Anyone who works in the construction industry should take some time to thoroughly understand Fla. Stat. § 713.001. Also known as the Construction Lien Law, this statute governs the rights and responsibilities of construction professionals, especially when it comes to ensuring they get compensated for their work. If a client does not pay their construction invoice, they shouldn’t be surprised when a lien is placed on their property.
The list of service providers that may file a mechanic’s lien is many, including architects, engineers, designers, contractors, subcontractors and any other service provider completing work for real property. If you hold one of these roles, read on to learn more about how construction liens in Florida work.
What Happens When You File a Construction Lien?
The purpose of a mechanic’s lien is to help construction professionals recover any owed compensation from homeowners or real property owners. There are restrictions in terms of when you can file a construction lien and the length of its validity so be sure to consult first with a Miami construction attorney to discuss your situation.
When a contractor or other construction professional files a mechanic’s liens, a lien is placed on the property’s title. This goes on public record. It means the construction professional has stake in the property and can force the property’s sale through foreclosure if the owner does not pay for the provided services.
Once a property goes through foreclosure, the lien holder (e.g., the general contractor who filed the lien) is then able to recover the unpaid contract payment via the proceeds of the sale.
A mechanic’s lien provides recourse for construction professionals who do not get paid for their services and is a very effective way to collect on an overdue invoice. If you have questions about mechanic’s liens in Florida or are wondering if you should file one, get in touch with our team at Quintana Law, PA. We are experts in Florida construction law and guide you through the best course of action for your situation.