Construction Lein Effects

Q. What is a construction lien and how does it effect an owner of a property and a contractor?

A. Florida’s Construction Lien Law allows contractors, materialmen and vendors to enforce their claims for payment against your property by filing and foreclosing construction liens. These liens may result in the loss of your property. Recognizing the severity of the risks to homeowners, as well as the complexity of the Construction Lien Law, the Florida Legislature recently required that certain "plain English" disclosures be included in any direct contracts between an owner and a contractor relative to improvements to single or multiple family dwellings of up to four units. The following disclosures will alert homeowners as to some of the risks and pitfalls lurking in the construction jungle:

"According to florida’s construction lien law (sections 713.001-713.37, florida statutes), those who work on your property or provide materials and are not paid in full have a aright to enforce their claim for payment against your property. This claim is known as a construction lien. If your contractor or a subcontractor fails to pay subcontractors, sub-subcontractors, or material suppliers or neglects to make other legally required payments, the people who are owed money may look to your property for payment, even if you have paid your contractor in full. If you fail to pay your contractor, your contractor may also have a lien on your property. This means if a lien is filed your property could be sold against your will to pay for labor, materials, or other services that your contractor or a subcontractor may have failed to pay. Florida’s construction lien law is complex and it is recommended that whenever a specific problem arises, you consult an attorney."

If the contract does not contain the above language, then a contractor cannot place a lien on your property for any money owed to him, but other parties (e.g. subcontractors) could still claim a lien. Article submitted by: Richard K. Barra, Esq. Scott, Harris, Bryan, Barra & Jorgensen, P.A. 4400 PGA Blvd. #800 Palm Beach Gardens, FL 33410 (561) 624-3900 Email: rkbarra@scott-harris.com

Posted by Donald Urschalitz P.A. at May 20, 2004 04:08 PM