What is the process for filing a lien if payment is not received for construction work?
In Florida, a lien is an encumbrance on real property that a creditor can file if they have not been paid for services or materials provided in a construction projects. If payment is not received for construction work, filing a lien against the property is one way to ensure that the creditor gets paid. In order to file a lien, a Notice to Owner must be served on the owner of the property. This document must include the name and address of the creditor, a description of the work done, the amount of money owed, and the name of the person who contracted the work. In addition, the Notice to Owner must include a warning that a lien might be filed if payment is not made. Once the Notice to Owner is served, the creditor must wait 20 days for payment. If payment is not received within this time period, then the creditor can file and record a Claim of Lien in the public records of the county in which the property is situated. The Claim of Lien must include the information from the Notice to Owner, as well as additional information such as the date of the lien and the name of the person who contracted the work. Once the Claim of Lien is recorded, the creditor can either negotiate an agreement with the owner to receive payment or sue to enforce the lien. If a suit is necessary, the creditor must do so within a certain period of time or else the lien may be considered void. Filing a lien can be a complicated process, and legal action should be taken with the advice of an attorney. In the end, filing a lien is one way for a creditor to receive payment if they have not been paid for construction work.
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