If you work in construction in Florida, it’s important to know why Notice to Owner matters in Florida. This is a document you send to the property owner when you don’t have a direct contract with them (like when you’re working under a main contractor). Sending this notice protects your right to get paid if there are payment issues.
What is a Notice to Owner (NTO)?
An NTO is a notice you send to the property owner to let them know you are working on their project. This step is important because it helps protect your right to file a lien if you don’t get paid for your work or supplies.
Key Things to Remember About the NTO:
- Send it within 40 days of starting work. While Florida law allows up to 45 days, sending it by the 40th day is safer to avoid express mail costs and having the burden of proof for delivery.
- If you have a direct contract with the property owner, you don’t need an NTO, but it’s still a good idea to send one just in case.
- Even if you missed the 45-day deadline, sending an NTO can still be useful as a record to remind others of what they owe you, even though it won’t secure your lien rights.
Can a Notice of Nonpayment Replace an NTO?
No, it can’t. A Notice of Nonpayment is used to tell the owner and others involved in the project that you haven’t been paid. But this notice alone does not protect your lien rights.
Filing a Claim of Lien
After you send an NTO, the next step to protect your payment is to file a claim of lien. This must be done within 90 days of your last day of work. Remember, small tasks like fixing minor issues (punch work) don’t extend this deadline.
Tips for Staying on Track:
- Use Reminders: Set up reminders so you don’t miss important deadlines.
- Track Job Completion Dates: Enter the date you finish work into your system to get reminders at 30, 45, 60, and 75 days, so you don’t forget the 90-day deadline.
Why Filing on Time is Important
If you don’t file an NTO on time, you lose the right to file a lien (unless you have a direct contract with the owner). This is why Notice To Owner (NTO) matters. This could be a big problem if the property is sold before you file a lien, as you would only be able to get paid by your direct client. If that client goes out of business or doesn’t get paid, you might not get paid at all.
Filing a claim of lien early can help ensure you get paid, as it alerts title companies when a property is being sold. This way, your claim can be taken care of before the property changes hands.
Final Thoughts
Always file an NTO as soon as possible for each project. A Notice of Nonpayment is helpful for showing unpaid balances but does not replace the NTO or secure lien rights. By following these steps, you can better protect your business and make sure you get paid for your work.
Key Tip: Don’t miss the deadline for filing an NTO. It is the most important step in keeping your lien rights safe and to ensure you get paid if issues arise.
Want to learn more about protecting your lien right in Florida? Check out this other article on our website. https://sunshinenotices.com/notice-to-owner-a-contractors-most-powerful-tool/
and you can always check out the Florida Statutes here