- Florida homeowners must be aware of regulations that guarantee a remodeling contractor will receive payments due.Modern kitchen image by MAXFX from Fotolia.com
Florida law states that any contractor that performs home construction or remodeling on your property has a legal right to place a lien on your property if they are not paid. The Construction Lien Law states that sub-contractors must send you a Notice to Owner, which gives them the right to collect payment from you if the main contractor fails to compensate them for the work. For example, you hire a contractor to remodel your kitchen and that person installs new tile flooring; however, they hire a second contractor to refinish the cabinets. You did not directly hire or pay this sub-contractor, but as the property owner, you are still liable if they do not receive payment from the contractor that hired them. - A Notice to Owner must contain the sub-contractor's name and address, and give a brief description of the materials and the kind of work that is being performed. The notice must also inform you of the sub-contractor's direct agreement with the contractor. You may have to pay the sub-contractor even if you have fully paid the contractor you hired. In some cases, you may be forced to sell your property to pay the sub-contractor for their services. You must receive a Notice to Owner from the sub-contractor no later than 45 days after their first day on the job. If the sub-contractor fails to supply you with a Notice to Owner, a lien cannot be placed on your property.
- You have the right to ask the contractor and sub-contractor for a Release of Lien, which removes your property from the threat of a construction lien. The simplest way to protect yourself is to ask the contractor to list all the parties they will be working with on your project. Be sure to request this information before you make any payments. Prior to making a final payment to the contractor, ask for an affidavit listing any sub-contractors that have not been paid and request notices from these secondary parties proving they have been fully paid. As a final protection, make sure the Circuit Court Clerk in your county has a Notice of Commencement before the work begins. A Notice of Commencement is given to anyone receiving a building permit and a copy of the notice should be posted at the job site. This notice states that the work is to begin and names the location of the property and the type of work that is to be done. Your local building department cannot initiate a first inspection of the work without your Notice of Commencement on file.
- Construction liens are valid for 1 year, but a sub-contractor can seek legal action to extend the period. If you disagree with a lien placed on your property, you may file a Notice of Contest of Lien during the 1-year period. The sub-contractor is required to file a lawsuit to enforce the lien within 60 days of your notice to contest. If the sub-contractor does not act within the 60-day window, the lien becomes invalid. One of the best ways to avoid problems with contractors is to check their background and verify their license by contacting the Department of Business and Professional Regulation.
Florida Department of Business and Professional Regulation
1940 North Monroe Street
Tallahassee, Florida 32399
850-487-1395
myfloridalicense.com
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