Like other states, Florida allows contractors, sub-contractors and other providers of parts and labor who are involved in the construction industry to file construction liens, which also commonly get referred to as mechanic’s lien.
In theory, construction liens protect providers in the construction industry from customers who refuse to pay after work is done.
In lieu of going through the ordinary debt collection process, a provider with a valid construction lien can force the sale of the property where the provider performed the work.
Indirectly, construction liens also help customers who might otherwise find it difficult to get a contractor to perform without getting paid a large sum up front.
Construction liens present legal issues on both sides
However, both those who earn their living in the construction industry and their customers need to be aware of legal issues surrounding construction liens.
Both should also not hesitate to get advice from an experienced construction attorney if they have questions or concerns.
For example, those in the industry must carefully follow all of the many detailed requirements and deadlines in Florida’s construction lien laws. If they miss any step, then they may lose their right to record or foreclose the lien.
The upshot of forfeiting a construction lien could well be that the provider does not get paid for its work.
On the other land, owners of real estate subject to a construction lien must take the matter seriously.
A construction lien applies, and the holder can force the sale of the property, even if the owner is not at fault for not paying the holder of the lien.
Likewise, a construction lien still has to be addressed even if the provider of the parts and labors did not complete the job or did the work improperly.
