Protect Yourself and Your Investment
By Robert C. Solera, Assistant Administrator - Building Department
and Code Enforcement & Licensing Department Director

Property Owners: Are you planning on starting home construction or a remodeling project? If the answer is yes, please be aware of the following:

According to Florida law, those who work on your property or supply materials, and are not paid-in-full, have a right to enforce their claim for payment against your property. This claim, which used to be called a mechanic’s lien, is now referred to as a construction lien.

If a contractor fails to pay subcontractors or material suppliers, or neglects to make other legally required payments, any person who is owed money may seek for payment against your property, even if you have paid the contractor in full. Furthermore, these people may file a lien against your property and it could be sold against your will to pay for labor, materials, or other services which your contractor may have failed to pay.

If improvements cost more than $2,500.00, Florida’s Construction Lien Law (Florida Statutes Chapter 713, Part One) requires that a Notice of Commencement be recorded with the Clerk of Courts in the county where the property is located. An informational package regarding how to record a Notice of Commencement is available from the Building, Code Enforcement & Licensing Department.

This simple list may help you to protect your and your property:

• Because Florida’s Construction Lien Law is very complex, it is recommended that you consult an attorney before starting a major construction project.

• Verify that your contractor is properly licensed. Contact the City’s Building Department at (305) 947-2150 or lookup any contractor information at www.MyFloridaLicense.com.

The Building Department’s permitting process allows residents to know if a contractor they just hired, or intend to hire, is a certified professional. Please be aware that there isn’t any governmental agency that issues a “handyman” license.

Our State and County agencies issue contractor licenses specific to the type of work that a professional is authorized to perform and each license/certificate will particularly list that information.

In fact, it is your right as a property owner to request proof of such license.

• Record a Notice of Commencement before starting any construction and post a certified copy at the job site. This document makes public your intention to begin improvements or construction. It details important information such as: legal description, property’s physical address, description of improvement, owner’s name and address, lender’s information and payment bond information (if any). This document must be signed by the owner and signed and stamped by a Notary Public. Failure to record a Notice of Commencement or incorrect information on the Notice could result in your paying twice for the same work or materials.

• Making sure that your contractor has secured the necessary building permit(s). Generally, a permit is required for the erection or construction of any structure. Also, permits are required for all additions, reparations, improvements, alterations, and extension or covering of a structure (this includes, but is not limited to, the installation, alteration, and/or reparation of any electrical wiring and electrical equipment, plumbing fixture or water source line, mechanical equipment and any gas supply system). Before starting any improvement or construction check with the Building Department to determine whether or not the work requires a permit.

• Know who is working or supplying materials for improvements on your property. Request from the contractor, via certified mail, a list of all sub-contractors and suppliers who have a contract with the contractor to provide services or materials to your property.

• If your contract calls for it and your contractor requests a partial payment before improvement work is completed, obtain a Partial Release of Lien (to include all workers and material suppliers used to that point). A Partial Release of Lien may protect you from any claims that may later arise for work performed and materials delivered up to that point.

• Before you make a final payment obtain a Notice of Termination (of Notice of Commencement) and make sure that the contractor has obtained Releases of Liens from all subcontractors and suppliers. The Notice of Termination specifically states that all parties (workers and suppliers) have been paid in full.

• If you are borrowing money to pay for the improvements, instruct your lender to obtain releases before making payment directly to a contractor; and if your lender then fails to follow the legal requirements, the lending institution may be responsible for any loss to you. If a release is not issued before your lender has made payment and a claim should arise, then a lien may be imposed on your property for the amount that has not been to a worker or supplier.

Who can claim a lien on a property? Any contractor, laborer, material supplier, subcontractor(s) or any other professional such as a designer, engineer, architect or land surveyor may have the right to file a lien for any services and/or materials rendered.

What can happen if you do not get Releases of Liens? You may not be able to sell your property unless all liens are paid or, in an extreme case, a property owner may be forced to sell his property to satisfy a lien.

Be aware and look for the following warning signs of fly-by-night unlicensed “contractors” who prey on uninformed property owners:

• Request a large “down payment” or request to be paid only in cash or, if by check, they request it be made payable to a person instead of a business;

• Unwilling or unable to give you a written contract;

• Unwilling or unable to show proof of proper licensing or insurance (liability or workmen’s comp.);

• Unwilling or unable to obtain a permit or might be hesitant to apply for a permit;

• Might only work after normal business hours (nights and weekends); and

• Might not display their contractor license number on their vehicles, business cards, contracts or advertisements.

The Building, Code Enforcement & Licensing Department strives to provide excellent customer service to all. However, we also seek to protect our citizens through their improvement process. Therefore, you will now understand why our permit processors require so much information through documentation before we issue a single building permit.

If you want additional information regarding issues covered in this article, or with any other question related to your improvement project, please contact me at (305) 947-2150.

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