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Closing a notice of commencement (NoC)?

Florida

I had work done on my home 9 months ago and the installer filed a NoC. Everything has been paid and the work was done within a week of filing. Now, I am trying to refinance my home and me lender is asking me about an outstanding NoC and is requiring that I fill out and notarize some forms to indicate that everything is done, but this seems unnecessary. What should my installer have done to complete the process, once all work was done? Thank you.

4 replies

Jun 29, 2020
Generally speaking, Notices of Commencement (NOCs) in Florida expire automatically after one year, although a longer period may be specified. There is no requirement for an NOC to be released, and there is no procedure for filing a “Notice of Completion” to signal the project’s conclusion. However, it’s understandable that a lender would want any potential loose ends tied up before disbursing funds on a loan, even if they don’t necessarily cloud the title of a property on their own. One avenue your lender may be pursuing is to ask you to fill out and record a Notice of Termination. While there are some requirements that need to be met for this document to be effective, once they are completed the Notice of Commencement will be nullified after a set time period has expired. If you have further questions, thoroughly reading the documents you received and speaking with your lender about what they are asking you to sign is always a good first step. While older NOCs aren’t usually a cause for alarm when it comes to a title search, a persnickety lender may require removal/cancellation of a notice yet to expire where work has been completed before giving the green light. If you are still unsure or are uncomfortable signing the documents provided by the bank, consulting an attorney versed in construction or mortgage lending and familiar with the details of the situation would be wise.
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Jun 29, 2020
Under Florida law, there is no specific requirement that a Notice of Commencement (NOC) be terminated or released. In fact, there is no statutory process in the state of Florida for the filing of a Notice of Completion. This may a case of the lender being overly cautious. In any case, what the lender is likely asking is for you to file a Notice of Termination. Although typically used to cancel and re-file a NOC when there is an error or mistake, this will also serve to "terminate the period of effectiveness of a notice of commencement." The requirements of which can be found under Fla. Stat. §713.132. Here is another resource you may find helpful:
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Jun 29, 2020
Thank you, both, for your quick and detailed response. I believe it's an overly cautious title company, which is based in Florida, too, so it's a bit odd. Overall, I wanted to make sure the contractor didn't miss something since the Notice of Termination requires a notorization and I don't really want to have to do that with the amount of COVID cases we're getting in South Florida. Looks like I'll have to go that route, though, unfortunately.
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Jun 29, 2020
One option that may be available, if you're concerned about COVID, is "RON" or Remote Online Notarization. The Florida Secretary of State has a published list of notaries authorized to perform remote notarization, and there are many service providers that offer technology to facilitate and perform these remote notarial acts. Researching each and ensuring that what they offer meets your requirements is paramount, of course, but a remote notary may be helpful if staying inside is preferable. Many states also have mobile notaries that can come to you and may be willing to honor some special requests. This option might be helpful, although more costly, than a notary at a bank/credit union, UPS Store, or attorney's office where one might encounter small crowds. Just like the above, though, it's important to do your research and ensure that the notary you select is able and willing to meet your needs.
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