording and to the posting of copies of Notice of Commencement and encouraging the owner to record a Notice of Commencement and post a copy thereof in accordance with the provision of Section 713, Florida Statutes.

Prior to any inspections taking place on completed work, the Director of the Citrus County Building Division and/or his employees shall determine that there is on file a recorded certified copy of the Notice of Commencement, or a notarized affidavit stating that the Notice of Commencement has been filed for recording attached to a copy of the Notice of Commencement, as required by Section 713.13, Florida Statutes. The failure of the Owner/Authorized Agent to post a recorded certified copy of the Notice of Commencement, or an affidavit affirming the filing of the Notice of Commencement, as required by Section 713.13, Florida Statutes, shall relieve the Administrative Official or his employees from conducting the requested inspection, and shall render the Owner or Authorized Agent liable for any expenses incurred by the Division in attempting to make said requested inspection.

The Board of County Commissioners may, by resolution, provide for, charge and collect reasonable fees for furnishing copies of the forms and the printed statement in an amount not to exceed five dollars ($5.00) to be paid by the applicant for each permit, in addition to all other costs of the permit. However, no forms or statements need to be furnished nor shall such additional fee be obtained from applicants for permits in those cases in which the owner of a legal or equitable interest (including that of ownership of stock of a corporate landowner) of the real property to be improved is engaged in the business of construction of a building for sale to others and intends to make the improvements authorized by the permit on the property and upon completion will offer the improved real property for sale.