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Will GC be able to file Mech Lien on this property Owner

FloridaMechanics LienRight to Lien

commercial multi unit rentals.... owner initiates renovation project with GC, and stipulates that new tenant will have his own build-out contract, and the owner will have a separate contract for his portions of work in numerous units as well as new tenants unit. Owner indicates one permit should be pulled to cover both contracts, and indicates in writing tenant should be billed for half of permitting. Owner lists the work to be done in the Lease agreement effective 7/1/19, stating each party is responsible for their part, lists the GC as the Contractor, and extends a lighting allowance as well. Owner signs contract with GC 7/4/19. On 7/15/19 Owner files Prohibition of Construction Liens.... does NOT inform GC. Two weeks later 7/22/19 Tenant signs contract with GC. Owner pays his first completion billing. 8/20/19 GC bills first billing to tenant.... tenant defaults. GC send NTO 8/29/19. September 13th Owner advises GC of Prohibition filing, and claims no responsibility. Owner demands GC continues working and pull permit regardless of tenant default, then terminates contract when GC refuses. Can't GC file lien on Owners property, as Owner directly consented to contracts, and obligated the tenant to do the work and use the GC in Lease terms.

1 reply

Oct 25, 2019
Let's break some aspects of Florida's mechanics lien statute into some simple concepts to help approach the issue of lien rights in the above situation.

Florida owner's can avoid lien liability when their lessee contracts for the work

A Florida property owner can avoid lien liability if their lessee is the one who contracts for the work being done. As you hint at above, they do this first through their lease provisions, then by recording that provision.

If a Florida owner contracts for the work themselves, they cannot avoid liability for liens on that work

Importantly: A Florida owner can't just record lease provisions to avoid lien liability for work that they, themselves, contract for. So, if an owner hires a contractor, then that owner's interest in the property is lienable - regardless of whether they've claimed they're not responsible. § 713.10(1) states that a lien will "extend to, and only to, the right, title, and interest of the person who contracts for the improvement..." So, while a lien against a lessee may be limited to the lessee's interest, if an owner contracts for the improvement of their own property, they can't avoid a lien by getting creative with their paperwork.

If an owner contracts for some work, and if a lessee contracts for some work, then the owner's work may still be lienable

In a situation where some work was contracted by an owner, then the work the owner contracts for should be subject to mechanics lien. If a lessee contracts for some work and the owner has properly recorded a nonresponsibility provision, then the work performed for the lessee will generally not give rise to lien rights against the owner's property for that specific work provided to the lessee.
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