Your business renovation was supposed to be an exciting investment, but the project is unfinished, and the work is poor. To make matters worse, you have just discovered someone has filed a construction lien against your property.
This situation is frustrating for any property owner, as a lien can halt your project, cloud your title and lead to costly legal disputes. Understanding Florida’s Construction Lien Law is the first step to protecting your investment.
What is a construction lien?
When builders, subcontractors or suppliers provide labor or materials for a project and do not receive payment, they can place a legal claim on the property itself. This claim is known as a construction lien.
If you do not resolve the lien, the lienholder can even attempt to foreclose on your property to satisfy the payment.
How can a lien be filed if you paid your contractor?
Even after you have fully paid your main contractor, a serious problem can still arise. If they neglect to pay their own suppliers or subcontractors, these companies can legally place a lien on your property to secure the debt.
This situation could force you to pay for the same work twice to clear your title.
What are the first steps to address a lien?
Act promptly when you receive a notice of a lien, as Florida law imposes strict legal deadlines on these claims.
You should immediately gather all of your project documents, including your contract with the general contractor and any proof of payment. There are many potential defenses to an improper lien, and a careful review of your situation is necessary.
Protecting your property investment
The best way to handle a construction lien is to prevent it from happening. A well drafted construction contract with clear payment terms and requirements for lien waivers is your strongest protection.
If you are facing a lien or another complex real estate litigation matter, consider speaking with an experienced attorney to understand your rights and legal options.