1. Developers must file a notice of commencement, record it in the public records, and post it on the job site before beginning work on a project.
2. Lienors must serve a notice of owner to the developer and all parties listed on the notice of commencement as a prerequisite to perfecting a lien.
3. The notice to owner must include mandatory language provided by Section 713.06(2)(C), Florida Statutes, and must substantially comply with the statute to be enforceable.
4. If a new notice of commencement is filed, there must also be a new notice to owner.
By keeping these aspects in mind, real estate developers can better navigate Florida’s construction laws and avoid potential legal challenges. 1. After sending the notice to owner, a party may file a claim of lien, which is valid for one year and must contain statutory warning language.
2. The developer has options when a claim of lien is filed, including filing a notice of contest of lien or a notice of bond within 90 days if there is a conditional payment bond.
3. If the developer makes payments to the contractor, they must ensure they receive a release of lien and a progress payment affidavit before making any payments. They should also receive the contractor’s final payment affidavit before making the final payment.
4. Any lienor perfecting a claim of lien may serve a written demand for a written statement under oath showing the current status of payments due. Developer’s failure to comply within thirty (30) days will deprive them of entitlement to an attorney fee award in subsequent litigation on the lien. – Developers may be held liable for implied, express, or statutory warranties in their building contracts.
– Implied warranties for residential buildings include that the residence is merchantable and fit for ordinary purposes, and that the new home was built in substantial compliance with the plans and specifications.
– Claims under FDUTPA may exist if a developer engages in misleading or deceptive advertising or sales practices, causing detriment to the party relying on the representations. – Developers of condominium buildings may be liable for failure to perform as represented in offering prospectus or condominium declaration.
– The reliance on brochures for amenities may be deemed unreasonable if the purchase and sale agreements allow for changes to the renderings.
– Chapter 558, Florida Statutes, applies to developers as it includes “any person that is legally engaged in the business of developing real property.”
– Developers may be subject to a notice under Chapter 558, but failure to comply with the conditions precedent may result in the action being stayed or dismissed. 1. Chapter 558 may benefit developers by providing an opportunity to inspect and cure defects.
2. It allows developers to hold others responsible for alleged construction defects.
3. It establishes procedures for developers to perform testing and obtain discoverable material.
4. It provides a procedure for developers to make offers to repair or pay for alleged defects, leading to potential settlement negotiations.
5. The statute of limitations for construction defect cases in Florida is four years from the date of possession, certificate of occupancy, abandonment, or completion of the contract.
6. For latent defects, the time to file a claim begins when the defect is discovered or should have been discovered, with a cap of ten years imposed by the statute of repose.
7. A party may still potentially bring an action even after the ten-year limitation if there is an issue of material fact regarding the timing of the certificate of occupancy, as seen in the Clearwater Housing Authority v. Future Capital Holding Corp. case. – Developers may be responsible for construction defects in certain cases and need to understand the time limits for filing claims.
– There are nuances and exceptions to Florida construction laws that can affect legal issues for developers.
– It is recommended to seek assistance from a Florida Bar Board Certified Expert in Construction Law if unsure of rights and obligations in a specific circumstance.
https://www.jimersonfirm.com/blog/2015/08/top-five-things-real-estate-developers-should-know-about-floridas-construction-laws/
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