| 1 | A bill to be entitled |
| 2 | An act relating to construction bonds; amending s. 255.05, |
| 3 | F.S.; requiring that a surety record in the public records |
| 4 | a payment bond for a public works construction project; |
| 5 | requiring that the bond number be stated on the first page |
| 6 | of a bond; prohibiting the issuing authority for a |
| 7 | building permit or a private provider providing inspection |
| 8 | services from inspecting the property being improved until |
| 9 | the occurrence of certain events; providing that a payment |
| 10 | and performance bond is not required for certain |
| 11 | contracts; authorizing certain entities to exempt certain |
| 12 | contracts from the requirement for a payment and |
| 13 | performance bond; requiring that the clerk of court serve |
| 14 | a notice of contest of lien; amending s. 713.015, F.S.; |
| 15 | requiring that a contractor provide an owner with a |
| 16 | general statement of an owner's rights and |
| 17 | responsibilities under Florida's Construction Lien Law; |
| 18 | requiring that a signed copy of the statement be filed |
| 19 | with the building permit application; specifying the form |
| 20 | and content of the statement; deleting the requirement |
| 21 | that notice be included in the direct contract between the |
| 22 | contractor and the owner; amending s. 713.06, F.S.; |
| 23 | revising the form of a notice for liens of persons not in |
| 24 | privity; amending s. 713.09, F.S.; including units in |
| 25 | provisions relating to a single claim of lien; deleting |
| 26 | certain requirements relating to direct contracts; |
| 27 | amending s. 713.13, F.S.; providing for the expiration of |
| 28 | a notice of commencement; revising the form of a notice of |
| 29 | commencement; requiring the posting of a payment bond on a |
| 30 | job site; amending s. 713.135, F.S.; revising the warning |
| 31 | to the owner printed on certain permit cards; deleting a |
| 32 | requirement relating to the filing of a notice of |
| 33 | commencement before certain inspections; revising the |
| 34 | warning to the owner provided on a building permit form; |
| 35 | deleting provisions requiring the authority issuing a |
| 36 | building permit to provide certain statements and |
| 37 | information; creating s. 713.137, F.S.; prohibiting the |
| 38 | authority issuing a building permit or a private provider |
| 39 | providing inspection services from inspecting an |
| 40 | improvement until certain documents have been filed and |
| 41 | the information in the notice of commencement meets |
| 42 | certain standards; providing exceptions; amending s. |
| 43 | 713.16, F.S.; revising requirements for demands for a copy |
| 44 | of a construction contract and a statement of account; |
| 45 | authorizing a lienor who submits or mails a claim of lien |
| 46 | to the clerk for recording to make certain demands to an |
| 47 | owner for certain written statements; providing |
| 48 | requirements for such written demands; amending s. 713.18, |
| 49 | F.S.; providing additional methods by which certain items |
| 50 | may be served by mail; specifying information required on |
| 51 | certain written instruments under certain circumstances; |
| 52 | amending s. 713.22, F.S.; requiring that the clerk of |
| 53 | court serve a notice of contest of lien; amending s. |
| 54 | 713.23, F.S.; requiring that the clerk of court serve a |
| 55 | notice of contest of nonpayment; conforming cross- |
| 56 | references; amending s. 713.24, F.S.; requiring that the |
| 57 | clerk of court serve a copy of the certificate showing the |
| 58 | transfer of a lien and a copy of the security if the lien |
| 59 | is transferred to a security; providing an effective date. |
| 60 |
|
| 61 | Be It Enacted by the Legislature of the State of Florida: |
| 62 |
|
| 63 | Section 1. Subsection (1) and paragraph (a) of subsection |
| 64 | (2) of section 255.05, Florida Statutes, are amended to read: |
| 65 | 255.05 Bond of contractor constructing public buildings; |
| 66 | form; action by materialmen.- |
| 67 | (1)(a) Any person entering into a formal contract with the |
| 68 | state or any county, municipality city, or political subdivision |
| 69 | thereof, or other public authority or private entity, for the |
| 70 | construction of a public building, for the prosecution and |
| 71 | completion of a public work, or for repairs upon a public |
| 72 | building or public work shall be required, before commencing the |
| 73 | work or before recommencing the work after a default or |
| 74 | abandonment, to execute and, deliver to the public owner, and |
| 75 | record in the public records of the county where the improvement |
| 76 | is located, a payment and performance bond with a surety insurer |
| 77 | authorized to do business in this state as surety. |
| 78 | (a) A public entity may not require a contractor to secure |
| 79 | a surety bond under this section from a specific agent or |
| 80 | bonding company. |
| 81 | (b) The bond must state on its front page: the name, |
| 82 | principal business address, and phone number of the contractor, |
| 83 | the surety, the owner of the property being improved, and, if |
| 84 | different from the owner, the contracting public entity; the |
| 85 | contract number assigned by the contracting public entity; the |
| 86 | bond number assigned by the surety; and a description of the |
| 87 | project sufficient to identify it, such as a legal description |
| 88 | or the street address of the property being improved, and a |
| 89 | general description of the improvement. |
| 90 | (c) Such bond shall be conditioned upon the contractor's |
| 91 | performance of the construction work in the time and manner |
| 92 | prescribed in the contract and promptly making payments to all |
| 93 | persons defined in s. 713.01 who furnish labor, services, or |
| 94 | materials for the prosecution of the work provided for in the |
| 95 | contract. |
| 96 | (d) The contractor shall, upon issuance, record the |
| 97 | payment bond in the public records of the county in which the |
| 98 | improvement will be located. |
| 99 | (e)1. The issuing authority for the building permit, or a |
| 100 | private provider providing inspection services, may not inspect |
| 101 | the property being improved until: |
| 102 | a. The issuing authority has a copy of the contractor's |
| 103 | recorded payment bond on file; or |
| 104 | b. The contracting public entity has filed with the |
| 105 | issuing authority a notarized statement stating that the |
| 106 | contract is exempt from the requirement for a payment bond as |
| 107 | provided in this section. |
| 108 | 2. This paragraph does not apply to inspections for the |
| 109 | installation of temporary electrical service or other temporary |
| 110 | utility service, land clearing, or other preliminary site work. |
| 111 | (f) Any claimant may apply to the governmental entity |
| 112 | having charge of the work for copies of the contract and bond |
| 113 | and shall thereupon be furnished with a certified copy of the |
| 114 | contract and bond. The claimant has shall have a right of action |
| 115 | against the contractor and surety for the amount due him or her, |
| 116 | including unpaid finance charges due under the claimant's |
| 117 | contract. Such action shall not involve the public authority in |
| 118 | any expense. |
| 119 | (g)1. A payment and performance bond is not required for a |
| 120 | contract with the state for $100,000 or less. When such work is |
| 121 | done for the state and the contract is for $100,000 or less, no |
| 122 | payment and performance bond shall be required. |
| 123 | 2. At the discretion of The official or board awarding a |
| 124 | such contract when such work is done for a any county, |
| 125 | municipality city, political subdivision, or public authority |
| 126 | may exempt a contract, any person entering into such a contract |
| 127 | which is for $200,000 or less from the requirement for a may be |
| 128 | exempted from executing the payment and performance bond. |
| 129 | 3. When such work is done for the state, The Secretary of |
| 130 | Management Services may delegate to a state agency agencies the |
| 131 | authority to exempt any person entering into such a contract for |
| 132 | amounting to more than $100,000 but less than $200,000 from the |
| 133 | requirement for a executing the payment and performance bond. If |
| 134 | In the event such exemption is granted, the officer or officials |
| 135 | are shall not be personally liable to persons suffering loss |
| 136 | because of granting such exemption. The Department of Management |
| 137 | Services shall maintain information on the number of requests by |
| 138 | state agencies for delegation of authority to waive the bond |
| 139 | requirements by agency and project number and whether any |
| 140 | request for delegation was denied and the justification for the |
| 141 | denial. |
| 142 | (h) Any provision in a payment bond furnished for public |
| 143 | work contracts as provided by this subsection which restricts |
| 144 | the classes of persons as defined in s. 713.01 protected by the |
| 145 | bond or the venue of any proceeding relating to such bond is |
| 146 | unenforceable. |
| 147 | (i)(b) The Department of Management Services shall adopt |
| 148 | rules with respect to all contracts for $200,000 or less, to |
| 149 | provide: |
| 150 | 1. Procedures for retaining up to 10 percent of each |
| 151 | request for payment submitted by a contractor and procedures for |
| 152 | determining disbursements from the amount retained on a pro rata |
| 153 | basis to laborers, materialmen, and subcontractors, as defined |
| 154 | in s. 713.01. |
| 155 | 2. Procedures for requiring certification from laborers, |
| 156 | materialmen, and subcontractors, as defined in s. 713.01, prior |
| 157 | to final payment to the contractor that such laborers, |
| 158 | materialmen, and subcontractors have no claims against the |
| 159 | contractor resulting from the completion of the work provided |
| 160 | for in the contract. |
| 161 |
|
| 162 | The state is shall not be held liable to any laborer, |
| 163 | materialman, or subcontractor for any amounts greater than the |
| 164 | pro rata share as determined under this section. |
| 165 | (j)(c)1. The amount of the bond shall equal the contract |
| 166 | price, except that for a contract in excess of $250 million, if |
| 167 | the state, county, municipality, political subdivision, or other |
| 168 | public entity finds that a bond in the amount of the contract |
| 169 | price is not reasonably available, the public owner shall set |
| 170 | the amount of the bond at the largest amount reasonably |
| 171 | available, but not less than $250 million. |
| 172 | 2. For construction-management or design-build contracts, |
| 173 | if the public owner does not include in the bond amount the cost |
| 174 | of design or other nonconstruction services, the bond may not be |
| 175 | conditioned on performance of such services or payment to |
| 176 | persons furnishing such services. Notwithstanding paragraph (h) |
| 177 | (a), such a bond may exclude persons furnishing such services |
| 178 | from the classes of persons protected by the bond. |
| 179 | (2)(a)1. If a claimant is no longer furnishing labor, |
| 180 | services, or materials on a project, a contractor or the |
| 181 | contractor's agent or attorney may elect to shorten the |
| 182 | prescribed time in this paragraph within which an action to |
| 183 | enforce any claim against a payment bond must provided pursuant |
| 184 | to this section may be commenced by recording in the clerk's |
| 185 | office a notice in substantially the following form: |
| 186 |
|
| 187 | NOTICE OF CONTEST OF CLAIM |
| 188 | AGAINST PAYMENT BOND |
| 189 |
|
| 190 | To: ...(Name and address of claimant)... |
| 191 |
|
| 192 | You are notified that the undersigned contests your notice |
| 193 | of nonpayment, dated _______________, __________, and served on |
| 194 | the undersigned on _______________, __________, and that the |
| 195 | time within which you may file suit to enforce your claim is |
| 196 | limited to 60 days after the date of service of this notice. |
| 197 | DATED on _______________, __________. |
| 198 |
|
| 199 | Signed:...(Contractor or Attorney)... |
| 200 |
|
| 201 | The claim of any claimant upon whom such notice is served and |
| 202 | who fails to institute a suit to enforce his or her claim |
| 203 | against the payment bond within 60 days after service of such |
| 204 | notice shall be extinguished automatically. The clerk shall |
| 205 | serve mail a copy of the notice of contest to the claimant at |
| 206 | the address shown in the notice of nonpayment or most recent |
| 207 | amendment thereto and shall certify to such service on the face |
| 208 | of such notice and record the notice. Service is complete upon |
| 209 | mailing. |
| 210 | 2. A claimant, except a laborer, who is not in privity |
| 211 | with the contractor shall, before commencing or not later than |
| 212 | 45 days after commencing to furnish labor, services, or |
| 213 | materials for the prosecution of the work, furnish the |
| 214 | contractor with a written notice that he or she intends to look |
| 215 | to the bond for protection. A claimant who is not in privity |
| 216 | with the contractor and who has not received payment for his or |
| 217 | her labor, services, or materials shall deliver to the |
| 218 | contractor and to the surety written notice of the performance |
| 219 | of the labor or delivery of the materials or supplies and of the |
| 220 | nonpayment. The notice of nonpayment may be served at any time |
| 221 | during the progress of the work or thereafter but not before 45 |
| 222 | days after the first furnishing of labor, services, or |
| 223 | materials, and not later than 90 days after the final furnishing |
| 224 | of the labor, services, or materials by the claimant or, with |
| 225 | respect to rental equipment, not later than 90 days after the |
| 226 | date that the rental equipment was last on the job site |
| 227 | available for use. Any notice of nonpayment served by a claimant |
| 228 | who is not in privity with the contractor which includes sums |
| 229 | for retainage must specify the portion of the amount claimed for |
| 230 | retainage. An No action for the labor, materials, or supplies |
| 231 | may not be instituted against the contractor or the surety |
| 232 | unless both notices have been given. Notices required or |
| 233 | permitted under this section may be served in accordance with s. |
| 234 | 713.18. A claimant may not waive in advance his or her right to |
| 235 | bring an action under the bond against the surety. In any action |
| 236 | brought to enforce a claim against a payment bond under this |
| 237 | section, the prevailing party is entitled to recover a |
| 238 | reasonable fee for the services of his or her attorney for trial |
| 239 | and appeal or for arbitration, in an amount to be determined by |
| 240 | the court, which fee must be taxed as part of the prevailing |
| 241 | party's costs, as allowed in equitable actions. The time periods |
| 242 | for service of a notice of nonpayment or for bringing an action |
| 243 | against a contractor or a surety shall be measured from the last |
| 244 | day of furnishing labor, services, or materials by the claimant |
| 245 | and shall not be measured by other standards, such as the |
| 246 | issuance of a certificate of occupancy or the issuance of a |
| 247 | certificate of substantial completion. |
| 248 | Section 2. Section 713.015, Florida Statutes, is amended |
| 249 | to read: |
| 250 | 713.015 General statement of owner's rights and |
| 251 | responsibilities Mandatory provisions for direct contracts.- |
| 252 | (1) For any direct contract greater than $2,500 between an |
| 253 | owner and a contractor, related to improvements to real property |
| 254 | consisting of single or multiple family dwellings up to and |
| 255 | including four units, the contractor must provide the owner with |
| 256 | a copy of the signed and dated general statement of an owner's |
| 257 | rights and responsibilities under Florida's Construction Lien |
| 258 | Law as described in subsection (2), which must be contain the |
| 259 | following notice provision printed in no less than 12-point, |
| 260 | capitalized, boldfaced type on the front page of the contract or |
| 261 | on a separate page, signed by the owner and dated, and submitted |
| 262 | with the original building permit application pursuant to s. |
| 263 | 713.135. If the contractor applies for the building permit, the |
| 264 | contractor must provide to the owner a signed and dated copy of |
| 265 | the general statement of an owner's rights and |
| 266 | responsibilities.: |
| 267 | (2) The general statement of an owner's rights and |
| 268 | responsibilities under Florida's Construction Lien Law must be |
| 269 | in substantially the following form, must include the |
| 270 | information contained in the following form, and must include a |
| 271 | copy of a notice of commencement as provided in s. 713.13(1), a |
| 272 | waiver and release of lien upon progress payment as provided in |
| 273 | s. 713.20(4), a waiver and release of lien upon final payment as |
| 274 | provided in s. 713.20(5), a request for sworn statement of |
| 275 | account as provided in s. 713.16, and a contractor's final |
| 276 | payment affidavit as provided in s. 713.06(3): |
| 277 |
|
| 278 | GENERAL STATEMENT OF |
| 279 | OWNER'S RIGHTS AND RESPONSIBILITIES |
| 280 | UNDER FLORIDA'S CONSTRUCTION LIEN LAW |
| 281 |
|
| 282 | ABOUT THIS DOCUMENT.-Florida law requires your contractor |
| 283 | to provide you with this document and the attached statutory |
| 284 | forms when you are contracting to make improvements to real |
| 285 | property. Therefore, it is critical that you have some |
| 286 | understanding of Florida's construction lien and payment laws |
| 287 | and take appropriate steps to protect your investment and |
| 288 | fulfill your obligations to those who provide labor and |
| 289 | materials for your project. |
| 290 |
|
| 291 | You must acknowledge that you have received and read this |
| 292 | document by signing on the signature page. The signed original |
| 293 | document must be delivered to the building permit authority, |
| 294 | along with the building permit application for your project. |
| 295 | Your building permit application will not be processed unless |
| 296 | this signed document is in the file. You need to retain a copy |
| 297 | of the filed document and the attached statutory forms so that |
| 298 | you can follow the procedures described in the document and |
| 299 | identify the proper statutory forms as you proceed with your |
| 300 | construction project. If your contractor applies for the |
| 301 | building permit, he or she must provide you with a copy of the |
| 302 | signed and dated general statement of an owner's rights and |
| 303 | responsibilities. |
| 304 |
|
| 305 | THE FLORIDA CONSTRUCTION LIEN LAW.-Part I of chapter 713, |
| 306 | Florida Statutes (F.S.), governs private construction projects |
| 307 | in this state. The complete text of this law can be found at |
| 308 | www.leg.state.fl.us. This general statement is intended as a |
| 309 | guide and does not take precedence over the language of |
| 310 | Florida's Construction Lien Law. |
| 311 |
|
| 312 | Under this law, those who work on your property or provide |
| 313 | materials and services and who are not paid in full have a right |
| 314 | to enforce their claim for payment against your property. This |
| 315 | claim is known as a construction lien. If your contractor or a |
| 316 | subcontractor fails to pay subcontractors, sub-subcontractors, |
| 317 | or material suppliers, those people who are owed money may look |
| 318 | to your property for payment even if you have already paid your |
| 319 | contractor in full. If you fail to pay your contractor, your |
| 320 | contractor may also have a lien on your property. This means |
| 321 | that if a lien is filed, your property could be sold against |
| 322 | your will to pay for labor, materials, or other services that |
| 323 | your contractor or a subcontractor may have failed to pay. |
| 324 |
|
| 325 | The law also provides procedures to protect owners and |
| 326 | guarantee that you will never have to pay more than the amount |
| 327 | of your contract if you make proper payments. Although the |
| 328 | construction lien law has many complexities, the steps owners |
| 329 | can take to protect themselves and establish a "proper payment |
| 330 | defense" are simple, but very important. |
| 331 |
|
| 332 | STEP 1 - THE NOTICE OF COMMENCEMENT.-An owner is required |
| 333 | by law to complete, sign, and record in the public records an |
| 334 | accurate Notice of Commencement for all direct contracts that |
| 335 | exceed $2,500, which notice provides certain specified |
| 336 | information. The information provided in the recorded Notice of |
| 337 | Commencement is relied upon by all parties who provide labor and |
| 338 | materials to your project. A copy of the statutory Notice of |
| 339 | Commencement form, s. 713.13, F.S., is attached to this |
| 340 | document. |
| 341 |
|
| 342 | If a lender is financing your project, the lender will |
| 343 | assist you in completing the Notice of Commencement and is |
| 344 | responsible for recording it in the public records. It is |
| 345 | critical that your Notice of Commencement be recorded after any |
| 346 | construction loan or mortgage documents are recorded. If you do |
| 347 | not have a lender, preparing and recording the Notice of |
| 348 | Commencement is your responsibility. The Notice of Commencement |
| 349 | must be recorded before commencing construction and posted on |
| 350 | your jobsite. For most projects, a copy of the recorded Notice |
| 351 | of Commencement must be submitted to the building permit |
| 352 | authority before the first building inspection. |
| 353 |
|
| 354 | STEP 2 - MONITOR THE DOCUMENTS AND NOTICES YOU RECEIVE.- |
| 355 | Pick up your certified mail. Most lien notices are served by |
| 356 | certified mail and you need to know who is providing labor and |
| 357 | materials to your project. Section 713.18, F.S., provides that |
| 358 | any properly addressed notices that are returned to the sender |
| 359 | through no fault of the sender are considered served on the date |
| 360 | sent, so failing to claim certified mail only hurts you. |
| 361 |
|
| 362 | If you expect to be absent for periods of time during your |
| 363 | project, you should have an attorney or other agent in a |
| 364 | position of trust who understands the law handle these details |
| 365 | for you. Make sure someone is receiving your mail and taking |
| 366 | steps to obtain the necessary lien releases before making |
| 367 | payments to your contractor. If you receive anything that you do |
| 368 | not understand, seek the assistance of an experienced |
| 369 | construction law attorney. |
| 370 |
|
| 371 | STEP 3 - OBTAIN SIGNED LIEN WAIVERS EACH TIME YOU MAKE A |
| 372 | PAYMENT TO YOUR CONTRACTOR.-Each time you pay your contractor |
| 373 | you should obtain a Waiver and Release of Lien form from the |
| 374 | contractor and from anyone who serves you with a Notice to |
| 375 | Owner. Make sure that each release waives lien rights against |
| 376 | your project for work or materials furnished through the date of |
| 377 | the work or materials that your payment covers. This date is |
| 378 | probably not the date you are making the payment, but a date |
| 379 | before the payment date through which labor and materials have |
| 380 | been billed. |
| 381 |
|
| 382 | UNDER FLORIDA LAW, YOU HAVE THE RIGHT TO WITHHOLD PAYMENTS |
| 383 | DUE TO THE CONTRACTOR UNTIL YOU HAVE BEEN PROVIDED WITH A |
| 384 | WRITTEN WAIVER AND RELEASE OF LIEN UPON PROGRESS PAYMENT FORM OR |
| 385 | A WRITTEN WAIVER AND RELEASE OF LIEN UPON FINAL PAYMENT FORM |
| 386 | SHOWING THAT THE LIENOR'S CLAIM FOR PAYMENT HAS BEEN PAID. |
| 387 |
|
| 388 | There are two statutory Waiver and Release of Lien forms. |
| 389 | The signed Waiver and Release of Lien Upon Progress Payment |
| 390 | should be submitted by a contractor, subcontractor, or material |
| 391 | supplier each time you make a payment to your contractor. The |
| 392 | signed Waiver and Release of Lien Upon Final Payment should be |
| 393 | submitted by your contractor, a subcontractor, or material |
| 394 | supplier when they are finished furnishing all work or materials |
| 395 | for your project and have received final payment. For example, |
| 396 | when the plumber finishes all plumbing on your project and |
| 397 | receives final payment from the contractor, you should obtain a |
| 398 | Waiver and Release of Lien Upon Final Payment. Once you receive |
| 399 | a final waiver from a contractor, subcontractor, or material |
| 400 | supplier, you should not need another waiver unless they are |
| 401 | hired to do additional work. A copy of both statutory Waiver and |
| 402 | Release of Lien forms, s. 713.20, F.S., is attached to this |
| 403 | document. |
| 404 |
|
| 405 | STEP 4 - OBTAIN A CONTRACTOR'S FINAL PAYMENT AFFIDAVIT |
| 406 | BEFORE YOU MAKE FINAL PAYMENT TO YOUR CONTRACTOR.-In addition to |
| 407 | obtaining Final Waiver and Release of Lien forms from the |
| 408 | contractor and anyone who has served you with a Notice to Owner, |
| 409 | you should obtain a Contractor's Final Payment Affidavit before |
| 410 | you make final payment to your contractor. This sworn affidavit |
| 411 | should reflect that everyone who supplied labor and materials on |
| 412 | your project has been paid in full or should list those |
| 413 | subcontractors and suppliers who are still owed money. Make sure |
| 414 | that anyone listed as not being paid in full is paid before |
| 415 | making final payment to your contractor. You have a right to |
| 416 | rely on the information contained in the sworn affidavit when |
| 417 | you make final payment to your contractor with respect to any |
| 418 | lienor who has not served a Notice to Owner. A copy of the |
| 419 | statutory Contractor's Final Payment Affidavit form, s. 713.06, |
| 420 | F.S., is attached to this document. |
| 421 |
|
| 422 | IF YOU FOLLOW THESE FOUR SIMPLE STEPS, FLORIDA LAW WILL |
| 423 | PROTECT YOU AND YOU SHOULD NEVER HAVE TO PAY TWICE FOR THE SAME |
| 424 | LABOR OR MATERIALS. |
| 425 |
|
| 426 | ADDITIONAL INFORMATION FOR YOUR PROTECTION |
| 427 |
|
| 428 | 1. Always hire a Florida-licensed contractor. You can |
| 429 | verify the license status of your contractor by accessing the |
| 430 | website of the Department of Business and Professional |
| 431 | Regulation at www.myflorida.com/dbpr and performing a licensee |
| 432 | search. You can check under an individual name or, if your |
| 433 | contractor is a company, under the business name and then check |
| 434 | to see who the qualifying licensee is for that company. |
| 435 |
|
| 436 | 2. Make sure that your contractor has the proper workers' |
| 437 | compensation coverage, or an allowed workers' compensation |
| 438 | exemption, and carries sufficient builder's risk or commercial |
| 439 | liability insurance. The contractor should be able to provide |
| 440 | you with current, valid certificates of insurance from his or |
| 441 | her insurance agent. |
| 442 |
|
| 443 | 3. Use caution before accepting an obviously low bid. If |
| 444 | it seems too good to be true, it probably is, and your |
| 445 | construction project may be in trouble before you even begin. |
| 446 |
|
| 447 | 4. Some contractors require a reasonable deposit to cover |
| 448 | the cost of plans and permitting. This is an acceptable |
| 449 | practice. However, you should use caution before paying |
| 450 | substantial sums to a contractor in advance of the work being |
| 451 | performed. |
| 452 |
|
| 453 | 5. At any time during the construction process if you need |
| 454 | contract or payment information from anyone providing labor, |
| 455 | services, or materials to your project, you have the right to |
| 456 | make a written request to them for a Sworn Statement of Account |
| 457 | to ascertain the nature of the work performed or to be |
| 458 | performed, the materials furnished or to be furnished, the |
| 459 | amounts paid or to be paid, or the amounts due or to become due |
| 460 | to them. The form for this written Request for Sworn Statement |
| 461 | of Account is attached to this statement. If you received a |
| 462 | Notice to Owner from the person to whom you wish to send such a |
| 463 | request, make sure you address the request to the person, |
| 464 | company, and address listed in the Notice to Owner. The request |
| 465 | must be served by you in accordance with lien law provisions |
| 466 | (usually by hand delivery, certified mail, or overnight |
| 467 | delivery) and you should make sure to request and keep the proof |
| 468 | of delivery. |
| 469 |
|
| 470 | 6. If you receive documents or information that you do not |
| 471 | understand, consult an experienced construction law attorney. |
| 472 |
|
| 473 | 7. Florida has a Homeowners' Construction Recovery Fund |
| 474 | that is funded through a portion of the building permit fees. |
| 475 | This fund helps consumers who have been harmed by a licensed |
| 476 | contractor. In order to be eligible to recover from this fund, |
| 477 | you must have complied with the proper payment procedures as |
| 478 | described in this document. For more information, contact the |
| 479 | Construction Industry Licensing Board at |
| 480 | www.myflorida.com/dbpr/pro/cilb. |
| 481 |
|
| 482 | 8. You have the right to require that a contractor furnish |
| 483 | a payment bond so that the owner is exempt from the Construction |
| 484 | Lien Law. If there is a payment bond, a lienor must file a claim |
| 485 | on the payment bond for payment rather than file a lien on the |
| 486 | property. However, if you require a payment bond, understand |
| 487 | that the payment bond will likely increase the cost of your |
| 488 | construction. |
| 489 |
|
| 490 | OWNER'S ACKNOWLEDGMENT AND RECEIPT |
| 491 |
|
| 492 | The undersigned owner(s) of Florida real property hereby |
| 493 | acknowledge that they are preparing to enter into a contract |
| 494 | with _____________________________________________for the |
| 495 | construction of real property improvements to the following- |
| 496 | described property ...(insert address or legal description)...: |
| 497 |
|
| 498 | _________________________________________ |
| 499 |
|
| 500 | _________________________________________ |
| 501 |
|
| 502 | ...(Signature of Property Owner)......(Date)... |
| 503 |
|
| 504 | ...(Signature of Property Owner)......(Date)... |
| 505 |
|
| 506 | Attached Statutory Forms: |
| 507 | Notice of Commencement |
| 508 | Waiver and Release of Lien Upon Progress Payment |
| 509 | Waiver and Release of Lien Upon Final Payment |
| 510 | Request for Sworn Statement of Account |
| 511 | Contractor's Final Payment Affidavit |
| 512 |
|
| 513 | ACCORDING TO FLORIDA'S CONSTRUCTION LIEN LAW (SECTIONS 713.001- |
| 514 | 713.37, FLORIDA STATUTES), THOSE WHO WORK ON YOUR PROPERTY OR |
| 515 | PROVIDE MATERIALS AND SERVICES AND ARE NOT PAID IN FULL HAVE A |
| 516 | RIGHT TO ENFORCE THEIR CLAIM FOR PAYMENT AGAINST YOUR PROPERTY. |
| 517 | THIS CLAIM IS KNOWN AS A CONSTRUCTION LIEN. IF YOUR CONTRACTOR |
| 518 | OR A SUBCONTRACTOR FAILS TO PAY SUBCONTRACTORS, SUB- |
| 519 | SUBCONTRACTORS, OR MATERIAL SUPPLIERS, THOSE PEOPLE WHO ARE OWED |
| 520 | MONEY MAY LOOK TO YOUR PROPERTY FOR PAYMENT, EVEN IF YOU HAVE |
| 521 | ALREADY PAID YOUR CONTRACTOR IN FULL. IF YOU FAIL TO PAY YOUR |
| 522 | CONTRACTOR, YOUR CONTRACTOR MAY ALSO HAVE A LIEN ON YOUR |
| 523 | PROPERTY. THIS MEANS IF A LIEN IS FILED YOUR PROPERTY COULD BE |
| 524 | SOLD AGAINST YOUR WILL TO PAY FOR LABOR, MATERIALS, OR OTHER |
| 525 | SERVICES THAT YOUR CONTRACTOR OR A SUBCONTRACTOR MAY HAVE FAILED |
| 526 | TO PAY. TO PROTECT YOURSELF, YOU SHOULD STIPULATE IN THIS |
| 527 | CONTRACT THAT BEFORE ANY PAYMENT IS MADE, YOUR CONTRACTOR IS |
| 528 | REQUIRED TO PROVIDE YOU WITH A WRITTEN RELEASE OF LIEN FROM ANY |
| 529 | PERSON OR COMPANY THAT HAS PROVIDED TO YOU A "NOTICE TO OWNER." |
| 530 | FLORIDA'S CONSTRUCTION LIEN LAW IS COMPLEX, AND IT IS |
| 531 | RECOMMENDED THAT YOU CONSULT AN ATTORNEY. |
| 532 | (2)(a) If the contract is written, the notice must be in |
| 533 | the contract document. If the contract is oral or implied, the |
| 534 | notice must be provided in a document referencing the contract. |
| 535 | (3)(b) The failure to provide such written notice does not |
| 536 | bar the enforcement of a lien against a person who has not been |
| 537 | adversely affected. |
| 538 | (4)(c) This section may not be construed to adversely |
| 539 | affect the lien and bond rights of lienors who are not in |
| 540 | privity with the owner. This section does not apply when the |
| 541 | owner is a contractor licensed under chapter 489 or is a person |
| 542 | who created parcels or offers parcels for sale or lease in the |
| 543 | ordinary course of business. |
| 544 | Section 3. Paragraph (c) of subsection (2) of section |
| 545 | 713.06, Florida Statutes, is amended to read: |
| 546 | 713.06 Liens of persons not in privity; proper payments.- |
| 547 | (2) |
| 548 | (c) The notice may be in substantially the following form |
| 549 | and must include the information and the warning contained in |
| 550 | the following form: |
| 551 |
|
| 552 | WARNING! FLORIDA'S CONSTRUCTION LIEN LAW ALLOWS SOME |
| 553 | UNPAID CONTRACTORS, SUBCONTRACTORS, AND MATERIAL |
| 554 | SUPPLIERS TO FILE LIENS AGAINST YOUR PROPERTY EVEN IF |
| 555 | YOU HAVE MADE PAYMENT IN FULL. |
| 556 |
|
| 557 | UNDER FLORIDA LAW, YOUR FAILURE TO MAKE SURE THAT WE ARE PAID |
| 558 | MAY RESULT IN A LIEN AGAINST YOUR PROPERTY AND YOUR PAYING |
| 559 | TWICE. |
| 560 |
|
| 561 | TO PROTECT YOURSELF, EACH TIME YOU MAKE A PAYMENT TO THE |
| 562 | CONTRACTOR, ASK YOUR CONTRACTOR TO PROVIDE YOU WITH A WRITTEN |
| 563 | WAIVER AND RELEASE OF LIEN FROM US. FOR ADDITIONAL INFORMATION, |
| 564 | REFER TO THE GENERAL STATEMENT OF OWNER'S RIGHTS AND |
| 565 | RESPONSIBILITIES WHICH WAS PROVIDED TO YOU BY YOUR CONTRACTOR AT |
| 566 | THE BEGINNING OF YOUR CONSTRUCTION PROJECT. AVOID A LIEN AND |
| 567 | PAYING TWICE, YOU MUST OBTAIN A WRITTEN RELEASE FROM US EVERY |
| 568 | TIME YOU PAY YOUR CONTRACTOR. |
| 569 |
|
| 570 | NOTICE TO OWNER |
| 571 |
|
| 572 | To ...(Owner's name and address)... |
| 573 |
|
| 574 | The undersigned hereby informs you that he or she has furnished |
| 575 | or is furnishing services or materials as follows: |
| 576 |
|
| 577 | ...(General description of services or materials)... for the |
| 578 | improvement of the real property identified as ...(property |
| 579 | description)... under an order given by_______________. |
| 580 |
|
| 581 | Florida law prescribes the serving of this notice and restricts |
| 582 | your right to make payments under your contract in accordance |
| 583 | with Section 713.06, Florida Statutes. |
| 584 |
|
| 585 | IMPORTANT INFORMATION FOR |
| 586 | YOUR PROTECTION |
| 587 |
|
| 588 | Under Florida's laws, those who work on your property or |
| 589 | provide materials and are not paid have a right to enforce their |
| 590 | claim for payment against your property. This claim is known as |
| 591 | a construction lien. |
| 592 | If your contractor fails to pay subcontractors or material |
| 593 | suppliers or neglects to make other legally required payments, |
| 594 | the people who are owed money may look to your property for |
| 595 | payment, EVEN IF YOU HAVE PAID YOUR CONTRACTOR IN FULL. |
| 596 |
|
| 597 | PROTECT YOURSELF: |
| 598 | -RECOGNIZE that this Notice to Owner may result in a lien |
| 599 | against your property unless all those supplying a Notice to |
| 600 | Owner have been paid. |
| 601 | -LEARN more about the Construction Lien Law, Chapter 713, |
| 602 | Part I, Florida Statutes, and the meaning of this notice by |
| 603 | contacting an attorney or the Florida Department of Business and |
| 604 | Professional Regulation. |
| 605 | ...(Lienor's Signature)... |
| 606 | ...(Lienor's Name)... |
| 607 | ...(Lienor's Address)... |
| 608 |
|
| 609 | Copies to: ...(Those persons listed in Section 713.06(2)(a) and |
| 610 | (b), Florida Statutes)... |
| 611 |
|
| 612 | The form may be combined with a notice to contractor given under |
| 613 | s. 255.05 or s. 713.23 and, if so, may be entitled "NOTICE TO |
| 614 | OWNER/NOTICE TO CONTRACTOR." |
| 615 | Section 4. Section 713.09, Florida Statutes, is amended to |
| 616 | read: |
| 617 | 713.09 Single claim of lien.-A lienor may is required to |
| 618 | record only one claim of lien covering his or her entire demand |
| 619 | against the real property when the amount demanded is for labor |
| 620 | or services or material furnished for more than one improvement |
| 621 | under the same direct contract. The single claim of lien is |
| 622 | sufficient even though the improvement is for one or more |
| 623 | improvements located on separate lots, parcels, units, or tracts |
| 624 | of land. If materials to be used on one or more improvements on |
| 625 | separate lots, parcels, units, or tracts of land under one |
| 626 | direct contract are delivered by a lienor to a place designated |
| 627 | by the person with whom the materialman contracted, other than |
| 628 | the site of the improvement, the delivery to the place |
| 629 | designated is prima facie evidence of delivery to the site of |
| 630 | the improvement and incorporation in the improvement. The single |
| 631 | claim of lien may be limited to a part of multiple lots, |
| 632 | parcels, or tracts of land and their improvements or may cover |
| 633 | all of the lots, parcels, units, or tracts of land and |
| 634 | improvements. In each claim of lien under this section, the |
| 635 | owner under the direct contract must be the same person for all |
| 636 | lots, parcels, or tracts of land against which a single claim of |
| 637 | lien is recorded. |
| 638 | Section 5. Section 713.13, Florida Statutes, is amended to |
| 639 | read: |
| 640 | 713.13 Notice of commencement.- |
| 641 | (1)(a) Except for an improvement that is exempt pursuant |
| 642 | to s. 713.02(5), an owner or the owner's authorized agent before |
| 643 | actually commencing to improve any real property, or |
| 644 | recommencing completion of any improvement after default or |
| 645 | abandonment, whether or not a project has a payment bond |
| 646 | complying with s. 713.23, shall record a notice of commencement |
| 647 | in the clerk's office and forthwith post either a certified copy |
| 648 | thereof or a notarized statement that the notice of commencement |
| 649 | has been filed for recording along with a copy thereof. The |
| 650 | notice of commencement shall contain the following information: |
| 651 | 1. A description sufficient for identification of the real |
| 652 | property to be improved. The description should include the |
| 653 | legal description of the property and also should include the |
| 654 | street address and tax folio number of the property if available |
| 655 | or, if there is no street address available, such additional |
| 656 | information as will describe the physical location of the real |
| 657 | property to be improved. |
| 658 | 2. A general description of the improvement. |
| 659 | 3. The name and address of the owner, the owner's interest |
| 660 | in the site of the improvement, and the name and address of the |
| 661 | fee simple titleholder, if other than such owner. |
| 662 | 4. The name and address of the contractor. |
| 663 | 5. The name and address of the surety on the payment bond |
| 664 | under s. 713.23, if any, and the amount of such bond. |
| 665 | 6. The name and address of any person making a loan for |
| 666 | the construction of the improvements. |
| 667 | 7. The name and address within the state of a person other |
| 668 | than himself or herself who may be designated by the owner as |
| 669 | the person upon whom notices or other documents may be served |
| 670 | under this part; and service upon the person so designated |
| 671 | constitutes service upon the owner. |
| 672 | (b) The owner, at his or her option, may designate a |
| 673 | person in addition to himself or herself to receive a copy of |
| 674 | the lienor's notice as provided in s. 713.06(2)(b), and if he or |
| 675 | she does so, the name and address of such person must be |
| 676 | included in the notice of commencement. |
| 677 | (c) A notice of commencement expires: |
| 678 | 1. Ninety days after the day of the final furnishing of |
| 679 | all labor, services, and materials required by the direct |
| 680 | contract, including any change orders; or |
| 681 | 2. On the effective date of a notice of termination that |
| 682 | has been served and recorded. If the contract between the owner |
| 683 | and a contractor named in the notice of commencement expresses a |
| 684 | period of time for completion for the construction of the |
| 685 | improvement greater than 1 year, the notice of commencement must |
| 686 | state that it is effective for a period of 1 year plus any |
| 687 | additional period of time. Any payments made by the owner after |
| 688 | the expiration of the notice of commencement are considered |
| 689 | improper payments. |
| 690 | (d) A notice of commencement must be in substantially the |
| 691 | following form: |
| 692 |
|
| 693 | Permit No._____ Tax Folio No._____ |
| 694 | NOTICE OF COMMENCEMENT |
| 695 | State of_____ |
| 696 | County of_____ |
| 697 |
|
| 698 | The undersigned hereby gives notice that improvement will be |
| 699 | made to certain real property, and in accordance with Chapter |
| 700 | 713, Florida Statutes, the following information is provided in |
| 701 | this Notice of Commencement. |
| 702 | 1. Description of property: ...(legal description of the |
| 703 | property, and street address if available).... |
| 704 | 2. General description of improvement:_____. |
| 705 | 3. Owner information:_____. |
| 706 | a. Name and address:_____. |
| 707 | b. Interest in property:_____. |
| 708 | c. Name and address of fee simple titleholder (if other |
| 709 | than Owner):_____. |
| 710 | 4.a. Contractor: ...(name and address).... |
| 711 | b. Contractor's phone number:_____. |
| 712 | 5. Surety ...(a copy of the payment bond is attached, if |
| 713 | the project is bonded).... |
| 714 | a. Name and address:_____. |
| 715 | b. Phone number:_____. |
| 716 | c. Amount of bond: $_____. |
| 717 | 6.a. Lender: ...(name and address).... |
| 718 | b. Lender's phone number:_____. |
| 719 | 7.a. Persons within the State of Florida designated by |
| 720 | Owner upon whom notices or other documents may be served as |
| 721 | provided by Section 713.13(1)(a)7., Florida Statutes: ...(name |
| 722 | and address).... |
| 723 | b. Phone numbers of designated persons:_____. |
| 724 | 8.a. In addition to himself or herself, Owner designates |
| 725 | _______________ of _______________ to receive a copy of the |
| 726 | Lienor's Notice as provided in Section 713.13(1)(b), Florida |
| 727 | Statutes. |
| 728 | b. Phone number of person or entity designated by |
| 729 | owner:_____. |
| 730 | 9. This notice of commencement expires 90 days after the |
| 731 | day of the final furnishing of all labor, services, and |
| 732 | materials required by the direct contract, including any change |
| 733 | orders, or on the effective date of a notice of termination. |
| 734 | Expiration date of notice of commencement (the expiration date |
| 735 | is 1 year from the date of recording unless a different date is |
| 736 | specified)_____. |
| 737 |
|
| 738 | WARNING TO OWNER: ANY PAYMENTS MADE BY THE OWNER AFTER THE |
| 739 | EXPIRATION OF THE NOTICE OF COMMENCEMENT ARE CONSIDERED IMPROPER |
| 740 | PAYMENTS UNDER CHAPTER 713, PART I, SECTION 713.13, FLORIDA |
| 741 | STATUTES, AND CAN RESULT IN YOUR PAYING TWICE FOR IMPROVEMENTS |
| 742 | TO YOUR PROPERTY. A NOTICE OF COMMENCEMENT MUST BE RECORDED AND |
| 743 | POSTED ON THE JOB SITE BEFORE THE FIRST INSPECTION. IF YOU |
| 744 | INTEND TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER OR AN |
| 745 | ATTORNEY BEFORE COMMENCING WORK OR RECORDING YOUR NOTICE OF |
| 746 | COMMENCEMENT. |
| 747 |
|
| 748 | Under penalty of perjury, I declare that I have read the |
| 749 | foregoing notice of commencement and that the facts stated |
| 750 | therein are true to the best of my knowledge and belief. |
| 751 |
|
| 752 | ...(Signature of Owner or Owner's Authorized |
| 753 | Officer/Director/Partner/Manager)... |
| 754 |
|
| 755 | ...(Signatory's Title/Office)... |
| 756 |
|
| 757 | The foregoing instrument was acknowledged before me this _____ |
| 758 | day of _____, ...(year)..., by ...(name of person)... as |
| 759 | ...(type of authority, . . . e.g. officer, trustee, attorney in |
| 760 | fact)... for ...(name of party on behalf of whom instrument was |
| 761 | executed).... |
| 762 |
|
| 763 | ...(Signature of Notary Public - State of Florida)... |
| 764 |
|
| 765 | ...(Print, Type, or Stamp Commissioned Name of Notary Public)... |
| 766 |
|
| 767 | Personally Known _____ OR Produced Identification _____ |
| 768 |
|
| 769 | Type of Identification Produced_______________ |
| 770 | |
| 771 | Verification pursuant to Section 92.525, Florida Statutes. |
| 772 | |
| 773 | Under penalties of perjury, I declare that I have read the |
| 774 | foregoing and that the facts stated in it are true to the best |
| 775 | of my knowledge and belief. |
| 776 | |
| 777 | ...(Signature of Natural Person Signing Above)... |
| 778 | (e) A copy of any payment bond must be attached at the |
| 779 | time of recordation of the notice of commencement. The failure |
| 780 | to attach a copy of the bond to the notice of commencement when |
| 781 | the notice is recorded negates the exemption provided in s. |
| 782 | 713.02(6). However, if a payment bond under s. 713.23 exists but |
| 783 | was not attached at the time of recordation of the notice of |
| 784 | commencement, the bond may be used to transfer any recorded lien |
| 785 | of a lienor except that of the contractor by the recordation and |
| 786 | service of a notice of bond pursuant to s. 713.23(2). The notice |
| 787 | requirements of s. 713.23 apply to any claim against the bond; |
| 788 | however, the time limits for serving any required notices shall |
| 789 | begin running from the later of the time specified in s. 713.23 |
| 790 | or the date the notice of bond is served on the lienor. |
| 791 | (f) The giving of a notice of commencement is effective |
| 792 | upon the filing of the notice in the clerk's office. |
| 793 | (g) The owner must sign the notice of commencement and no |
| 794 | one else may be permitted to sign in his or her stead. |
| 795 | (2) If the improvement described in the notice of |
| 796 | commencement is not actually commenced within 90 days after the |
| 797 | recording thereof, such notice is void and of no further effect. |
| 798 | (2)(3) The recording of a notice of commencement does not |
| 799 | constitute a lien, cloud, or encumbrance on real property, but |
| 800 | gives constructive notice that claims of lien under this part |
| 801 | may be recorded and may take priority as provided in s. 713.07. |
| 802 | The posting of a copy does not constitute a lien, cloud, or |
| 803 | encumbrance on real property, nor actual or constructive notice |
| 804 | of any of them. |
| 805 | (3)(4) This section does not apply to an owner who is |
| 806 | constructing improvements described in s. 713.04. |
| 807 | (4)(5)(a) A notice of commencement that is recorded within |
| 808 | the effective period may be amended to extend the effective |
| 809 | period, change erroneous information in the original notice, or |
| 810 | add information that was omitted from the original notice. |
| 811 | However, in order to change contractors, a new notice of |
| 812 | commencement or notice of recommencement must be executed and |
| 813 | recorded. |
| 814 | (b) The amended notice must identify the official records |
| 815 | book and page where the original notice of commencement is |
| 816 | recorded, and a copy of the amended notice must be served by the |
| 817 | owner upon the contractor and each lienor who serves notice |
| 818 | before or within 30 days after the date the amended notice is |
| 819 | recorded. |
| 820 | (5)(6) Unless otherwise provided in the notice of |
| 821 | commencement or a new or amended notice of commencement, A |
| 822 | notice of commencement is not effectual in law or equity against |
| 823 | a conveyance, transfer, or mortgage of or lien on the real |
| 824 | property described in the notice, or against creditors or |
| 825 | subsequent purchasers for a valuable consideration, after the |
| 826 | expiration of 1 year after the date of recording the notice of |
| 827 | commencement. |
| 828 | (6)(7) A lender must, prior to the disbursement of any |
| 829 | construction funds to the contractor, record the notice of |
| 830 | commencement in the clerk's office as required by this section; |
| 831 | however, the lender is not required to post a certified copy of |
| 832 | the notice at the construction site. The posting of the notice |
| 833 | at the construction site remains the owner's obligation. The |
| 834 | failure of a lender to record the notice of commencement as |
| 835 | required by this subsection renders the lender liable to the |
| 836 | owner for all damages sustained by the owner as a result of the |
| 837 | failure. Whenever a lender is required to record a notice of |
| 838 | commencement, the lender shall designate the lender, in addition |
| 839 | to others, to receive copies of notices to owner. This |
| 840 | subsection does not give any person other than the owner a claim |
| 841 | or right of action against a lender for failure to record a |
| 842 | notice of commencement. |
| 843 | Section 6. Section 713.135, Florida Statutes, is amended |
| 844 | to read: |
| 845 | 713.135 Notice of commencement and applicability of lien.- |
| 846 | (1) When any person applies for a building permit, the |
| 847 | authority issuing such permit shall: |
| 848 | (a) Require the applicant to submit the signed and dated |
| 849 | general statement of an owner's rights and responsibilities |
| 850 | under Florida's Construction Lien Law as provided in s. 713.015 |
| 851 | for any single-family or multifamily dwelling up to and |
| 852 | including four units. A building permit application may not be |
| 853 | processed unless the signed document is in the file. |
| 854 | (b)(a) Print on the face of each permit card in no less |
| 855 | than 14-point, capitalized, boldfaced type: "WARNING TO OWNER: |
| 856 | IF YOU FAIL YOUR FAILURE TO RECORD A NOTICE OF COMMENCEMENT, YOU |
| 857 | MAY PAY RESULT IN YOUR PAYING TWICE FOR IMPROVEMENTS TO YOUR |
| 858 | PROPERTY. A NOTICE OF COMMENCEMENT, AND THE CONTRACTOR'S PAYMENT |
| 859 | BOND IF THE PROJECT IS BONDED, MUST BE RECORDED AND POSTED ON |
| 860 | THE JOB SITE BEFORE THE FIRST INSPECTION. IF YOU INTEND TO |
| 861 | OBTAIN FINANCING, CONSULT WITH YOUR LENDER OR AN ATTORNEY BEFORE |
| 862 | RECORDING YOUR NOTICE OF COMMENCEMENT." |
| 863 | (c)(b) Make available to Provide the applicant and the |
| 864 | owner of the real property upon which improvements are to be |
| 865 | constructed copies of the general statement of an owner's rights |
| 866 | and responsibilities under Florida's with a printed statement |
| 867 | stating that the right, title, and interest of the person who |
| 868 | has contracted for the improvement may be subject to attachment |
| 869 | under the Construction Lien Law as described in s. 713.015 with |
| 870 | the attached statutory forms. The issuing authority may make the |
| 871 | general statement and forms available in printed form, on the |
| 872 | Internet, or both. The Department of Business and Professional |
| 873 | Regulation shall furnish, for distribution, the statement |
| 874 | described in this paragraph, and the statement must be a summary |
| 875 | of the Construction Lien Law and must include an explanation of |
| 876 | the provisions of the Construction Lien Law relating to the |
| 877 | recording, and the posting of copies, of notices of commencement |
| 878 | and a statement encouraging the owner to record a notice of |
| 879 | commencement and post a copy of the notice of commencement in |
| 880 | accordance with s. 713.13. The statement must also contain an |
| 881 | explanation of the owner's rights if a lienor fails to furnish |
| 882 | the owner with a notice as provided in s. 713.06(2) and an |
| 883 | explanation of the owner's rights as provided in s. 713.22. The |
| 884 | authority that issues the building permit must obtain from the |
| 885 | Department of Business and Professional Regulation the statement |
| 886 | required by this paragraph and must mail, deliver by electronic |
| 887 | mail or other electronic format or facsimile, or personally |
| 888 | deliver that statement to the owner or, in a case in which the |
| 889 | owner is required to personally appear to obtain the permit, |
| 890 | provide that statement to any owner making improvements to real |
| 891 | property consisting of a single or multiple family dwelling up |
| 892 | to and including four units. However, the failure by the |
| 893 | authorities to provide the summary does not subject the issuing |
| 894 | authority to liability. |
| 895 | (c) In addition to providing the owner with the statement |
| 896 | as required by paragraph (b), inform each applicant who is not |
| 897 | the person whose right, title, and interest is subject to |
| 898 | attachment that, as a condition to the issuance of a building |
| 899 | permit, the applicant must promise in good faith that the |
| 900 | statement will be delivered to the person whose property is |
| 901 | subject to attachment. |
| 902 | (d) Furnish to the applicant two or more copies of a form |
| 903 | of notice of commencement conforming with s. 713.13. If the |
| 904 | direct contract is greater than $2,500, the applicant shall file |
| 905 | with the issuing authority prior to the first inspection either |
| 906 | a certified copy of the recorded notice of commencement or a |
| 907 | notarized statement that the notice of commencement has been |
| 908 | filed for recording, along with a copy thereof. In the absence |
| 909 | of the filing of a certified copy of the recorded notice of |
| 910 | commencement, the issuing authority or a private provider |
| 911 | performing inspection services may not perform or approve |
| 912 | subsequent inspections until the applicant files by mail, |
| 913 | facsimile, hand delivery, or any other means such certified copy |
| 914 | with the issuing authority. The certified copy of the notice of |
| 915 | commencement must contain the name and address of the owner, the |
| 916 | name and address of the contractor, and the location or address |
| 917 | of the property being improved. The issuing authority shall |
| 918 | (d) Verify that the name and address of the owner, the |
| 919 | name of the contractor, and the location or address of the |
| 920 | property being improved which is contained in the certified copy |
| 921 | of the notice of commencement is consistent with the information |
| 922 | in the building permit application. |
| 923 | (e) Provide the recording information from the official |
| 924 | public records in which the notice of commencement and payment |
| 925 | bond, if any, are recorded to any person upon request. The |
| 926 | issuing authority shall provide the recording information on the |
| 927 | certified copy of the recorded notice of commencement to any |
| 928 | person upon request. This subsection does not require the |
| 929 | recording of a notice of commencement prior to the issuance of a |
| 930 | building permit. If a local government requires a separate |
| 931 | permit or inspection for installation of temporary electrical |
| 932 | service or other temporary utility service, land clearing, or |
| 933 | other preliminary site work, such permits may be issued and such |
| 934 | inspections may be conducted without providing the issuing |
| 935 | authority with a certified copy of a recorded notice of |
| 936 | commencement or a notarized statement regarding a recorded |
| 937 | notice of commencement. This subsection does not apply to a |
| 938 | direct contract to repair or replace an existing heating or air- |
| 939 | conditioning system in an amount less than $7,500. |
| 940 | (f)(e) Not require that a notice of commencement be |
| 941 | recorded as a condition of the application for, or processing or |
| 942 | issuance of, a building permit. However, this paragraph does not |
| 943 | modify or waive the inspection requirements set forth in this |
| 944 | subsection. |
| 945 | (2) An issuing authority under subsection (1) is not |
| 946 | liable in any civil action for the failure of the person whose |
| 947 | property is subject to attachment to receive or to be delivered |
| 948 | the general statement of an owner's rights and responsibilities |
| 949 | under Florida's a printed statement stating that the right, |
| 950 | title, and interest of the person who has contracted for the |
| 951 | improvement may be subject to attachment under the Construction |
| 952 | Lien Law as provided in s. 713.015. |
| 953 | (3) An issuing authority under subsection (1) is not |
| 954 | liable in any civil action for the failure to verify that a |
| 955 | certified copy of the recorded notice of commencement has been |
| 956 | filed in accordance with this section. |
| 957 | (4) The several boards of county commissioners, municipal |
| 958 | councils, or other similar bodies may by ordinance or resolution |
| 959 | establish reasonable fees for furnishing, upon request, copies |
| 960 | of the forms and the printed statement provided in paragraph |
| 961 | (1)(a) paragraphs (1)(b) and (d) in an amount not to exceed $5 |
| 962 | to be paid by the applicant for each permit in addition to all |
| 963 | other costs of the permit; however, no forms or statement need |
| 964 | be furnished, mailed, or otherwise provided to, nor may such |
| 965 | additional fee be obtained from, applicants for permits in those |
| 966 | cases in which the owner of a legal or equitable interest |
| 967 | (including that of ownership of stock of a corporate landowner) |
| 968 | of the real property to be improved is engaged in the business |
| 969 | of construction of buildings for sale to others and intends to |
| 970 | make the improvements authorized by the permit on the property |
| 971 | and upon completion will offer the improved real property for |
| 972 | sale. |
| 973 | (5) In addition to any other information required by the |
| 974 | authority issuing the permit, each building permit application |
| 975 | must contain: |
| 976 | (a) The name and address of the owner of the real |
| 977 | property; |
| 978 | (b) The name and address of the contractor; |
| 979 | (c) A description sufficient to identify the real property |
| 980 | to be improved; and |
| 981 | (d) The number or identifying symbol assigned to the |
| 982 | building permit by the issuing authority, which number or symbol |
| 983 | must be affixed to the application by the issuing authority. |
| 984 | (6)(a) In addition to any other information required by |
| 985 | the authority issuing the permit, the building permit |
| 986 | application must be in substantially the following form: |
| 987 |
|
| 988 | Tax Folio No.__________ |
| 989 | BUILDING PERMIT APPLICATION |
| 990 |
|
| 991 | Owner's Name___________________________ |
| 992 | Owner's Address___________________________ |
| 993 | Fee Simple Titleholder's Name (If other than |
| 994 | owner)___________________________ |
| 995 | Fee Simple Titleholder's Address (If other than |
| 996 | owner)___________________________ |
| 997 | City___________________________ |
| 998 | State_______________ Zip_______________ |
| 999 | Contractor's Name___________________________ |
| 1000 | Contractor's Address___________________________ |
| 1001 | City___________________________ |
| 1002 | State_______________ Zip_______________ |
| 1003 | Job Name___________________________ |
| 1004 | Job Address___________________________ |
| 1005 | City____________________ County_______________ |
| 1006 | Legal Description___________________________ |
| 1007 | Bonding Company___________________________ |
| 1008 | Bonding Company Address___________________________ |
| 1009 | City____________________ State_______________ |
| 1010 | Architect/Engineer's Name___________________________ |
| 1011 | Architect/Engineer's Address___________________________ |
| 1012 | Mortgage Lender's Name___________________________ |
| 1013 | Mortgage Lender's Address___________________________ |
| 1014 |
|
| 1015 | Application is hereby made to obtain a permit to do the |
| 1016 | work and installations as indicated. I certify that no work or |
| 1017 | installation has commenced prior to the issuance of a permit and |
| 1018 | that all work will be performed to meet the standards of all |
| 1019 | laws regulating construction in this jurisdiction. I understand |
| 1020 | that a separate permit must be secured for ELECTRICAL WORK, |
| 1021 | PLUMBING, SIGNS, WELLS, POOLS, FURNACES, BOILERS, HEATERS, |
| 1022 | TANKS, and AIR CONDITIONERS, etc. |
| 1023 |
|
| 1024 | OWNER'S AFFIDAVIT: I certify that all the foregoing |
| 1025 | information is accurate and that all work will be done in |
| 1026 | compliance with all applicable laws regulating construction and |
| 1027 | zoning. |
| 1028 |
|
| 1029 | WARNING TO OWNER: IF YOU FAIL YOUR FAILURE TO RECORD A |
| 1030 | NOTICE OF COMMENCEMENT, YOU MAY PAY RESULT IN YOUR PAYING TWICE |
| 1031 | FOR IMPROVEMENTS TO YOUR PROPERTY. A NOTICE OF COMMENCEMENT, AND |
| 1032 | THE CONTRACTOR'S PAYMENT BOND IF THE PROJECT IS BONDED, MUST BE |
| 1033 | RECORDED AND POSTED ON THE JOB SITE BEFORE THE FIRST INSPECTION. |
| 1034 |
|
| 1035 | IF YOU INTEND TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER |
| 1036 | OR AN ATTORNEY BEFORE COMMENCING WORK OR RECORDING YOUR NOTICE |
| 1037 | OF COMMENCEMENT. |
| 1038 |
|
| 1039 | ...(Signature of Owner or Agent)... |
| 1040 | ...(including contractor)... |
| 1041 | STATE OF FLORIDA |
| 1042 | COUNTY OF _____ |
| 1043 |
|
| 1044 | Sworn to (or affirmed) and subscribed before me this _____ |
| 1045 | day of _____, ...(year)..., by ...(name of person making |
| 1046 | statement).... |
| 1047 |
|
| 1048 | ...(Signature of Notary Public - State of Florida)... |
| 1049 |
|
| 1050 | ...(Print, Type, or Stamp Commissioned Name of Notary Public)... |
| 1051 |
|
| 1052 | Personally Known _____ OR Produced Identification _____ |
| 1053 |
|
| 1054 | Type of Identification Produced_______________ |
| 1055 |
|
| 1056 | ...(Signature of Contractor)... |
| 1057 |
|
| 1058 | STATE OF FLORIDA |
| 1059 | COUNTY OF _____ |
| 1060 |
|
| 1061 | Sworn to (or affirmed) and subscribed before me this _____ |
| 1062 | day of _____, ...(year)..., by ...(name of person making |
| 1063 | statement).... |
| 1064 |
|
| 1065 | ...(Signature of Notary Public - State of Florida)... |
| 1066 |
|
| 1067 | ...(Print, Type, or Stamp Commissioned Name of Notary Public)... |
| 1068 |
|
| 1069 | Personally Known _____ OR Produced Identification _____ |
| 1070 |
|
| 1071 | Type of Identification Produced_______________ |
| 1072 |
|
| 1073 | (Certificate of Competency Holder) |
| 1074 |
|
| 1075 | Contractor's State Certification or Registration No._____ |
| 1076 |
|
| 1077 | Contractor's Certificate of Competency No.__________ |
| 1078 |
|
| 1079 | APPLICATION APPROVED BY |
| 1080 | ____________________Permit Officer |
| 1081 | (b) Consistent with the requirements of paragraph (a), an |
| 1082 | authority responsible for issuing building permits under this |
| 1083 | section may accept a building permit application in an |
| 1084 | electronic format, as prescribed by the authority. Building |
| 1085 | permit applications submitted to the authority electronically |
| 1086 | must contain the following additional statement in lieu of the |
| 1087 | requirement in paragraph (a) that a signed, sworn, and notarized |
| 1088 | signature of the owner or agent and the contractor be part of |
| 1089 | the owner's affidavit: |
| 1090 |
|
| 1091 | OWNER'S ELECTRONIC SUBMISSION STATEMENT: Under penalty of |
| 1092 | perjury, I declare that all the information contained in this |
| 1093 | building permit application is true and correct. |
| 1094 | (c) An authority responsible for issuing building permit |
| 1095 | applications which accepts building permit applications in an |
| 1096 | electronic format shall provide public Internet access to the |
| 1097 | electronic building permit applications in a searchable format. |
| 1098 | (7) This section applies to every municipality and county |
| 1099 | in the state which now has or hereafter may have a system of |
| 1100 | issuing building permits for the construction of improvements or |
| 1101 | for the alteration or repair of improvements on or to real |
| 1102 | property located within the geographic limits of the issuing |
| 1103 | authority. |
| 1104 | Section 7. Section 713.137, Florida Statutes, is created |
| 1105 | to read: |
| 1106 | 713.137 Prerequisites to inspection of improvements; |
| 1107 | exceptions.- |
| 1108 | (1) The authority issuing a building permit or a private |
| 1109 | provider providing inspection services may not inspect the real |
| 1110 | property being improved unless: |
| 1111 | (a) The following documents have been filed with the |
| 1112 | issuing authority: |
| 1113 | 1.a. A certified copy of the recorded notice of |
| 1114 | commencement; or |
| 1115 | b. A notarized statement that the notice of commencement |
| 1116 | has been filed for recording, along with a copy of the notice. |
| 1117 | 2.a. A copy of the contractor's recorded payment bond; or |
| 1118 | b. A notarized statement of the contractor or owner |
| 1119 | stating that a payment bond was not required. |
| 1120 | 3. A signed copy of the general statement of owner's |
| 1121 | rights and responsibilities under Florida's Construction Lien |
| 1122 | Law, if required by s. 713.015. |
| 1123 | (b) The information in the notice of commencement filed |
| 1124 | with the issuing authority is consistent with the building |
| 1125 | permit application, complete, and legible. |
| 1126 | (2) This section does not apply to inspections of the |
| 1127 | following improvements: |
| 1128 | (a) The installation of temporary electrical service or |
| 1129 | other temporary utility service, land clearing, or other |
| 1130 | preliminary site work. |
| 1131 | (b) Improvements pursuant to a direct contract in an |
| 1132 | amount of $5,000 or less. |
| 1133 | (c) The repair or replacement of a heating or air- |
| 1134 | conditioning system pursuant to a direct contract in an amount |
| 1135 | of $7,500 or less. |
| 1136 | (d) The installation of a solar hot water system pursuant |
| 1137 | to a direct contract of $7,500 or less. |
| 1138 | Section 8. Section 713.16, Florida Statutes, is amended to |
| 1139 | read: |
| 1140 | 713.16 Demand for copy of contract and statements of |
| 1141 | account; form.- |
| 1142 | (1) A copy of the contract of a lienor or owner and a |
| 1143 | statement of the amount due or to become due if fixed or |
| 1144 | ascertainable thereon must be furnished by any party thereto, |
| 1145 | upon written demand of an owner or a lienor contracting with or |
| 1146 | employed by the other party to such contract. If the owner or |
| 1147 | lienor refuses or neglects to furnish such copy of the contract |
| 1148 | or such statement, or willfully and falsely states the amount |
| 1149 | due or to become due if fixed or ascertainable under such |
| 1150 | contract, any person who suffers any detriment thereby has a |
| 1151 | cause of action against the person refusing or neglecting to |
| 1152 | furnish the same or willfully and falsely stating the amount due |
| 1153 | or to become due for his or her damages sustained thereby. The |
| 1154 | information contained in such copy or statement furnished |
| 1155 | pursuant to such written demand is binding upon the owner or |
| 1156 | lienor furnishing it unless actual notice of any modification is |
| 1157 | given to the person demanding the copy or statement before such |
| 1158 | person acts in good faith in reliance on it. The person |
| 1159 | demanding such documents must pay for the reproduction thereof; |
| 1160 | and, if such person fails or refuses to do so, he or she is |
| 1161 | entitled only to inspect such documents at reasonable times and |
| 1162 | places. |
| 1163 | (2) The owner may serve in writing a demand of any lienor |
| 1164 | for a written statement under oath of his or her account showing |
| 1165 | the nature of the labor or services performed and to be |
| 1166 | performed, if any, the materials furnished, the materials to be |
| 1167 | furnished, if known, the amount paid on account to date, the |
| 1168 | amount due, and the amount to become due, if known, as of the |
| 1169 | date of the statement by the lienor. Any such demand to a lienor |
| 1170 | must be served on the lienor at the address and to the attention |
| 1171 | of any person who is designated to receive the demand in the |
| 1172 | notice to owner served by such lienor and must include a |
| 1173 | description of the project, including the names of the owner, |
| 1174 | the contractor, and the lienor's customer, sufficient for the |
| 1175 | lienor to properly identify the account in question. The failure |
| 1176 | or refusal to furnish the statement does not deprive the lienor |
| 1177 | of his or her lien if the demand is not served at the address of |
| 1178 | the lienor or directed to the attention of the person designated |
| 1179 | to receive the demand in the notice to owner. The failure or |
| 1180 | refusal to furnish the statement under oath within 30 days after |
| 1181 | the demand, or the furnishing of a false or fraudulent |
| 1182 | statement, deprives the person so failing or refusing to furnish |
| 1183 | such statement of his or her lien. If the owner serves more than |
| 1184 | one demand for statement of account on a lienor and none of the |
| 1185 | information regarding the account has changed since the lienor's |
| 1186 | last response to a demand, the failure or refusal to furnish |
| 1187 | such statement does not deprive the lienor of his or her lien. |
| 1188 | The negligent inclusion or omission of any information deprives |
| 1189 | the person of his or her lien to the extent the owner can |
| 1190 | demonstrate prejudice from such act or omission by the lienor. |
| 1191 | The failure to furnish a response to a demand for statement of |
| 1192 | account does not affect the validity of any claim of lien being |
| 1193 | enforced through a foreclosure case filed prior to the date the |
| 1194 | demand for statement is received by the lienor. |
| 1195 | (3) A request for sworn statement of account must be in |
| 1196 | substantially the following form: |
| 1197 |
|
| 1198 | REQUEST FOR SWORN STATEMENT OF ACCOUNT |
| 1199 |
|
| 1200 | WARNING: YOUR FAILURE TO FURNISH THE REQUESTED STATEMENT, |
| 1201 | SIGNED UNDER OATH, WITHIN 30 DAYS OR THE FURNISHING OF A FALSE |
| 1202 | STATEMENT WILL RESULT IN THE LOSS OF YOUR LIEN. |
| 1203 |
|
| 1204 | To: ...(Lienor's name and address)... |
| 1205 |
|
| 1206 | The undersigned hereby demands a written statement under |
| 1207 | oath of his or her account showing the nature of the labor or |
| 1208 | services performed and to be performed, if any, the materials |
| 1209 | furnished, the materials to be furnished, if known, the amount |
| 1210 | paid on account to date, the amount due, and the amount to |
| 1211 | become due, if known, as of the date of the statement for the |
| 1212 | improvement of real property identified as ...(property |
| 1213 | description).... |
| 1214 |
|
| 1215 | Name of contractor:_______________ |
| 1216 |
|
| 1217 | Name of the lienor's customer (as specified in the lienor's |
| 1218 | Notice to Owner, if such notice has been served):_______________ |
| 1219 |
|
| 1220 | ...(signature and address of owner)... |
| 1221 | ...(date of request for sworn statement of account)... |
| 1222 | (4) When a contractor has furnished a payment bond |
| 1223 | pursuant to s. 713.23, he or she may, when an owner makes any |
| 1224 | payment to the contractor or directly to a lienor, serve a |
| 1225 | written demand on any other lienor for a written statement under |
| 1226 | oath of his or her account showing the nature of the labor or |
| 1227 | services performed and to be performed, if any, the materials |
| 1228 | furnished, the materials to be furnished, if known, the amount |
| 1229 | paid on account to date, the amount due, and the amount to |
| 1230 | become due, if known, as of the date of the statement by the |
| 1231 | lienor. Any such demand to a lienor must be served on the lienor |
| 1232 | at the address and to the attention of any person who is |
| 1233 | designated to receive the demand in the notice to contractor |
| 1234 | served by such lienor. The failure or refusal to furnish the |
| 1235 | statement does not deprive the lienor of his or her rights under |
| 1236 | the bond if the demand is not served at the address of the |
| 1237 | lienor or directed to the attention of the person designated to |
| 1238 | receive the demand in the notice to contractor or does not |
| 1239 | include a description of the project, including the names of the |
| 1240 | owner, the contractor, and the lienor's customer as set forth in |
| 1241 | the lienor's notice to contractor, sufficient for the lienor to |
| 1242 | properly identify the account in question. The failure to |
| 1243 | furnish the statement within 30 days after the demand, or the |
| 1244 | furnishing of a false or fraudulent statement, deprives the |
| 1245 | person who fails to furnish the statement, or who furnishes the |
| 1246 | false or fraudulent statement, of his or her rights under the |
| 1247 | bond. If the contractor serves more than one demand for |
| 1248 | statement of account on a lienor and none of the information |
| 1249 | regarding the account has changed since the lienor's last |
| 1250 | response to a demand, the failure or refusal to furnish such |
| 1251 | statement does not deprive the lienor of his or her rights under |
| 1252 | the bond. The negligent inclusion or omission of any information |
| 1253 | deprives the person of his or her rights under the bond to the |
| 1254 | extent the contractor can demonstrate prejudice from such act or |
| 1255 | omission by the lienor. The failure to furnish a response to a |
| 1256 | demand for statement of account does not affect the validity of |
| 1257 | any claim on the bond being enforced in a lawsuit filed prior to |
| 1258 | the date the demand for statement of account is received by the |
| 1259 | lienor. |
| 1260 | (5)(a) Any lienor who submits or mails has recorded a |
| 1261 | claim of lien to the clerk for recording may make |
| 1262 | on the owner for a written statement under oath showing: |
| 1263 | 1. The amount of the direct contract under which the lien |
| 1264 | was recorded; |
| 1265 | 2. The dates and amounts paid or to be paid by or on |
| 1266 | behalf of the owner for all improvements described in the direct |
| 1267 | contract; |
| 1268 | 3. The reasonable estimated costs of completing the direct |
| 1269 | contract under which the lien was claimed pursuant to the scope |
| 1270 | of the direct contract; and |
| 1271 | 4. If known, the actual cost of completion. |
| 1272 | (b) Any owner who does not provide the statement within 30 |
| 1273 | days after demand, or who provides a false or fraudulent |
| 1274 | statement, is not a prevailing party for purposes of an award of |
| 1275 | attorney's fees under s. 713.29. The written demand must include |
| 1276 | the following warning in conspicuous type in substantially the |
| 1277 | following form: |
| 1278 | WARNING: YOUR FAILURE TO FURNISH THE REQUESTED STATEMENT |
| 1279 | WITHIN 30 DAYS OR THE FURNISHING OF A FALSE STATEMENT WILL |
| 1280 | RESULT IN THE LOSS OF YOUR RIGHT TO RECOVER ATTORNEY FEES IN ANY |
| 1281 | ACTION TO ENFORCE THE CLAIM OF LIEN OF THE PERSON REQUESTING |
| 1282 | THIS STATEMENT. |
| 1283 | (6) Any written demand served on the owner shall include a |
| 1284 | description of the project, including the names of the |
| 1285 | contractor and the lienor's customer as set forth in the |
| 1286 | lienor's notice to owner, sufficient for the owner to properly |
| 1287 | identify the project in question. |
| 1288 | (7)(6) For purposes of this section, the term |
| 1289 | "information" means the nature and quantity of the labor, |
| 1290 | services, and materials furnished or to be furnished by a lienor |
| 1291 | and the amount paid, the amount due, and the amount to become |
| 1292 | due on the lienor's account. |
| 1293 | Section 9. Section 713.18, Florida Statutes, is amended to |
| 1294 | read: |
| 1295 | 713.18 Manner of serving notices and other instruments.- |
| 1296 | (1) Service of notices, claims of lien, affidavits, |
| 1297 | assignments, and other instruments permitted or required under |
| 1298 | this part, or copies thereof when so permitted or required, |
| 1299 | unless otherwise specifically provided in this part, must be |
| 1300 | made by one of the following methods: |
| 1301 | (a) By actual delivery to the person to be served; if a |
| 1302 | partnership, to one of the partners; if a corporation, to an |
| 1303 | officer, director, managing agent, or business agent; or, if a |
| 1304 | limited liability company, to a member or manager. |
| 1305 | (b) By sending the same by common carrier delivery service |
| 1306 | or registered, global express guaranteed, or certified mail, |
| 1307 | with postage prepaid, and or by overnight or second-day delivery |
| 1308 | with evidence of delivery, which may be in an electronic format. |
| 1309 | (c) If the method specified in paragraph (a) or paragraph |
| 1310 | (b) cannot be accomplished, By posting on the site of the |
| 1311 | improvement if service as provided by paragraph (a) or paragraph |
| 1312 | (b) cannot be accomplished premises. |
| 1313 | (2) Notwithstanding subsection (1), service of if a notice |
| 1314 | to owner, a notice to contractor under s. 713.23, or a |
| 1315 | preliminary notice under s. 255.05 is mailed by registered or |
| 1316 | certified mail with postage prepaid to the person to be served |
| 1317 | at any of the addresses set forth in subsection (3) within 40 |
| 1318 | days after the date the lienor first furnishes labor, services, |
| 1319 | or materials, service of that notice is effective as of the date |
| 1320 | of mailing if: |
| 1321 | (a) The notice is mailed by registered, global express |
| 1322 | guaranteed, or certified mail, with postage prepaid, to the |
| 1323 | person to be served at any of the addresses set forth in |
| 1324 | subsection (3). |
| 1325 | (b) The notice is mailed within 40 days after the date the |
| 1326 | lienor first furnishes labor, services, or materials. |
| 1327 | (c)1. The person who served the notice maintains a |
| 1328 | registered or certified mail log that shows the registered or |
| 1329 | certified mail number issued by the United States Postal |
| 1330 | Service, the name and address of the person served, and the date |
| 1331 | stamp of the United States Postal Service confirming the date of |
| 1332 | mailing; or if |
| 1333 | 2. The person who served the notice maintains electronic |
| 1334 | tracking records generated through use of the United States |
| 1335 | Postal Service Confirm service or a similar service containing |
| 1336 | the postal tracking number, the name and address of the person |
| 1337 | served, and verification of the date of receipt by the United |
| 1338 | States Postal Service. |
| 1339 | (3)(a) Service of If an instrument served pursuant to this |
| 1340 | section is effective on the date of mailing if the instrument: |
| 1341 | 1. Was sent to the last address shown in the notice of |
| 1342 | commencement or any amendment thereto or, in the absence of a |
| 1343 | notice of commencement, to the last address shown in the |
| 1344 | building permit application, or to the last known address of the |
| 1345 | person to be served; and, is not received, but |
| 1346 | 2. Is returned as being "refused," "moved, not |
| 1347 | forwardable," or "unclaimed," or is otherwise not delivered or |
| 1348 | deliverable through no fault of the person serving the item, |
| 1349 | then service is effective on the date the instrument was sent. |
| 1350 | (b) If the address information shown in the notice of |
| 1351 | commencement or any amendment to the notice, or in the absence |
| 1352 | of a notice of commencement, in the building permit application, |
| 1353 | is incomplete for purposes of mailing or delivery, the person |
| 1354 | serving the item may complete the address and properly format it |
| 1355 | according to United States Postal Service addressing standards |
| 1356 | using information obtained from the property appraiser or |
| 1357 | another public record or directory without affecting the |
| 1358 | validity of service under this section. |
| 1359 | (4) A notice served by a lienor on one owner or one |
| 1360 | partner of a partnership owning the real property If the real |
| 1361 | property is owned by more than one person or a partnership, a |
| 1362 | lienor may serve any notices or other papers under this part on |
| 1363 | any one of such owners or partners, and such notice is deemed |
| 1364 | notice to all owners and partners. |
| 1365 | Section 10. Section 713.22, Florida Statutes, is amended |
| 1366 | to read: |
| 1367 | 713.22 Duration of lien.- |
| 1368 | (1) A No lien provided by this part may not shall continue |
| 1369 | for a longer period than 1 year after the claim of lien has been |
| 1370 | recorded or 1 year after the recording of an amended claim of |
| 1371 | lien that shows a later date of final furnishing of labor, |
| 1372 | services, or materials, unless within that time an action to |
| 1373 | enforce the lien is commenced in a court of competent |
| 1374 | jurisdiction. A lien that has been continued beyond the 1-year |
| 1375 | period The continuation of the lien effected by the commencement |
| 1376 | of an the action is shall not enforceable be good against |
| 1377 | creditors or subsequent purchasers for a valuable consideration |
| 1378 | and without notice, unless a notice of lis pendens is recorded. |
| 1379 | (2) An owner or the owner's agent or attorney may elect to |
| 1380 | shorten the time prescribed in subsection (1) within which to |
| 1381 | commence an action to enforce any claim of lien or claim against |
| 1382 | a bond or other security under s. 713.23 or s. 713.24 by |
| 1383 | recording in the clerk's office a notice in substantially the |
| 1384 | following form: |
| 1385 |
|
| 1386 | NOTICE OF CONTEST OF LIEN |
| 1387 |
|
| 1388 | To: ...(Name and address of lienor)... |
| 1389 |
|
| 1390 | You are notified that the undersigned contests the claim of lien |
| 1391 | filed by you on _____, ...(year)..., and recorded in _____ Book |
| 1392 | _____, Page _____, of the public records of _____ County, |
| 1393 | Florida, and that the time within which you may file suit to |
| 1394 | enforce your lien is limited to 60 days from the date of service |
| 1395 | of this notice. This _____ day of _____, ...(year).... |
| 1396 |
|
| 1397 | Signed: ...(Owner or Attorney)... |
| 1398 |
|
| 1399 | The lien of any lienor upon whom such notice is served and |
| 1400 | who fails to institute a suit to enforce his or her lien within |
| 1401 | 60 days after service of such notice shall be extinguished |
| 1402 | automatically. The clerk shall serve mail a copy of the notice |
| 1403 | of contest to the lien claimant at the address shown in the |
| 1404 | claim of lien or most recent amendment thereto and shall certify |
| 1405 | to such service on the face of such notice and record the |
| 1406 | notice. Service shall be deemed complete upon mailing. |
| 1407 | Section 11. Paragraph (e) of subsection (1) and |
| 1408 | subsections (2) and (4) of section 713.23, Florida Statutes, are |
| 1409 | amended to read: |
| 1410 | 713.23 Payment bond.- |
| 1411 | (1) |
| 1412 | (e) An No action for the labor or materials or supplies |
| 1413 | may not be instituted or prosecuted against the contractor or |
| 1414 | surety unless both notices have been given. An No action may not |
| 1415 | shall be instituted or prosecuted against the contractor or |
| 1416 | against the surety on the bond under this section after 1 year |
| 1417 | from the performance of the labor or completion of delivery of |
| 1418 | the materials and supplies. The time period for bringing an |
| 1419 | action against the contractor or surety on the bond shall be |
| 1420 | measured from the last day of furnishing labor, services, or |
| 1421 | materials by the lienor. The time period may and shall not be |
| 1422 | measured by other standards, such as the issuance of a |
| 1423 | certificate of occupancy or the issuance of a certificate of |
| 1424 | substantial completion. A contractor or the contractor's agent |
| 1425 | or attorney may elect to shorten the prescribed time within |
| 1426 | which an action to enforce any claim against a payment bond |
| 1427 | provided under this section or s. 713.245 must may be commenced |
| 1428 | at any time after a notice of nonpayment, if required, has been |
| 1429 | served for the claim by recording in the clerk's office a notice |
| 1430 | in substantially the following form: |
| 1431 |
|
| 1432 | NOTICE OF CONTEST OF CLAIM |
| 1433 | AGAINST PAYMENT BOND |
| 1434 |
|
| 1435 | To: ...(Name and address of lienor)... |
| 1436 |
|
| 1437 | You are notified that the undersigned contests your notice |
| 1438 | of nonpayment, dated _____, _____, and served on the undersigned |
| 1439 | on _____, _____, and that the time within which you may file |
| 1440 | suit to enforce your claim is limited to 60 days from the date |
| 1441 | of service of this notice. |
| 1442 | DATED on _____, _____. |
| 1443 |
|
| 1444 | Signed: ...(Contractor or Attorney)... |
| 1445 |
|
| 1446 | The claim of any lienor upon whom the notice is served and |
| 1447 | who fails to institute a suit to enforce his or her claim |
| 1448 | against the payment bond within 60 days after service of the |
| 1449 | notice shall be extinguished automatically. The clerk shall |
| 1450 | serve mail a copy of the notice of contest to the lienor at the |
| 1451 | address shown in the notice of nonpayment or most recent |
| 1452 | amendment thereto and shall certify to such service on the face |
| 1453 | of the notice and record the notice. Service is complete upon |
| 1454 | mailing. |
| 1455 | (2) The bond shall secure every lien under the direct |
| 1456 | contract accruing subsequent to its execution and delivery, |
| 1457 | except that of the contractor. Every claim of lien, except that |
| 1458 | of the contractor, filed subsequent to execution and delivery of |
| 1459 | the bond shall be transferred to it with the same effect as |
| 1460 | liens transferred under s. 713.24. Record notice of the transfer |
| 1461 | shall be effected by the contractor, or any person having an |
| 1462 | interest in the property against which the claim of lien has |
| 1463 | been asserted, by recording in the clerk's office a notice in |
| 1464 | substantially the following form: |
| 1465 |
|
| 1466 | NOTICE OF BOND |
| 1467 |
|
| 1468 | To ...(Name and Address of Lienor)... |
| 1469 |
|
| 1470 | You are notified that the claim of lien filed by you on _____, |
| 1471 | _____, and recorded in Official Records Book _____ at page _____ |
| 1472 | of the public records of _____ County, Florida, is secured by a |
| 1473 | bond, a copy being attached. |
| 1474 |
|
| 1475 | Signed: ...(Name of person recording notice)... |
| 1476 |
|
| 1477 | The notice shall be verified. The clerk shall mail a copy |
| 1478 | of the notice to the lienor at the address shown in the claim of |
| 1479 | lien, or the most recent amendment to it; shall certify to the |
| 1480 | service on the face of the notice; and shall record the notice. |
| 1481 | The clerk shall receive the same fee as prescribed in s. 713.24 |
| 1482 | s. 713.24(1) for certifying to a transfer of lien. |
| 1483 | (4) The provisions of s. 713.24(7) s. 713.24(3) shall |
| 1484 | apply to bonds under this section. |
| 1485 | Section 12. Section 713.24, Florida Statutes, is amended |
| 1486 | to read: |
| 1487 | 713.24 Transfer of liens to security.- |
| 1488 | (1) A Any lien claimed under this part may be transferred, |
| 1489 | by a any person having an interest in the real property upon |
| 1490 | which the lien is imposed or the contract under which the lien |
| 1491 | is claimed, from such real property to other security by either: |
| 1492 | (a) Depositing in the clerk's office a sum of money;, or |
| 1493 | (b) Filing in the clerk's office a bond executed as surety |
| 1494 | by a surety insurer licensed to do business in this state., |
| 1495 | (2) The security must either to be in an amount equal to |
| 1496 | the amount demanded in the such claim of lien, plus interest on |
| 1497 | the claim thereon at the legal rate for 3 years, plus $1,000 or |
| 1498 | 25 percent of the amount demanded in the claim of lien, |
| 1499 | whichever is greater, to apply on any attorney's fees and court |
| 1500 | costs that may be taxed in any proceeding to enforce the said |
| 1501 | lien. |
| 1502 | (3) The security Such deposit or bond shall be conditioned |
| 1503 | to pay any judgment or decree that which may be rendered for the |
| 1504 | satisfaction of the lien for which such claim of lien was |
| 1505 | recorded. |
| 1506 | (4) A Upon making such deposit or filing such bond, the |
| 1507 | clerk who receives other security for a lien: |
| 1508 | (a) Shall make and record a certificate showing the |
| 1509 | transfer of the lien from the real property to the security. The |
| 1510 | clerk and shall serve mail a copy of the certificate and a copy |
| 1511 | of the bond, if the lien was transferred to a bond, on thereof |
| 1512 | by registered or certified mail to the lienor named in the claim |
| 1513 | of lien so transferred, at the address stated in the claim |
| 1514 | therein. When Upon filing the certificate of transfer is |
| 1515 | recorded, the real property is shall thereupon be released from |
| 1516 | the lien claimed, and the such lien is shall be transferred to |
| 1517 | the other said security. |
| 1518 | (b) May collect a service charge of no more than $20 for |
| 1519 | making and serving the certificate. The clerk may collect an |
| 1520 | additional charge of no more than $10 for each additional lien |
| 1521 | transferred to the security. The clerk shall receive the |
| 1522 | statutory service charges as prescribed in s. 28.24 for |
| 1523 | recording the certificate and approving the bond. |
| 1524 | (5) In the absence of allegations of privity between the |
| 1525 | lienor and the owner, and subject to any order of the court |
| 1526 | increasing the amount required for the lien transfer deposit or |
| 1527 | bond, no other judgment or decree to pay money may be entered by |
| 1528 | the court against the owner. The clerk shall be entitled to a |
| 1529 | service charge for making and serving the certificate, in the |
| 1530 | amount of up to $20. If the transaction involves the transfer of |
| 1531 | multiple liens, an additional charge of up to $10 for each |
| 1532 | additional lien shall be charged. For recording the certificate |
| 1533 | and approving the bond, the clerk shall receive her or his usual |
| 1534 | statutory service charges as prescribed in s. 28.24. Any number |
| 1535 | of liens may be transferred to one such security. |
| 1536 | (6)(2) Any excess of the security over the aggregate |
| 1537 | amount of any judgments or decrees rendered plus costs actually |
| 1538 | taxed shall be repaid to the party filing the same or her or his |
| 1539 | successor in interest. Any deposit of money shall be considered |
| 1540 | as paid into court and is shall be subject to the provisions of |
| 1541 | law relative to payments of money into court and the disposition |
| 1542 | of same. |
| 1543 | (7)(3) Any party having an interest in such security or |
| 1544 | the property from which the lien was transferred may at any |
| 1545 | time, and any number of times, file a complaint in chancery in |
| 1546 | the circuit court of the county where such security is |
| 1547 | deposited, or file a motion in a pending action to enforce a |
| 1548 | lien, for an order to require additional security, reduction of |
| 1549 | security, change or substitution of sureties, payment of |
| 1550 | discharge thereof, or any other matter affecting the said |
| 1551 | security. If the court finds that the amount of the deposit or |
| 1552 | bond in excess of the amount claimed in the claim of lien is |
| 1553 | insufficient to pay the lienor's attorney's fees and court costs |
| 1554 | incurred in the action to enforce the lien, the court must |
| 1555 | increase the amount of the cash deposit or lien transfer bond. |
| 1556 | Nothing in This section does not shall be construed to vest |
| 1557 | exclusive jurisdiction in the circuit courts over transfer bond |
| 1558 | claims for nonpayment of an amount within the monetary |
| 1559 | jurisdiction of the county courts. |
| 1560 | (8)(4) If a proceeding to enforce a transferred lien is |
| 1561 | not commenced within the time specified in s. 713.22 or if it |
| 1562 | appears that the transferred lien has been satisfied of record, |
| 1563 | the clerk shall return the said security upon request of the |
| 1564 | person depositing or filing the same, or the insurer. If a |
| 1565 | proceeding to enforce a lien is commenced in a court of |
| 1566 | competent jurisdiction within the time specified in s. 713.22 |
| 1567 | and, during such proceeding, the lien is transferred pursuant to |
| 1568 | this section or s. 713.13(1)(e), an action commenced within 1 |
| 1569 | year after the transfer, unless otherwise shortened by operation |
| 1570 | of law, in the same county or circuit court to recover against |
| 1571 | the security shall be deemed to have been brought as of the date |
| 1572 | of filing the action to enforce the lien, and the court has |
| 1573 | shall have jurisdiction over the action. |
| 1574 | Section 13. This act shall take effect July 1, 2010. |