What is the process for filing a lien for unpaid work in construction?
In Florida, filing a lien for unpaid work in construction requires following a precise legal process. Generally, a lien is a document that is filed with the county clerk advising potential buyers or creditors that the property in question is being claimed for a debt due to a contractor or supplier for labor and materials. The lien process begins by sending a Notice to Owner (NTO) at least 45 days prior to filing the lien. The NTO is a document that informs the owner that they are likely to be billed for unpaid services to their property. The notice must have certain information included such as the amount of money due, the name of the lienholder, and the work that was done. After the notice is sent, the property owner must be given 20 days to respond and pay any amounts due before the lien can be filed. If the owner does not respond within the 20-day period, then the contractor or supplier can file a lien. The lien must include the name of the lienholder, the amount of money owed, and the property address. It must be filed with the county clerk and the lienholder may be required to post a copy of the lien on the property. If payment still does not come after 120 days, then the lienholder may be able to begin foreclosure proceedings. This process can be very risky, so it is important for contractors or suppliers to always be mindful of the process when filing a lien in Florida.
Related FAQs
Is design-build a form of construction contract?What entities are liable when construction defects occur?
What are the legal requirements for submitting a bid for a construction project?
What is the role of a construction manager in the planning and execution of a project?
What is the difference between a contractor and a principal in a construction project?
How does the law protect contractors when disputes arise in the projects they are working on?
What happens when a contractor fails to deliver?
What is the difference between a fixed-price contract and a time and materials contract?
How do I protect my rights in a construction dispute?
What are the legal requirements for filing a claim against an owner in a construction dispute?
Related Blog Posts
Explaining Construction Law: What You Need to Know - July 31, 2023How Construction Law Can Protect Your Business - August 7, 2023
Regulations to be Aware of When Pursuing Construction - August 14, 2023
Leveraging Construction Law for Your Project - August 21, 2023
Comprehending Construction Law in the Changing Landscape - August 28, 2023