If you are a lienor and have received a Notice of Termination, you must act quickly to preserve the priority of your lien for amounts owed. In this article, our Florida construction attorneys have provided some advice to help you handle a Notice of Termination properly.
Advice for Lienors When Dealing with a Notice of Termination
After receiving a Notice of Termination, you must act quickly to ensure your lien receives priority based on the original Notice of Commencement. Promptly prepare and record a claim of lien in the county where the project is located within 90 days of your last services. This must be done prior to the termination date of the Notice of Termination to ensure that your lien relates back to the recording of the original Notice of Commencement. This will ensure that the lien trumps any future encumbrance on the property.
Recording the Notice of Commencement
Under Florida Statute 713.3, owners are required to record a Notice of Commencement in the public records of the project’s location before starting construction or restarting the completion of a project. The notice should contain information such as:
- A legal description of the property to be improved (including street address and tax folio number of the property).
- A general description of the improvement.
- The owner’s name, address, interest in the site of the improvement, and the name and address of the fee simple titleholder.
- The contractor’s name, address, and telephone number.
- The surety’s name, address, telephone, and amount of bond.
- The lender’s name, address, and telephone.
- The name and address (within the same state) of a person designated to be served notices or other documents (information must also be included in the Notice of Commencement).
- The name and address of an additional designee to receive a copy of the lienor’s notice (information must also be included in the Notice of Commencement).
- The expiration date of the Notice of Commencement (one year from the date of recording).
Know Your Rights and the Owner’s Responsibilities
Liens are complicated, and any missed deadline can jeopardize your lien rights. Not only should lienors know their rights and responsibilities, but they should also know that owners must follow strict guidelines as well. Owners must record the Notice of Commencement before starting construction. In fact, it is necessary for obtaining a building permit. As a lienor, you have the right to file a claim for damages against the owner for errors or fraudulent statements made in the Notice of Termination.
A Florida construction attorney can assist you with filing a claim of lien to ensure that you file the lien before the termination date stated in the Notice of Termination.
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.