Florida – where construction thrives and businesses abound, knowing how to put a lien on a property in Florida can be a powerful tool for securing payment. A lien acts as a legal claim against a property, essentially saying “this property owes me money.” While it doesn’t guarantee immediate repayment, it significantly strengthens your position in recouping what’s due.
But going through the process can feel a bit daunting. Here’s a breakdown to help you understand the steps involved in how to put a lien on a property in Florida.
The first step is recognizing there’s no single answer to how to put a lien on a property in Florida. There are various types of liens, each with its own purpose and procedures. Here are some of the most common:
Mechanic’s Liens (Stats Time!): According to the Florida Construction Lien Law, roughly 100,000 mechanic’s liens are filed in the state annually [Source needed]. These are for contractors, subcontractors, and suppliers who haven’t been paid for their work or materials on a property.
Materialman’s Liens: Closely related to mechanic’s liens, materialman’s liens (statistics unavailable) are for suppliers who haven’t been paid for the materials they furnished for a construction project.
Code Enforcement Liens: If a property owner fails to comply with county code violations, the county can place a lien (around 20,000 are filed statewide each year [Source needed]) to recoup the cost of bringing the property into compliance.
Judgment Liens: Arising from court judgments, these liens (statistics unavailable) allow a creditor to potentially force the sale of a property to satisfy a debt.
Comprehending the “how” of placing a lien on a Florida property is essential. While the general framework may seem straightforward, each step requires careful attention to detail and adherence to specific timelines. Here’s a breakdown of the procedural steps involved in how to put a lien on a property in Florida, complete with crucial considerations:
In most Florida lien scenarios, the law mandates providing written notice to the property owner before filing a lien. This notice, often referred to as a “Preliminary Notice” or a “Notice to Owner,” serves a critical purpose:
Crafting the Notice:
While there’s no single prescribed format, a well-crafted Notice to Owner should typically include the following information:
Delivery Methods: There are generally two acceptable methods for delivering the Notice to Owner:
Timely Delivery is Crucial:
Florida statutes often mandate specific deadlines for delivering the Notice to Owner. These deadlines typically range from 30 days to 45 days before commencing work or furnishing materials, or within a set timeframe after completing the work or providing the materials (often 45 days). Missing these deadlines could jeopardize your ability to file a lien later.
Once the notice period has elapsed and the debt remains unpaid, you can proceed with filing the official lien document. This document, typically referred to as a “Claim of Lien,” formalizes your claim against the property.
The Filing Process:
The process doesn’t stop after filing the Claim of Lien. Florida law mandates that you serve a copy of the filed lien on the property owner within a specific timeframe, often 15 days from the filing date.
When you follow these procedural steps carefully, you will ensure that your lien is valid and enforceable. Remember, even if you follow all the steps correctly, there’s still a possibility that the debt may not be settled immediately. The next section will explore potential next steps if the issue persists.
Successfully filing a lien on a Florida property establishes your legal claim against the owner for unpaid debts. However, a filed lien doesn’t guarantee immediate payment. If the debt remains unsettled after taking the steps outlined previously, here’s a roadmap for how to enforce the lien and potentially recover what’s due:
Before diving headfirst into litigation, consider exploring alternative dispute resolution (ADR) options. These methods can be more cost-effective and time-efficient than lawsuits.
If attempts at resolving the issue amicably are unsuccessful, you might need to resort to legal action to enforce your lien. This typically involves filing a lawsuit in the appropriate court to foreclose on the lien.
The Foreclosure Process:
Assuming the court rules in your favor, a foreclosure judgment will be issued. This judgment allows you to initiate the foreclosure process, which can involve:
Public Sale: The court orders the property to be sold at a public auction. The proceeds from the sale are then used to satisfy your lien, along with any other outstanding liens according to their priority ranking. If the sale generates enough money to cover all liens and associated costs, any remaining funds will be returned to the property owner.
Sheriff’s Deed: Following the public sale, the winning bidder receives a Sheriff’s Deed, essentially transferring ownership of the property.
Important Considerations:
The decision to enforce a lien through legal action shouldn’t be taken lightly. The complexities of foreclosure lawsuits and the potential financial implications necessitate seeking guidance from an experienced attorney. They can assess your individual situation, advise you on the best course of action, and represent your interests throughout the legal process.
By understanding the enforcement options available and the importance of seeking professional legal advice, you can increase your chances of successfully recovering the funds owed through your lien.
In Florida, the concept of “first come, first served” applies to liens. Liens are generally ranked by their recording date with the county clerk’s office. This ranking determines the order in which they’ll be satisfied if the property is sold. A lien recorded earlier has a higher priority and will be paid off before a lien recorded later, regardless of the total amount owed on each lien.
Florida’s generous homestead exemption protects a significant portion of a primary residence’s equity from being seized to satisfy most debts, including liens. The exact amount of exemption varies depending on factors like marital status and disability. This exemption can make enforcing a lien on a homeowner’s primary residence more challenging.
Before commencing construction projects exceeding a specific value (around $2,500 [Source needed]), Florida law mandates filing a Notice of Commencement with the clerk of the circuit court in the county where the project is located. This notice informs potential lienors, like subcontractors and material suppliers, about the project, allowing them to take steps to protect their lien rights by filing a preliminary notice.
Florida enforces strict deadlines for filing liens. Missing these deadlines can have severe consequences. Generally, you have a limited window (often 90 days) to file a Claim of Lien after your work is completed or the materials are furnished. For instance, if you’re a contractor and your project finishes on July 1st, you’d typically need to file your Claim of Lien by September 30th to preserve your lien rights.
The process of how to put a lien on a property in Florida can be complex, and the legal landscape as well. Consulting with an attorney experienced in lien law can ensure you’re following the proper procedures and maximizing your chances of a successful outcome. They can also advise you on the specific requirements for your particular type of lien and the potential costs involved.
So, knowing about the various types of liens, the filing procedures, and the importance of timely action, you’ll be well-equipped to navigate the process of how to put a lien on a property in Florida. Should the situation arise, this knowledge can be a valuable tool in securing the payment you deserve.
Speaking of property, you can always get in touch with us at JMK Property Management if you wish to have your place well-kept (maintained) or if you want us to find a viable tenant for you.
