Florida's Construction Lien Law: How Homeowners Avoid Paying Twice

Florida's construction lien law (Chapter 713, Part I of the Florida Statutes) protects the people who build and supply your project. It also creates a real risk for homeowners: you can end up paying twice for the same work. The good news is that the law also gives you the tools to prevent that.

This guide explains the process in plain English. It isn't legal advice; for disputes or large projects, talk to a Florida construction attorney.

Why you can pay twice

When you hire a contractor, the contractor hires subcontractors and buys materials from suppliers. If the contractor takes your money and doesn't pay them, those subs and suppliers may be able to file a construction lien on your property. A lien can block a sale or refinance until it's resolved, and you may have to pay to remove it, even though you already paid the contractor.

The notices in your contract

For a direct contract over $2,500 for a building with one to four homes, Florida law requires the contract to include a specific lien law notice in 12-point, capitalized, bold type, on the first page or a separate page that you sign and date. If you don't see it, ask why. Contracts over $2,500 also need the Recovery Fund notice.

How the process works

1. Notice of Commencement. Before the first inspection on jobs over $5,000, a Notice of Commencement is recorded, naming you, the contractor and anyone you designate to receive notices.
2. Notices to Owner. Subcontractors and suppliers who don't have a contract directly with you generally must serve a Notice to Owner no later than 45 days after they start furnishing labor or materials, and before you make final payment after receiving the contractor's final affidavit.
3. Releases with each payment. When you pay the contractor, ask for releases from the contractor and from each sub or supplier who served a Notice to Owner, covering the work being paid for.
4. Final payment affidavit. Before final payment, the contractor gives you a sworn affidavit stating that everyone has been paid, or listing who hasn't.
5. Final releases. Get final releases before or with the last payment.

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Practical tips

• Keep a folder with the Notice of Commencement, every Notice to Owner, every release and every payment record.
• Match releases to notices. Every party who sent a Notice to Owner should provide a release.
• Consider joint checks for large material deliveries, payable to the contractor and the supplier, if your contractor agrees.
• Don't pay ahead of the work. See contractor deposits in Florida.
• Watch the Notice of Commencement's expiration on long projects.

If a lien is filed

Don't ignore it. Contact your contractor, the party who filed it and, if needed, an attorney. Florida law has procedures and deadlines for enforcing and contesting liens, and many are resolved once the underlying payment is made. If your licensed contractor caused the loss, the Homeowners' Construction Recovery Fund may be an option after you've pursued the contractor.

To build these protections into your project from the start, use our renovation contract checklist.