Page 13 - State Law Summary of Mechanic's Lien Law

Florida FL

What is the statutory authority? When does a mechanic’s lien have to be filed for claimant to maintain
F.S.A. §§ 713.001-713.37; F.S.A. § 255.05; and F.S.A § 337.18 (surety bonds). lien rights?
A claim of lien must be filed in the clerk’s office where the property is located
What is the Attachment Date of the Mechanic’s Lien? no later than 90 days after final furnishing of labor, services or materials. The
The priority of a mechanic’s lien relates back to the date of recording of the Notice only exception is when contract is terminated or contractor abandons project,
of Commencement pursuant to F.S.A. § 713.07. If no notice of commencement is then lienors have 90 days from the date of such termination or 90 days after the
recorded, the mechanic’s lien has priority as of the date of recording. F.S.A. § 713.07. furnishing of labor, services, or materials by the lienor, whichever occurs first.
F.S.A. § 713.08 (4) and (5).
What constitutes visible commencement of construction?
There is no visible commencement rule in Florida. What is the period of enforcement of a filed mechanic’s lien?
The construction claim of lien expires 1 year after the claim of lien is recorded
What is the priority of the insured construction mortgage/ unless another date is specified on the claim of lien or an action to enforce the lien
deed of trust? is commenced within the time period. F.S.A. § 713.22(1).
A mortgage recorded prior to the recording of a notice of commencement or a recorded
mechanic’s lien has priority over a subsequently filed mechanic’s liens. Is there a procedure to bond over the mechanic’s lien(s)?
F.S.A. § 713.07. Any mechanic’s lien may be transferred, by any person having an interest in the
real property upon which the lien is imposed or the contract under which the lien
If priority of the insured mortgage/deed of trust is lost, is there a is claimed, from such real property to other security by:
statutory procedure to regain priority?
No. Priority cannot be “regained” if lost. However, pursuant to F.S.A. § 713.132, a. Depositing in the clerk’s office a sum of money; or
priority can be maintained by properly terminating an existing recorded notice
of commencement and paying all lienors their pro rata share, without ceasing or b. Filing in the clerk’s office a bond executed as surety by a surety insurer licensed
pausing construction. Specifically, F.S.A. § 713.132, provides that: to do business in this state.
(1) An owner may terminate the period of effectiveness of a notice of
commencement by executing, swearing to, and recording a notice of termination In an amount equal to the amount demanded in the claim of lien, plus interest thereon
that contains all of the following: at the legal rate for 3 years, plus $5,000 or 25 percent of the amount demanded in the
(a) The same information that is in the notice of commencement. claim of lien, whichever is greater, to apply on any attorney fees and court costs that
(b) The official records’ reference numbers and recording date affixed by the may be taxed in any proceeding to enforce said lien. See F.S.A. § 713.24.
recording office on the recorded notice of commencement.
(c) A statement of the date as of which the notice of commencement is Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
terminated, which date may not be earlier than 30 days after the notice of No.
termination is recorded.
(d) A statement specifying that the notice applies to all the real property
subject to the notice of commencement or specifying the portion of such
real property to which it applies.
(e) A statement that all lienors have been paid in full.
(f) A statement that the owner has, before recording the notice of termination,
served a copy of the notice of termination on each lienor who has a direct
contract with the owner or who has timely served a notice to owner,
and a statement that the owner will serve a copy of the notice of
termination on each lienor who timely serves a notice to owner after
the notice of termination has been recorded. The owner is not required
to serve a copy of the notice of termination on any lienor who has
executed a waiver and release of lien upon final payment in accordance
with with F.S.A. § 713.20.
(3) An owner may record a notice of termination at any time after all lienors have
been paid in full or pro rata in accordance with F.S.A. § 713.06(4)
(5) The notice of termination upon such lienor, and the termination of the notice
of commencement as to that lienor is effective 30 days after service of the notice
of termination.

Consult State Underwriter for additional Company requirements for insurability
upon termination of notice of commencement with the intent to reset priority.

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