Question 1

What is a no lien affidavit in Florida?

Accepted Answer

A no lien affidavit is a sworn statement by the property owner certifying that: no labor, services, or materials have been furnished to the property that could give rise to a construction lien (mechanics lien), or if work has been performed, all workers and suppliers have been paid in full. In Florida, the no lien affidavit is: required by most title insurance companies before issuing a title insurance policy, typically signed by the seller at or before closing, and used to protect the buyer and lender from undisclosed construction liens.

Question 2

Why is a no lien affidavit important in Florida real estate?

Accepted Answer

Importance: Florida’s construction lien law (Chapter 713) is aggressive: contractors, subcontractors, and material suppliers can file liens against the property even if the property owner paid the general contractor in full (if the general contractor did not pay the subcontractors or suppliers). Construction liens can be filed up to: 90 days after the last furnishing of labor or materials (Section 713.08). The no lien affidavit: provides the title company with assurance that no liens will be filed after closing, creates potential liability for the seller if the affidavit is false (the seller who makes a false affidavit can be liable for the buyer’s losses and may face criminal penalties for perjury), and protects the buyer from unexpected lien claims.

Question 3

What should a Florida no lien affidavit include?

Accepted Answer

Contents: the property owner’s identification (name, address), the property description (legal description or address), a statement that: no improvements, alterations, or repairs have been made to the property within the last 90 days (or, if work has been performed, that all laborers and suppliers have been paid in full), a statement that there are no pending or threatened lien claims, an acknowledgment that the affidavit is being relied upon by the buyer and the title company, and the owner’s signature, sworn before a notary public. If work has been performed, the title company may also require: a contractor’s final affidavit, lien releases from subcontractors and suppliers, and proof of final payment.

No-Lien Affidavit

No Lien Affidavit in Florida Real Estate

Purpose

Contents

If Work Performed

Related Terms

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