Does Florida require contractors to send a NTO in a residential remodel? I was told that if a NTO isn't filed within 45 days, there are no lien rights. Can you please advise?
3 replies
Jun 3, 2020
It depends. If you had a direct contract with the property owner, then you do not need to send a notice to owner. You have lien rights by virtue of improving the property and being in direct contractual privity with the owner. Your construction lien must be recorded within 90 days of that last day you are furnishing labor, materials, or services under the contract.
If you do not have a direct contract with the owner, meaning you are a subcontractor, then yes, you do have to send a notice to owner before you can file a lien. Notices to owner must be served within 45 days of first furnishing labor, materials, or services under the contract.
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Jun 3, 2020
Thank you so much Jason, that answered my question perfectly!
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Jun 3, 2020
I have read your inquiry; however, some very important information is missing. If you have a direct contract with the owner of the property (you are in privity) then you do not need to file a NTO. Florida Statutes 713.05 governs Liens of Persons in privity. There are no conditions precedent to filing your lien if you are in privity with the owner. You must file your lien no later than 90 days after the final furnishing of labor, services or materials. See Florida Statutes 713.08.
The NTO is used when you are a sub-contractor. The purpose is to put the owner on notice that they may be liable for paying twice if they pay the contractor and the contractor doesn’t pay the sub-contractor because ultimately the owner is liable to the sub-contractor.