A construction lien is a financial claim against the property brought by a contractor, subcontractor, supplier or other party to the project who has not been paid per the terms of their contract. If property has a construction lien, it cannot be sold or refinanced until the title is clear. Florida’s law on construction liens is complicated but generally effective.
Florida construction lien law
Construction liens are addressed in Part I of Chapter 713 of the Florida Statutes. There are 47 sections addressing lien law. This is practically as long as some popular novels.
Construction liens were also referred to as mechanic’s liens under common law. They provide a way to enforce subcontracts or purchase orders against the property owner, even if the property owner was not part of the original contract.
Florida statutes recognize the expansive “privity” that an outsider has to enforce a contract. The third party seeking the lien can do so as long as the property owner is timely notified of the third party’s existence and the third-party claims follow the law in Chapter 713. Essentially, under Chapter 713, the property owner voluntarily assumes liability for payments made or not made to contractors, subcontractors, suppliers and others involved in the project.
What must be included in a construction lien?
Construction liens must identify the owner and contractor, subcontractor, supplier or other party bringing the claim. It must identify improvements made on the property, the type of work performed, the amount unpaid, and the first and last dates work was performed. While gross misstatements may mean a lien will not be granted, the law is interpreted rather liberally, and mere “inadequate” descriptions can still allow a party to obtain a construction lien.
Florida lien law is complicated but effective
In its most basic form, if a party to a construction project is not paid, they can record an enforceable lien against the owner’s property. However, there are many procedures that must be followed to obtain this goal. Florida law has many conditions associated with construction liens that work to provide safeguards throughout the process. Ultimately, obtaining a construction lien is a legal process, and due to the complexities in Florida lien law, often requires a professional to assist in the process.
