Payton & Associates, LLC
Commercial Litigation Attorneys
Miami, Florida
786-574-4943

What needs to be contained in a lien claim on real property?

In a very short period of time, a successful business project can suddenly become a disaster, leaving multiple Miami businesses trying to sort the mess out. For instance, a construction project that appears promising and profitable can quickly fall apart due to any number of factors.

Last week, this blog discussed how the anticipated slowdown in the local real estate market over the upcoming year could spell problems in the construction industry. In these cases, companies should be aware of their legal rights, including what they can do to collect compensation for their share of work in a construction project.

For example, when subcontractor has performed labor or provided materials for a construction project, the subcontractor may be able to file a construction lien when payment has not been made. Under Florida law, those who perform services or furnish materials have rights to a lien on real property, provided they follow the statutory requirements.

Those with lien rights need to provide proper notice, for instance, and record a claim of lien that meets certain requirements. The claim of lien typically must state the name and address of the lienor, the name of the person who the lienor contracted with, the labor or materials that was provided and the value of that labor or materials, a description of the property that is at issue and the owner of the property. The claim must also list the time when the first and last item of labor of materials was furnished, as well as the amount that remains unpaid.

There are strict time requirements that apply for filing a construction lien. There are also time limitations that may apply if a lienor wishes to foreclose on the construction lien, which is often done in addition to a legal claim for a breach of construction contract. Accordingly, those who have lien rights need to ensure they meet all of the statutory requirements in order to protect and enforce their lien.

Source: Florida Legislature, "Chapter 713: Liens, Generally," accessed on Feb. 13, 2016

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