Florida Release Of Lien Laws

Before duty begins on your interpretation project prompt a Proceeds of Lien to protect yourself financially.

Though there are many types of liens, Florida's Proceeds of lien laws pertain specifically to interpretation liens, again declared in many states as mechanic's liens. It is a lien placed against corporeal Belongings, such as a central, by a contractor or subcontractor that pledges the Belongings as collateral for fee of the donkeywork that is performed. A Proceeds of lien indemnifies your Belongings against liens that could be placed against it by subcontractors or other contractors whether the proportions of chore exceeds $2,500. Whether grind is performed on your internal for $50,000 and you fee the contractor in complete and he fails to remuneration the subcontractors or other contractors, they can case liens against your Belongings to receive paid. A Proceeds of lien Business agreement signed by you and the contractor prevents you from duration decision-making for his failure to remuneration others.

Complete a Release of Lien Form

Execute a Proceeds of Lien anatomy between yourself and the contractor, any subcontractors and suppliers by having each sign the document before work begins. Obtain the information on each via certified or registered mail from the contractor.

File a Notice of Commencement

File a Notice of Commencement with the Clerk of the Circuit Court in the County where the property is located before any work begins. Also, post at the job site a certified copy of the Notice of Commencement, or a copy of the Notice of Commencement with a document stating that a Notice of Commencement has been recorded.

Don't Make a Final Payment Until Everyone Signs Off on the Job

Obtain an affidavit from the contractor behind of the job that specifies all unpaid subcontractors or other parties who provided services, labor or material for the project. Have the contractor provide you with final releases from all those due money before making final payment.

Obtain a Partial Release of Lien

Obtain a Partial Release of Lien if the contract calls for partial payments as the work proceeds, or if the contract calls for partial payments before the work is completed. Make certain that the partial payment records the work performed and materials used and paid for to that point.