Under Florida’s Construction Lien Law (Chapter 713, Florida Statutes), contractors, subcontractors, and suppliers have just 90 days from the last day they provided labor or materials to file a construction lien. This short deadline often leads to liens being recorded even when the owner has legitimate reasons to withhold payment.
So, what can property owners do when faced with a construction lien? Here are five key options to remove or challenge a lien in Florida.
What is a Construction Lien in Florida?
A construction lien acts as a legal claim against a property, securing unpaid amounts owed to contractors, subcontractors, or suppliers. If unresolved, it can prevent the property owner from selling or refinancing the property.
How Long Does a Construction Lien Last?
A lien expires one year after it is recorded unless enforced by a lawsuit.
This timeframe can be shortened to 60 days if the owner files a Notice of Contest of Lien.
If challenged through show cause proceedings, the lienor must respond within 20 days, or the lien may be removed by court order.
5 Ways to Remove a Construction Lien in Florida
1. Bonding Off the Lien
A property owner can “bond off” a lien under Section 713.24(1), F.S., by: Depositing money into the Clerk of Courts’ Registry Obtaining a surety bond to clear the title
This transfers the lien from the property to the bond, allowing for sales or refinancing while litigation continues. The required bond amount is:
100% of the lien amount
3 years of interest at the legal rate
The greater of $5,000 or 25% of the lien amount to cover costs and attorney fees
Recording and Registry Fees
2. Filing a Notice of Contest of Lien
If the property owner records a Notice of Contest of Lien (Section 713.22(2), F.S.), it shortens the time the lienor has to sue from one year to just 60 days. If they don’t file suit, the lien is automatically extinguished.
3. Show Cause Proceedings
Under Section 713.21(4), F.S., a property owner can file a lawsuit to force the lienor to prove their case within 20 days. If they fail to respond, the court can remove the lien. This is one of the fastest ways to clear a lien, but it requires legal action. If a lienor sees issues with their lien, they may choose not to fight it, avoiding attorney fees and court costs.
4. Letting the Lien Expire
A construction lien automatically expires after one year unless enforced through a lawsuit. If a Notice of Contest of Lien has been filed, this timeframe drops to 60 days.
5. Satisfying the Lien
If the lien is valid, the owner can pay the amount claimed and obtain a Satisfaction of Lien recorded in public records. However, before making payment, owners should:
Ensure payments comply with Florida’s Construction Lien Law to avoid double payment liability.
Provide 10 days’ notice to the contractor if the lienor is a subcontractor or supplier.
What About Condominium Owners?
Under Section 718.121(3), F.S., individual condominium unit owners can use the above options for their proportionate share of the lien.
For example, in a 50-unit condo, a unit owner can bond off 1/50th of the total lien amount rather than dealing with the full lien.
When Should a Property Owner Consult a Lawyer?
Before taking action, owners should consult a construction attorney to evaluate their options. In many cases, demanding a sworn statement from the lienor or requesting an accounting of amounts paid and due can also provide leverage.
Frequently Asked Questions (FAQs)
How do I remove a construction lien in Florida?
You can remove a lien by bonding it off, filing a Notice of Contest, initiating Show Cause Proceedings, letting it expire, or paying and obtaining a Satisfaction of Lien.
What happens if I ignore a construction lien?
If no legal action is taken within one year (or 60 days if a Notice of Contest is filed), the lien expires. However, a contractor can file suit to enforce it before then.
Can a contractor file a lien if I haven’t paid them?
Yes, but they must meet all legal requirements under Chapter 713, F.S. If the contractor failed to serve a proper Notice to Owner (NTO) or the lien contains errors, it may be invalid.
Does a lien affect my ability to sell or refinance my property?
Yes. A lien creates a cloud on title, meaning most lenders and title companies will require it to be resolved before closing on a sale or refinance.
What if the lien amount is incorrect?
If the lienor exaggerates the claim, it may be fraudulent under Florida law. Property owners can challenge the lien in court and seek removal.
A note to the reader: This article is intended to provide general information and is not intended to be a substitute for competent legal advice. Competent legal counsel should be consulted if you have questions regarding compliance with the law.
Pope Mazzara & Menendez, PLLC handles construction lien matters across Florida, helping contractors, subcontractors, and property owners protect their rights under Florida’s Construction Lien Law.