Why use a Notice of Commencement in Florida?

As an owner of real estate, you must record a Notice of Commencement when a contractor, subcontractor, material provider or laborer starts a work or improvement on your property.

The Notice of Commencement is set forth under the Florida mechanic's lien law. The lien statute aims to provide notices to contractors, owners, subcontractors, material men and laborers so each has everybody else's notice that they're working on the job and therefore may have potential mechanic's lien claims. By recording the Notice of Commencement, such notice is made available to all interested parties. Therefore building permits will usually not be issued to contractors unless the notice of commencement was properly recorded.

The Notice of Commencement must contain a description sufficient for identification of the real property, a description of the improvement, name and address of the owner, and information to identify the lender and surety, if any. This allows potential lien claimants to identify the owner and everyone else with a potential interest in the real estate. Property owners are required to file the notice before the work or improvement begins, although if the work does not commence within 30 days of recording the notice, it is considered void. The filing date is important, because any future liens relate back to this date.

Except for improvements for which the direct contract price is $2,500 or less, a property owner or the owner's authorized agent must record a notice of commencement in the clerk's office and post either a certified copy thereof or a notarized statement that the notice of commencement has been filed for recording along with a copy.

An owner may terminate the effective period of a Notice of Commencement when the construction is complete, or after construction ceases before completion and all contractors and sub-contractor's (lienors) have been paid, by filing a Notice of Termination of Notice of Commencement.

Each case is unique, so contact a Florida-licensed attorney familiar with the lien law with specific questions or for complex situations.

Back to Florida