Are you a property owner or contractor in Florida? If so, it’s essential that you understand the importance of a mechanics lien. According to Section 713.001-713.37 of the Florida Statutes a mechanics lien sometimes called a “construction lien” is a legal claim on a home or property by a contractor or another who has provided labor or materials to the property and has not been paid.  In this comprehensive guide, we’ll delve into what mechanic’s liens are, how they work, and how they can impact property owners. 

HOW DO MECHANICS LIENS WORK IN FLORIDA? 

A mechanic’s lien functions by placing a legal hold on one’s home or property when a service has been provided but has not been compensated for. The purpose of the lien is to provide security interest to those who perform a service in the event they do not receive payment. A mechanic’s lien is a powerful tool that contractors can use to ensure they are paid for the services they provide to the property owner. 

WHO CAN FILE A MECHANICS LIEN? 

Under Section 713.015 of the Florida Statutes, anyone with a direct contract exceeding $2,500 and who performs or makes improvements to the property can file a mechanic’s lien when they have not been compensated. Typically, contractors, subcontractors, and laborers have lien rights should the owner fail to pay. 

HOW IS A MECHANICS LIEN FILED? 

For a mechanic’s lien to be filed the following steps need to be taken. 

• Notice – When creating a contract with a property owner, the contractor must include a provision in the contract to inform the owner that if they are not paid in full the have a right to file a mechanics lien on the property. 

• Claim – If a contractor or subcontractor has not been paid by the property owner for the work completed, they may then file a mechanics lien claim. The lien must be filed and completed following the specifications found under Section 713.08(3) of the Florida Statutes.  Once completed the claim must be filed with the clerk of courts and notice must be given to the owner.  

• Action – In the event a property owner fails to pay the contractor or subcontractor and a mechanic’s lien has already been filed. A court may order a foreclosure on the property owners’ home to satisfy the unpaid debt to the contractors and subcontractors. 

WHAT IS THE IMPACT ON PROPERTY OWNERS? 

For property owners, a mechanic’s lien can be a scary thing. They can lead to the following:  

• A lien on the property can affect the property owner’s ability to sell or refinance the property.  

• A lien on the property can lead to a forced sale of the property disregarding the owner’s consent. This may even occur when a contractor is paid but they fail to pay the subcontractors, those subcontractors may still file a lien against the property.  

• It may also lead to significant delays in any property transactions the owner may have. As well as legal costs which can be costly and time-consuming. 

HOW TO PROTECT AGAINST MECHANICS LIENS 

Property owners can take several measures to protect against mechanics liens. These are:  

• Obtaining title insurance – to provide coverage against losses due to mechanics liens. 

• Lien waiver in the contract – require waivers for subcontractors and suppliers once paid. 

• Research the contractors – ensure the contractor has a good track record of paying suppliers and subcontractors.  

• Keep track – Ensure payments are being made on time and to all parties.   

CONSULT OUR LAWYERS 

In the event you are facing a mechanics lien on your property, it is advisable to seek legal counsel from a lawyer to guide you through the process. Our team of knowledgeable contract lawyers can help you assess the enforceability of the agreement, analyze the evidence, and advise you on the appropriate course of action. 

For all your contract questions and needs, please contact RAK Law Firm online or at (407) 437-0319. 

 Call us today to schedule a consultation.