Notice of Commencement

A Notice of Commencement is typically required by a permitting authority before a permit will be issued. It s recorded in the county where the property is located, within 90 days of commencing work and is posted at the job site. This document includes the name and address of the owner, general contractor, lender, bonding company and any other parties involved. It should also contain the job address, legal description and a description of the work to be completed. A Notice of Commencement is valid for one year unless extended or decreased by a date stated on the form.

713.13 Notice of commencement.—
Except for an improvement that is exempt pursuant to s. 713.02(5), an owner or the owner’s authorized agent before actually commencing to improve any real property, or recommencing completion of any improvement after default or abandonment, whether or not a project has a payment bond complying with s. 713.23, shall record a notice of commencement in the clerk’s office and forthwith post either a certified copy thereof or a notarized statement that the notice of commencement has been filed for recording along with a copy thereof.

Notice to Owner

A Notice to Owner is a prerequisite to filing a claim of lien. It must be sent by anyone NOT working directly for the owner. The only exceptions are laborers, professionals and those making subdivision improvements, these parties are not required to file a Notice to Owner. The Notice to Owner puts the owner on notice to get a release of lien from those companies filing a Notice to Owner every time they pay their contractor to protect the owner from paying twice. This notice must be received by the owner/tenant** and general contractor by the 45th day from the first day on the job, or mailed by the 40th day from the first day on the job. All parties listed on the Notice of Commencement are also served. When a company is providing prefabricated materials that can only be used on the property it was ordered for the first day runs from the first day of prefabrication. Sunshine Notices, Inc. sends all necessary parties by certified mail and/or regular mail, and maintains a certified mail manifest as proof of mailing in a timely manner. Upon request we can send your notices by certified return receipt as well. Timely service of a Notice to Owner ensures your right to claim a lien. However, in the event that the company that you have your contract with receives full payment from the people that they are working for, then even if you file your notice within your 45 days, you will not have lien rights. So file your notice to owner as soon as you take the contract or step foot on the job, whichever comes first. What was your first day on the job? Notice to Owner must be mailed by: 713.06 2(a) All lienors under this section, except laborers, as a prerequisite to perfecting a lien under this chapter and recording a claim of lien, must serve a notice on the owner setting forth the lienor’s name and address, a description sufficient for identification of the real property, and the nature of the services or materials furnished or to be furnished. A sub-subcontractor or a materialman to a subcontractor must serve a copy of the notice on the contractor as a prerequisite to perfecting a lien under this chapter and recording a claim of lien. A materialman to a sub-subcontractor must serve a copy of the notice to owner on the contractor as a prerequisite to perfecting a lien under this chapter and recording a claim of lien. A materialman to a sub-subcontractor shall serve the notice to owner on the subcontractor if the materialman knows the name and address of the subcontractor. The notice must be served before commencing, or not later than 45 days after commencing, to furnish his or her labor, services, or materials, but, in any event, before the date of the owner’s disbursement of the final payment after the contractor has furnished the affidavit under subparagraph (3)(d)1. The notice must be served regardless of the method of payments by the owner, whether proper or improper, and does not give to the lienor serving the notice any priority over other lienors in the same category; and the failure to serve the notice, or to timely serve it, is a complete defense to enforcement of a lien by any person. The serving of the notice does not dispense with recording the claim of lien. The notice is not a lien, cloud, or encumbrance on the real property nor actual or constructive notice of any of them.

Notice to Contractor

A Notice to Contractor is the equivalent of a Notice to Owner on a bonded job. Municipal and government projects over $250,000 are typically bonded. Bonded jobs are not exclusive to public projects; many large private projects are bonded. A Notice to Contractor is combined with our Notice to Owner form and the time requirements are the same. The only variation is the parties that must be served. On a bonded job the general contractor must be served in a timely manner. Timely service to the general contractor ensures your right to claim against the bond. When was your last day on the job?  Claim of Lien must be recorded by:  in order to keep your Lien Rights intact and proceed to Step 3. Florida Statutes 713.23 (c)  Before beginning or within 45 days after beginning to furnish labor, materials, or supplies, a lienor who is not in privity with the contractor, except a laborer, shall serve the contractor with notice in writing that the lienor will look to the contractor’s bond for protection on the work. If a notice of commencement with the attached bond is not recorded before commencement of construction, the lienor not in privity with the contractor may, in the alternative, elect to serve the notice to the contractor up to 45 days after the date the lienor is served with a copy of the bond. A notice to owner pursuant to s. 713.06 that has been timely served on the contractor satisfies the requirements of this paragraph. However, the limitation period for commencement of an action on the payment bond as established in paragraph (e) may not be expanded. The notice may be in substantially the following form and may be combined with a notice to owner given under s. 713.06 and, if so, may be entitled “NOTICE TO OWNER/NOTICE TO CONTRACTOR”

Claim of Lien

A Claim of Lien becomes necessary when payment is not received. A Lien can only be filed by someone working directly for the owner or someone providing a timely Notice to Owner. A Claim of Lien is a recorded document which is filed in the county where the property improvement took place. It must be recorded within 90 days of the last day on the job and owner/lessee** must be served within 15 days of recording. The lien remains in effect for one year and must be foreclosed on by an attorney within this time. This time may be limited by an owners contest of lien which affords the lienor only 60 days to file a foreclosure. Parties that may file a lien include laborers, material-men, contractors, sub-contractors, sub-sub-contractors and professionals. Parties not entitled to lien include sub-sub-sub-contractors, material-men to material-men, material-men to sub-sub-sub-contractors and unlicensed contractors. When was your Claim of Lien recorded?  Must Foreclose Claim of Lien no later than:  in order to be able to collect monies owed. Claim of Lien After the 1st paragraph We act solely as an administrative service. Anyone seeking legal advice should contact an attorney.

Notice of Non Payment

A Notice of Non Payment is the equivalent of a lien on a bonded job. It is a claim against the bond and must be served on the general contractor and bonding company within 90 days of the last day on the job.

713.23 (d) (If a payment bond exists), a lienor is required, as a condition precedent to recovery under the bond, to serve a written notice of nonpayment to the contractor and the surety not later than 90 days after the final furnishing of labor, services, or materials by the lienor. A written notice satisfies this condition precedent with respect to the payment described in the notice of nonpayment, including unpaid finance charges due under the lienor’s contract, and with respect to any other payments which become due to the lienor after the date of the notice of nonpayment. The time period for serving a written notice of nonpayment shall be measured from the last day of furnishing labor, services, or materials by the lienor and shall not be measured by other standards, such as the issuance of a certificate of occupancy or the issuance of a certificate of substantial completion. The failure of a lienor to receive retainage sums not in excess of 10 percent of the value of labor, services, or materials furnished by the lienor is not considered a nonpayment requiring the service of the notice provided under this paragraph. If the payment bond is not recorded before commencement of construction, the time period for the lienor to serve a notice of nonpayment may at the option of the lienor be calculated from the date specified in this section or the date the lienor is served a copy of the bond. However, the limitation period for commencement of an action on the payment bond as established in paragraph (e) may not be expanded.

Demand Letter

A Demand Letter (Demand For Payment) is sent to achieve payment without having to file a Claim of Lien or Notice of Non Payment. It is not a statutory document and is sent to all parties involved to request payment before further action becomes necessary.

Satisfaction of Lien

A Satisfaction of Lien is a recorded document canceling a Claim of Lien. This document is filed by a lienor when the lienor receives full payment that is satisfactory. This document must be filed in the same county as the Claim of Lien.

Final Release of Lien

A Final Release of Lien or Conditional Final Release of Lien is prepared by the lienor when payment has been received in full. When payment is received by check a conditional release should be prepared. This would condition the release upon payment of the check by the bank. This is not a recorded document. Releases of Lien are only a part of what we offer. After filing your notice, you can pull over any Releases that are needed for each job, where it automatically attaches, so that you know what you have already generated.

Partial Release of Lien

A Partial Release of Lien or Conditional Partial Release of Lien is prepared by the lienor for progress payments and should have a conditional clause when payment is received in the form of a check. A conditional release would only be valid when the check is paid by the bank. A release is usually for a specific amount or through a specific time. This is not a recorded document. Releases of Lien are only a part of what we offer. After filing your notice, you can pull over any Releases that are needed for each job, where it automatically attaches, so that you know what you have already generated.

Frequently Asked Questions