At Cotney Construction Law, we understand the fickleness of the construction industry. Working in construction comes with its own set of difficulties especially for lienors. An area of contention for lienors is the unexpected end of a project after investing time and resources into it. Whatever the reason for the project’s termination, as a lienor, it is wise to know what to do when you receive a Notice of Termination.
Record a Claim of Lien
It is important to secure your financial well-being, hence your lien rights. The first thing you should do is contact a Jacksonville construction lawyer to file a claim of lien. It’s crucial you file the lien before the termination date stated in the Notice of Termination. File the claim of lien in the county where the project is located within 90 days of your last services. Within 15 days of filing, a certified copy should be sent to the owner.
Understand the Importance of the Notice of Commencement
Under Florida Construction Lien law, every owner should file a Notice of Commencement. This notice serves as the original document that provides pertinent project information for lienors to file a Notice to Owner. When recording a claim of lien, the Notice of Commencement is vital because the date of its recording serves as a date for liens to attach to. This helps to determine lien priority.
Be Aware of Errors Owners Make
Owners have to follow strict guidelines when filing a Notice of Termination. The mistakes owners make impacts lienors. One error owners make is failing to file a notice in the first place. Another error occurs when owners fail do not obtain a contractor’s final payment affidavit. The affidavit verifies which lienors have been paid in full and which ones, if any, have not been paid. Third, owners that make fraudulent statements in the notice are breaking the law. Last, owners fail to record the notice after construction has been completed and all lienors have been paid.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.