As Orlando construction lawyers, we know that working in the construction industry can be risky business. Lack of payments and liens have become a source of frustration for owners and lienors alike. Failing to pay your contractors, or your contractor’s failure to pay their workers can lead to a construction lien on your property. It’s a trickle down effect you’ll want to avoid. This leads us to the importance of filing a Notice of Commencement. This notice is the first step in Florida’s Construction Lien law process. Read Part 2 of our article to learn more.
What is a Notice of Commencement?
When making improvements on a property that exceed $2500, filing a Notice of Commencement is one of the ways to protect yourself. The Notice of Commencement is a legal document that makes a project’s commencement known. In accordance with Chapter 713, of the Florida Statutes, it should provide detailed information to everyone working on a project. Be sure to provide the following information:
- Legal description of the property and complete address
- A description of what improvements will be made to the property
- Owner’s name and address
- If different from the owner, the identifying information of the fee simple titleholder
- The contractor’s information
- The surety’s information (including bond amount)
- The lender’s information
- Identifying information of the owner’s representative
- The Notice of Commencement expiration date
- Appropriate signatures
This information is vital because workers that provide labor and materials for the project rely on the information in the notice to file a Notice to Owner (also known as a preliminary notice) to secure their lien rights. Failing to provide complete and detailed information in the notice is a costly mistake.
The notice must be filed before a project begins, but no more than 90 days before a project begins. However, failing to begin the project within 30 days of recording the notice voids it.
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.