How to Avoid Delays in Real Estate Closings Due to Mechanic's Liens

A mechanic's lien is a common but easily preventableshould receive a Release of Lien from every supplier,
occurrence for many Florida property owners. Thiscontractor and subcontractor, which covers the
type of lien is filed against a property when amaterials used and the work performed on the project.
contractor fails to pay one of their suppliers,The Release of Lien is a written statement that
subcontractors or laborers for property improvements.removes the property from the threat of lien.
The mechanics lien is a cloud on the property's title andIf the contract requires partial payments be made
can prevent or delay the sale or refinancing of thebefore the work is completed in full, the get a Partial
property until the mechanic's lien is paid.Release of Lien covering all workers and materials
Often a mechanic's lien is discovered long after it'sused up to that point in time.
been filed in the public records, but by taking a fewBefore final payment, obtain an affidavit from the
proactive measures in accordance with Florida'scontractor that specifies all unpaid parties who
Construction Lien Law, property owners can ensureperformed labor or services, or provided materials to
their properties are protected from the burdensthe property. Make sure the contractor obtains
imposed by such mechanic's liens.releases from all of these parties before making final
Notice of Commencementpayment.
File a Notice of Commencement before beginning anyNotice of Termination of Notice of Commencement
home construction or remodeling project. Record theAt the end of the project and after the contractor is
form with the Clerk of the Circuit Court in the countypaid in full and obtained all of the necessary Releases
where the property being improved is located. Post aof Lien and affidavits as described above are
certified copy at the job site, too.obtained, file a Notice of Termination of Notice of
The Notice notes the property owner's intent to beginCommencement with the Clerk of the Circuit Court in
improvements, the location of the property, descriptionthe county where the property being improved is
of the work and the amount of bond (if any). It alsolocated.
identifies the property owner, contractor, surety, lenderThe information in this article is of a general nature only
and other pertinent information.and is not intended to be relied upon as, nor a
A property owner who fails to record a Notice ofsubstitute for, specific professional advice. No
Commencement or incorrect information on the Noticeresponsibility for the loss occasioned to any purpose
could result in having to pay twice for the same workacting on or refraining from action as a result of any
or materials.material in this publication can be accepted.
Request a list of all subcontractors and suppliers whoThe hiring of a lawyer is an important decision that
have a contract with the contractor to provideshould not be based solely on advertisements. Before
services or materials to the property.you decide, ask us to send you free written
Releases of Lieninformation about our qualifications and experience.
Prior to making any payment, the property owner