As a construction business owner in Florida, there are several steps you can take to protect your property against liens. One of the most effective measures is to file a Notice of Commencement with the county clerk where the construction project is taking place.
This document is a public record that serves to notify all potential lienors that construction is occurring on the property and identify the owner and contractor. It also includes the property address and legal description, the estimated cost of the project, and the name and contact information of the surety bond company.
If you are concerned about potential liens on your property, you can also require your subcontractors and suppliers to provide you with lien waivers, indicating that they have been paid in full for their work and materials. You should keep a record of these waivers and ensure that they are properly executed to be legally binding.
You can also consider obtaining a surety bond, which is a form of insurance that provides protection against liens. This typically involves paying a premium to a surety company, who will then issue a bond covering the amount of the lien if one is filed.
Finally, if you do receive a Notice to Owner or Claim of Lien on your property, it is important to act quickly and seek legal advice. In some cases, it may be possible to contest the validity of the lien or negotiate a settlement with the lienor.
It is important to note that while these steps can help protect against liens, they are not foolproof and there may be exceptions or limitations depending on the specific circumstances of your construction project. It is always recommended to consult with a licensed attorney to discuss your individual needs and concerns.
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