Claim of Lien

What Is a Claim of Lien?

Under Florida's Construction Lien Law (Chapter 713, Florida Statutes), anyone who provides labor, services, or materials to improve real estate has a legal right to be paid. If the property owner (or the general contractor) fails to pay them, the unpaid worker can record a Claim of Lien against the property. This places a severe cloud on the title, preventing the owner from selling or refinancing the home until the debt is settled.

The Strict Statutory Deadlines

Florida's lien laws are notoriously strict. If a contractor misses a deadline by even one day, their Claim of Lien is entirely invalid:

1. Notice to Owner (NTO) — Subcontractors who do not have a direct contract with the homeowner must serve a formal Notice to Owner within 45 days of starting work, warning the owner that they reserve the right to lien the property if the general contractor doesn't pay them.
2. Recording the Lien — The actual Claim of Lien must be recorded in the county public records within 90 days of the contractor's final day of providing meaningful labor or materials.
3. Filing a Lawsuit — A Claim of Lien is only valid for 1 year. To enforce it, the contractor must file a civil complaint seeking foreclosure of the lien within one year of recording it, otherwise the lien automatically expires.

Protecting Yourself as an Owner

Property owners can be forced to pay twice for the same work if they aren't careful. If you pay your general contractor in full, but the general contractor steals the money and fails to pay the roofers, those roofers can legally record a Claim of Lien and force the sale of your house. To prevent this, owners must demand a Release of Lien from every subcontractor and supplier before handing final payment to the general contractor.

Related Terms

• Lien — The overarching category of property encumbrances
• Cloud on Title — The immediate result of a recorded claim
• Foreclosure — The ultimate legal remedy used to enforce the lien

Barnes Walker Construction Law

Barnes Walker's attorneys represent Florida property owners in defending against fraudulent or expired construction liens, and assist contractors in legally enforcing valid Claims of Lien. Request a legal inquiry for assistance.

Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC