Mechanic’s liens and condominiums: what to know

| Jun 9, 2020 | Construction Law |

Mechanic’s liens are powerful tools that contractors or suppliers can use to leverage payment. Liens come with several complex issues for both claimant and defendant. When a party files a mechanic’s lien for work performed on a condominium, these issues can become even thornier.

Here, we will examine some of the most pressing issues to consider when filing a mechanic’s lien against condominium properties in Florida.

Common issues with mechanic’s liens against condominiums

These are some common complications that parties may encounter when preparing a mechanic’s lien against one or more condominiums.

  • Filing liens involving multiple units

The law prohibits anyone from bringing a lien against an entire condominium property. The lien must name every individual property owner, not the condominium association. Naming the condo association would be much simpler and faster, but it would needlessly involve property owners who have no involvement in the matter.

  • Multiple title searches

Contractors must perform a title search on each individual condominium on which they worked. In large buildings with multiple units, this is no mean feat.

  • Determining the value of work

In the same vein, contractors filing liens must determine the value of work performed on each unit. It is crucial to keep extensive records of every project. This can make discovery and the filing of the claim as straightforward as possible.

  • Administrative and legal errors

Claimants often inadvertently make miniscule errors that can slow or complicate their lien at great expense. In some cases, it can even invalidate a claim.

Complications with any of these issues can contribute to delayed payments for claimants.

Navigate these issues to avoid complications

To ensure that a lien serves its purpose—that is, to help contractors and suppliers collect payments—it is critical to avoid complications wherever possible. Attorneys who practice real estate law and construction law often work to prevent and resolve lien issues.