Florida Construction Liens: Representing the Residential Owner

This article talks about how the law in Florida protects homeowners who are having a house built. In the past, homeowners could be held responsible for paying bills twice, but now the law protects them as long as they follow certain rules, like not paying the builder before receiving a notice. There are also ways for homeowners to defend themselves if they are faced with a construction lien. The laws about construction liens are very owner-friendly. There are rules that help property owners protect themselves from potential problems with liens. It’s important for property owners to follow their lawyer’s instructions carefully and not talk about the situation with anyone else, or sign anything without their lawyer’s approval. Property owners should also make sure their mailing address is correct and pick up any important mail right away. Lawyers should include all of these instructions in the paperwork they give to their clients, so they understand what’s going on and how much everything will cost. This means that the lawyer needs to check official records to make sure the client’s property papers are correct and that any construction work was started within the right amount of time. They also need to check if there are any mortgages on the property. If a property owner is dealing with construction liens, they need to gather important information and documents. This includes the construction contract, construction loan agreement, and copies of all lien documents. They should also keep all envelopes and note the date they received each document. The attorney may also contact the construction lender to get copies of lien documents and details about payments made. It’s important to get the builder’s contracts and final billing, as well as review records of when work was done and materials were delivered. All this information will help create a timeline of events and determine the validity of any liens. Even if a lien is valid, it doesn’t guarantee that the lienor will get paid. If a contractor doesn’t finish the job and get paid, the homeowner has to make sure all the workers and suppliers are paid. The homeowner can also pay the workers directly in certain situations. To do this, the homeowner’s lawyer should send a letter to each worker asking for a list of what they are owed. If the workers don’t respond or lie, they lose their right to get paid. The homeowner should also ask the contractor for a list of all the people who worked on the job. If the contractor doesn’t give the list within 10 days, they might lose their right to get paid. If a contractor doesn’t get paid for their work on a property, they can put a lien on the property. However, the property owner can defend themselves by showing that the contractor didn’t follow the proper rules for filing the lien. The contractor also has to prove that they have a direct contract with the owner. The law doesn’t clearly define what “privity” means, which can make it challenging for the contractor to prove their case. In simple terms, case law has consistently held that just knowing a contractor is working on your property doesn’t create a special legal relationship with them. Unless the owner promises to pay the contractor directly, and there’s proof of that promise, the contractor can’t claim they have a special legal connection to the owner. If a contractor wants to be sure they have a legal connection to the owner, they should talk directly to the owner about their work and get clear promises in writing. Just picking out materials or colors for the work probably isn’t enough to create a special legal relationship with the owner. When deciding if a lienor has the right to be paid directly by the owner, there are some important things to consider. These include who the lienor initially talked to about their work, if they communicated with the owner about their work, and if the prime contractor stopped working on the job. It’s also important to know who the lienor sent their invoices to and how they described their relationship with the owner. If the lienor received any written promises from the owner to pay them directly, that’s also important. It can be tricky for the lienor to prove they have the right to be paid directly by the owner, especially if the owner says they didn’t agree to it. If the owner already promised to pay the contractor for the work, the lienor might not have the right to be paid by the owner as well. But if the owner promises to pay the lienor directly because they don’t trust the contractor to pay them, that can be enough for the lienor to be paid by the owner. Any promise to pay directly would need to be in writing and signed by the owner. If someone puts a lien on your property, you have a few options. You can pay the amount in full or negotiate a lower payment. If the lien isn’t valid, you can wait for it to expire or speed up the process by contesting it in court. If the court rules in your favor, the lien will be removed, and the person who filed it might have to pay your legal fees. Your actions will depend on the specific situation and what you want to achieve, such as selling or refinancing the property. Florida’s construction lien laws have become more favorable for property owners since 1991. If you are a homeowner dealing with the possibility of construction liens, it’s important to seek legal advice right away. A lawyer can help you understand the law, identify possible defenses, and protect your interests. It’s important to work with a knowledgeable attorney who can provide you with good advice and help you make the best decisions for your situation. S.B. 1330, a law in Florida, protects property owners from being held liable for improper payments to contractors and requires them to be cautious with payments after a notice of commencement expires. The law also outlines the steps owners should take to protect themselves from construction liens. It’s important for owners to follow these guidelines to avoid potential legal issues. Fred R. Dudley is a lawyer who specializes in construction law. He has a lot of experience, including serving in the Florida House and Senate.

Source: https://www.floridabar.org/the-florida-bar-journal/florida-construction-liens-representing-the-residential-owner/