Ending a Notice of Commencement in Florida: What Owners and Contractors Need to Know

1. The Florida Construction Lien Law requires owners to record a notice of commencement before starting or restarting construction on a project.
2. The notice of commencement is important for lienors as it establishes their priority interest in the property.
3. Owners may terminate the notice of commencement due to new financing or project termination, but they must follow all requirements set forth in the Florida Statutes. 1. The owner must include the same information as in the notice of commencement.
2. The owner must provide the book and page reference numbers and date of the notice of commencement.
3. The owner must specify the date on which the notice of commencement is terminated, which must be at least 30 days after the notice of termination is recorded.
4. The owner must state that the notice of termination applies to all the real property subject to the notice of commencement or specify the portion of the real property to which it applies.
5. The owner must state that all lienors have been paid in full.
6. The owner must declare that copies of the Notice of Termination have been served to the contractor and each lienor with a direct contract with the owner or who has served a notice to owner before recording the Notice of Termination. – Verify the accuracy of the Notice of Termination before recording it.
– Obtain a contractor’s final payment affidavit to show who has and has not been paid on the project.
– Ensure that all lienors on the project are paid in full before recording the Notice of Termination.
– Recognize the significance of receiving a Notice of Termination as a lienor.
– Act quickly to ensure lien priority and that the lien will relate back to the original notice of commencement. 1. The Notice of Termination under Florida Construction Lien Law terminates the notice of commencement 30 days after recording or the date stated in the notice.

2. A lienor who is owed money on a project should prepare and record a claim of lien before the termination date of the Notice of Termination to ensure the lien relates back to the recording of the original notice of commencement/lien.

3. Recording the claim of lien before the termination date ensures the lien takes priority over any future encumbrance on the property, such as a new mortgage from a new lender.

https://www.jimersonfirm.com/blog/2013/12/terminating-a-notice-of-commencement-in-florida-owner-and-lienor-beware/