The following is a basic guideline of the necessary steps to preserving a party’s lien rights in Florida:
- Notice of Commencement
If you are working directly for the Owner then you should ensure that the Owner signs and records a Notice of Commencement for the Project. If you are a subcontractor or supplier working on the Project you should request a copy of the Notice of Commencement from the General Contractor. The Notice of Commencement should include all the information necessary to properly prepare a Notice to Owner (if required) and the Claim of Lien.
- Notice to Owner
Any party that is not working directly for the Owner is required to serve a Notice to Owner within 45 days of first furnishing labor or materials. You should serve a copy of the Notice to Owner on every party between you and the Owner.
- Record Claim of Lien
The Claim of Lien must be recorded in the County where the project is located within 90 days from last date of work required under your contract. Warranty or corrective work does not extend your last date of work. The lien should include the total value of work that you completed under your contract including approved change order. You should not include finance charges, legal & recording fees, or other charges that do not benefit the property. The Owner must be served with a copy of the lien within 15 days of recording.
- Final Contractor’s Affidavit
Any contractor working directly for the Owner is required to serve a Final Contractor’s Affidavit at least 5 days prior to filing a lawsuit to enforce its Claim of Lien.
- File Lawsuit to Enforce Claim of Lien
The final step in preserving your lien rights is to file a lawsuit to enforce the Claim of Lien. The lawsuit must be filed within 1 year from the date the claim of lien was recorded unless a notice of contest of lien is filed or the lienor is served with a show cause complaint. If the lienor receives a notice of contest of lien they have 60 days from the date the clerk’s office certified it mailed the notice of contest to file a lawsuit to enforce its claim of lien. If a lienor is a served with a show cause complaint they must file a counterclaim to enforce its claim of lien within 20 days after service of the summons.