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Notice to Owner: Full Service
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Use Builder's Notice Corp.'s full property research service for preparation and serving of Notices to Owner. You can leave the details up to us. What do you need to know about the Construction Lien Law? Here are a couple of articles from our counsel to get you started , or Click Here to get started right away with a real no-obligation "test"Notice to Owner prepared by Builder's Notice Corp..
» Click Here to Create a Test NTO » Click Here to Signup for NTO Services
Timing - The following diagram depicts the critical time frames involved in construction liens. Click Here or on the diagram below for the full details on each milestone in the diagram.
Enforcement Timing and Statute of Limitations
What is a Notice to Owner? - A Notice to Owner is the paper that is sent to the owner by a lienor who is not dealing directly with the owner. It tells the owner that the sender is looking to the owner to be sure that the sender is paid before the owner pays the contractor. This also gives the owner warnings and the opportunity to see that the sender is paid in order that he not be later surprised with a lien from someone the owner never knew existed. Actual notice by the owner of the non-privity lienor working on the job is no substitute for the written document. Generally, the Notice to Owner must be served not later than 45 days from the first labor, services, or materials at the job site. The 45 days begin to run from the beginning of the manufacture of specially fabricated materials not readily useable elsewhere.
Who Serves the Notice to Owner? - Any potential lienor who is not dealing directly with the owner. There are three exceptions. A laborer, a professional lienor, and a person who is working only on subdivision improvements need not serve a Notice to Owner. All other lienors who
are not dealing directly with the owner must timely serve a Notice to Owner as a preliminary step to obtaining lien rights. This notice must be timely served, even where no problem has yet developed if one wants to later claim lien rights. If this preliminary step is not complied with, the right to later claim a construction lien will be gone.
What Does "Served" Mean? - Served means delivered in a special way. The Florida Construction Lien Law defines "service" in the following ways:
By mailing postage prepaid by registered or certified mail to the person to be served at his last known address, and evidence of delivery.
By actual delivery. (Note: this also seems to allow Federal Express, Fax, and other methods of quick delivery.
If none of the above can be done, then by posting on the job site.
Is There A Standard From Release? - There are Florida Statutory release forms in F.S. 713.20. However, releases may contain wording different from the Florida Statutory Language. Be very careful when giving or obtaining releases of lien to be sure that you understand the language. Be sure that you are not giving away more than is intended. Likewise, if you are making payment and getting a release, be sure that you are getting a release to the full extent of payment made.
What Is A Claim of Lien? - A claim of lien is a verified document that is recorded in the public records among other documents of title (e.g. deeds, mortgages) to give notice to the world of the lienor's claim against the property for the amount unpaid in improving the property. The claim of lien must be recorded not later than 90 days from the last performance of work or delivery of materials under the contract at the site, excluding warranty work. Note that 90 days is not exactly three months.. A copy must be served upon the owner within 15 days of recording. Failure to serve the copy is a defense only to the extent that the owner can show harm resulting from failure to timely serve the copy.
How Long Does This Lien Last? - The lien will remain effective against the property for a period of one year. There is only one way to extend that time. The lienor must file suit to enforce or foreclose the lien within the time that it is effective to keep it alive in excess of one year. A lienor cannot just file a renewal or extension of lien.
There are two ways to shorten the one-year period, aside from voluntary release. If a notice of contest of lien is recorded, the lien's effective time is shortened to 60 days from the date the clerk serves a notice of contest of lien on the lienor.
The second shortening device is a summons to show cause filed by any interested party. When a lienor receives such a summons, he or she must, generally, file a counterclaim within 20 days of service of the summons or the court will enter an order discharging the lien.
A transfer of the lien to bond or cash deposit does not affect the duration of the lien.
How Is The Lien Enforced? - The lien is enforced by a suit usually asking that a judgment be entered recognizing the lien and selling the interest in the property of the owner to pay the lienor. The owner's interest in the property may be sold at judicial sale subject to prior liens and mortgages, but free and clear of inferior liens and mortgages if the inferior parties are joined in the suit. If you are successful in any amount in excess of what was offered to you prior to trial you should recover your attorney's fees. If you do not have your lien recognized due to a failure to prove your case (e.g. bad notice, untimely lien, improper work in excess of your claim), and you do not otherwise obtain a judgment against the owner, then you will have to pay your opponent's attorney fees.
The following is a quick reference for complying with the Florida Construction Lien Law. You many want to retain it as a guide. It is not a substitute for specific legal advice.
Who Can Lien? - The following have lien rights for labor, services or materials furnished in improving the real property.
a. Laborer - a person furnishing his/her own labor only.
b. Materialnaan - a person furnishing materials or rental equipment only, with no labor for installation of materials. This person must be selling to an owner, contractor, subcontractor, or a sub-subcontractor. A person furnishing materials does not fall within the definition if the person is selling to another materialman or to a sub-sub-subcontractor. The materials must be delivered to the site or sold for direct delivery to the site (as distinguished from being sold for inventory without a particular job in mind).
c. Contractor - a person who furnishes more than one individual's labor and/or more than just materials who contracts with an owner.
d. Subcontractor - a person who furnishes more than one individual's labor and/or more than just materials who contracts with a Contractor.
e. Sub-subcontractor - a person who furnishes more than one individual's labor and/or more than just materials who contracts with a Subcontractor.
f. Professional Lienors - Architects, Landscape Architects, Engineers, Land Surveyors, Interior Designers, and Mappers.
What Is Lienable? - The interest in property of the owner who contracts for the improvements is lienable. Usually the landlord's interest is not lienable in a leasehold situation unless the landlord has contracted for the improvements. There are limited exceptions.
Who must Serve Copies of the Notice to Owner? - If there is a party between your customer and the owner, you must serve that party with a copy of the Notice to Owner. If you are a material supplier to a subcontractor, or if you are a sub-subcontractor, then you must serve a copy of the Notice to Owner on the prime contractor. If you are a materialmen to a sub-subcontractor, then you must serve a copy of the Notice to Owner on the contractor. If the material supplier to the sub-subcontractor knows who the subcontractor is, then a copy must also be served on the subcontractor who is dealing with your customer (who already knows you are there because of your direct dealing). It is a good practice to give your customer a copy, but not legally required.
What if I don't want to keep track of all of these rules myself? - Sign up for a test case with Builder's Notice Corp.'s full service preparation and serving of Notice to Owners. Just give us your information and we will prepare a real Notice to Owner for one of your jobs which you may view without any obligation to you.
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