Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. SB 1196
       
       
       
       
       
       
                                Barcode 156912                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/01/2011           .                                
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       The Committee on Regulated Industries (Altman) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 713.10, Florida Statutes, is amended to
    6  read:
    7         713.10 Extent of liens.—
    8         (1) Except as provided in s. 713.12, a lien under this part
    9  shall extend to, and only to, the right, title, and interest of
   10  the person who contracts for the improvement as such right,
   11  title, and interest exists at the commencement of the
   12  improvement or is thereafter acquired in the real property. When
   13  an improvement is made by a lessee in accordance with an
   14  agreement between such lessee and her or his lessor, the lien
   15  shall extend also to the interest of such lessor.
   16         (2)(a) When the lease expressly provides that the interest
   17  of the lessor shall not be subject to liens for improvements
   18  made by the lessee, the lessee shall notify the contractor
   19  making any such improvements of such provision or provisions in
   20  the lease, and the knowing or willful failure of the lessee to
   21  provide such notice to the contractor shall render the contract
   22  between the lessee and the contractor voidable at the option of
   23  the contractor.
   24         (b) The interest of the lessor shall not be subject to
   25  liens for improvements made by the lessee when:
   26         1. The lease, or a short form or a memorandum of the lease
   27  that contains the specific language in the lease prohibiting
   28  such liability, is recorded in the official records of the
   29  county where the premises are located before the recording of a
   30  notice of commencement for improvements to the premises
   31         (1) The lease or a short form thereof is recorded in the
   32  clerk’s office and the terms of the lease expressly prohibit
   33  such liability; or
   34         2.(2)The terms All of the lease expressly prohibit such
   35  liability and a notice advising that leases entered into by a
   36  lessor for the rental of premises on a parcel of land prohibit
   37  such liability and a notice which sets forth the following is
   38  has been recorded by the lessor in the official public records
   39  of the county in which the parcel of land is located before the
   40  recording of a notice of commencement for improvements to the
   41  premises and the notice includes the following:
   42         a.(a) The name of the lessor.
   43         b.(b) The legal description of the parcel of land to which
   44  the notice applies.
   45         c.(c) The specific language contained in the various leases
   46  prohibiting such liability.
   47         d.(d) A statement that all or a majority of the leases
   48  entered into for premises on the parcel of land expressly
   49  prohibit such liability contain the language identified in
   50  paragraph (c).
   51         (3) The lessee is a mobile home owner who is leasing a
   52  mobile home lot in a mobile home park from the lessor.
   53         (3) Any contractor or lienor under contract to furnish
   54  labor, services, or materials for improvements being made by a
   55  lessee may serve written demand on the lessor for a copy of the
   56  provision in the lease prohibiting liability for improvements
   57  made by the lessee, which copy shall be verified under s.
   58  92.525. The demand must identify the lessee and the premises
   59  being improved and must be in a document that is separate from
   60  the notice to the owner as provided in s. 713.06(2). The
   61  interest of any lessor who does not serve a verified copy of the
   62  lease provision within 30 days after demand, or who serves a
   63  false or fraudulent copy, is subject to a lien under this part
   64  by the contractor or lienor who made the demand if the
   65  contractor or lienor is otherwise entitled to a lien under this
   66  part and did not have actual notice that the interest of the
   67  lessor was not subject to a lien for improvements made by the
   68  lessee. The written demand must include a warning in conspicuous
   69  type in substantially the following form:
   70                               WARNING                             
   71         YOUR FAILURE TO SERVE THE REQUESTED VERIFIED COPY WITHIN 30
   72  DAYS OR THE SERVICE OF A FALSE COPY MAY RESULT IN YOUR PROPERTY
   73  BEING SUBJECT TO THE CLAIM OF LIEN OF THE PERSON REQUESTING THE
   74  VERIFIED COPY.
   75         Section 2. Paragraphs (a) and (d) of subsection (1) of
   76  section 713.13, Florida Statutes, are amended to read:
   77         713.13 Notice of commencement.—
   78         (1)(a) Except for an improvement that is exempt pursuant to
   79  s. 713.02(5), an owner or the owner’s authorized agent before
   80  actually commencing to improve any real property, or
   81  recommencing completion of any improvement after default or
   82  abandonment, whether or not a project has a payment bond
   83  complying with s. 713.23, shall record a notice of commencement
   84  in the clerk’s office and forthwith post either a certified copy
   85  thereof or a notarized statement that the notice of commencement
   86  has been filed for recording along with a copy thereof. The
   87  notice of commencement shall contain the following information:
   88         1. A description sufficient for identification of the real
   89  property to be improved. The description should include the
   90  legal description of the property and also should include the
   91  street address and tax folio number of the property if available
   92  or, if there is no street address available, such additional
   93  information as will describe the physical location of the real
   94  property to be improved.
   95         2. A general description of the improvement.
   96         3. The name and address of the owner, the owner’s interest
   97  in the site of the improvement, and the name and address of the
   98  fee simple titleholder, if other than such owner. A lessee who
   99  contracts for the improvements is an owner as defined under s.
  100  713.01(23) and must be listed as the owner.
  101         4. The name and address of the contractor.
  102         5. The name and address of the surety on the payment bond
  103  under s. 713.23, if any, and the amount of such bond.
  104         6. The name and address of any person making a loan for the
  105  construction of the improvements.
  106         7. The name and address within the state of a person other
  107  than himself or herself who may be designated by the owner as
  108  the person upon whom notices or other documents may be served
  109  under this part; and service upon the person so designated
  110  constitutes service upon the owner.
  111         (d) A notice of commencement must be in substantially the
  112  following form:
  113  
  114         Permit No..... Tax Folio No.....
  115                       NOTICE OF COMMENCEMENT                      
  116         State of....
  117         County of....
  118  
  119         The undersigned hereby gives notice that improvement will
  120  be made to certain real property, and in accordance with Chapter
  121  713, Florida Statutes, the following information is provided in
  122  this Notice of Commencement.
  123         1. Description of property: ...(legal description of the
  124  property, and street address if available)....
  125         2. General description of improvement:.....
  126         3. Owner information (A contracting party who is a lessee
  127  is an owner as defined under section 713.01(23), Florida
  128  Statutes, and must be listed here as the owner):.....
  129         a. Name and address:.....
  130         b. Interest in property:.....
  131         c. Name and address of fee simple titleholder (if other
  132  than Owner):.....
  133         4.a. Contractor: ...(name and address)....
  134         b. Contractor’s phone number:.....
  135         5. Surety
  136         a. Name and address:.....
  137         b. Phone number:.....
  138         c. Amount of bond: $.....
  139         6.a. Lender: ...(name and address)....
  140         b. Lender’s phone number:.....
  141         7.a. Persons within the State of Florida designated by
  142  Owner upon whom notices or other documents may be served as
  143  provided by Section 713.13(1)(a)7., Florida Statutes: ...(name
  144  and address)....
  145         b. Phone numbers of designated persons:.....
  146         8.a. In addition to himself or herself, Owner designates
  147  ............ of ............ to receive a copy of the Lienor’s
  148  Notice as provided in Section 713.13(1)(b), Florida Statutes.
  149         b. Phone number of person or entity designated by
  150  owner:.....
  151         9. Expiration date of notice of commencement (the
  152  expiration date is 1 year from the date of recording unless a
  153  different date is specified).....
  154  
  155         WARNING TO OWNER: ANY PAYMENTS MADE BY THE OWNER AFTER THE
  156  EXPIRATION OF THE NOTICE OF COMMENCEMENT ARE CONSIDERED IMPROPER
  157  PAYMENTS UNDER CHAPTER 713, PART I, SECTION 713.13, FLORIDA
  158  STATUTES, AND CAN RESULT IN YOUR PAYING TWICE FOR IMPROVEMENTS
  159  TO YOUR PROPERTY. A NOTICE OF COMMENCEMENT MUST BE RECORDED AND
  160  POSTED ON THE JOB SITE BEFORE THE FIRST INSPECTION. IF YOU
  161  INTEND TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER OR AN
  162  ATTORNEY BEFORE COMMENCING WORK OR RECORDING YOUR NOTICE OF
  163  COMMENCEMENT.
  164  
  165         ...(Signature of Owner or Owner’s Authorized
  166  Officer/Director/Partner/Manager/Lessee—a contracting party who
  167  is a lessee meets the definition of owner under section
  168  713.01(23), Florida Statutes, and should sign here as the
  169  owner)...
  170         ...(Signatory’s Title/Office)...
  171  
  172         The foregoing instrument was acknowledged before me this
  173  .... day of ...., ...(year)..., by ...(name of person)... as
  174  ...(type of authority, . . . e.g. officer, trustee, attorney in
  175  fact)... for ...(name of party on behalf of whom instrument was
  176  executed)....
  177  
  178         ...(Signature of Notary Public - State of Florida)...
  179         ...(Print, Type, or Stamp Commissioned Name of Notary
  180  Public)...
  181         Personally Known .... OR Produced Identification ....
  182         Type of Identification Produced............
  183  
  184         Verification pursuant to Section 92.525, Florida Statutes.
  185  
  186         Under penalties of perjury, I declare that I have read the
  187  foregoing and that the facts stated in it are true to the best
  188  of my knowledge and belief.
  189  
  190         ...(Signature of Natural Person Signing Above)...
  191         Section 3. This act shall take effect October 1, 2011.
  192  
  193  
  194  ================= T I T L E  A M E N D M E N T ================
  195         And the title is amended as follows:
  196         Delete everything before the enacting clause
  197  and insert:
  198                        A bill to be entitled                      
  199         An act relating to construction liens; amending s.
  200         713.10, F.S.; specifying that a lessor’s interest in
  201         property is not subject to a construction lien for
  202         improvements made by a lessee if certain documents
  203         containing specific information and meeting certain
  204         criteria are recorded in the official records of the
  205         county before the recording of a notice of
  206         commencement; authorizing certain contractors and
  207         lienors to demand that a lessor serve verified copies
  208         of a lease prohibiting liability for improvements made
  209         by a lessee; subjecting the interest of a lessor to a
  210         specified lien for failing to serve such verified
  211         copies or serving a false or fraudulent copy;
  212         requiring that the demand include a specified warning;
  213         amending s. 713.13, F.S.; revising the form for notice
  214         of commencement to include information relating to the
  215         obligations of a lessee who contracts for improvements
  216         to property providing an effective date.