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Why is the start date so important on a Notice of Commencement in Florida?

FloridaNotice of Commencement

On a Florida Notice of Commencement why is the start date so important? It has something to do with filing a lien but what exactly? If I file a lien shouldn't it be for work/material of the date is was done, which might be months after the start date. Thanks

1 reply

Dec 16, 2019

Florida Notice of Commencement

A Florida Notice of Commencement (NOC) is a mechanism to protect property owners from mechanics liens and potentially paying twice for the same work. Property owners on projects over $2,500 are required to file an NOC within 90 days before the project begins, to gain this protection. Since this must be filed before the start of the project, it's important that the start date is included on the notice itself. As far as the impact a FL NOC has on mechanics lien rights of contractors and subs, the affect is twofold.

Priority of Lien Rights

One way an NOC can affect mechanics lien rights is that it will determine the priority of the debt secured by the mechanics lien if the property is foreclosed. When a Notice of Commencement is filed, the priority of all mechanics liens filed on the property will relate back to the date the NOC was filed. Meaning all claimants will have equal priority and the amount of individual claimants may be limited; as they all must share equal priority. If the owner fails to file, then the priority of mechanics lien is based on the date the lien was filed.

Amount of Recovery Available

As stated, above, a Notice of Commencement helps protect owners against double payment. However, this only works if the owner complies with the NOC requirements, and then makes "proper payments." A proper payment is made if the owner releases payment in exchange for lien waivers from any party who provided a Notice to Owner. If the owner is making proper payments, and lien is subsequently filed on the project, the amount will be limited to the amount of money that has yet to be paid by the owner on the project; essentially converting Florida mechanics liens into "unpaid balance" liens.

Additional Resources on FL Notices of Commencement

For a more in depth discussion on A Florida Notice of Commencement from two opposing views; head over to:
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