florida can a lienor collect attorney fees for its lien claim? how much? what about on bonded jobs?

by Jordane Jaskolski 9 min read

The statute doesn’t allow for attorney fees, collection costs, or any other amount unrelated to the value of labor or materials you provide. However, Florida is one of the few states that expressly allows for the inclusion of “unpaid finance charges.”

Full Answer

How much are attorney's fees in a Florida lien case?

Nov 23, 2012 · Villages at Lake Lily Associates, LLC, 100 So.3d 243 (Fla. 5th DCA 2012), illustrates the challenges in recovering attorneys’ fees. In this case, a lienor recorded a claim of lien and filed a lien foreclosure action. However, instead of just suing to foreclose the lien, the lienor also sued for unjust enrichment and for an equitable lien ...

What is Florida's lien law?

Feb 24, 2020 · Fla. Stat., §713.08 (5). c. Who must receive service of the Claim of Lien. Next, after properly recording the construction lien in the county (or counties) wherein the relevant property lies, notice/service of the lien is necessary. Florida Statute, §713.08 (4) (c) provides “ [t]he claim of lien shall be served.

Is a construction lien fraudulent in Florida?

Jan 17, 2017 · A party that records a fraudulent lien can be subject to punitive damages, attorneys’ fees, and felony charges. Before making the fraudulent lien argument, one must know the burden of proof and Florida law on the subject. Fraudulent liens in Florida are governed by §713.31 of the Florida Statutes, which provides in pertinent part as follows:

What happens if a lienor fails to file a lawsuit?

8. Finance Charges. Finance charges may be included in a lien if provided in the lienor’s contract. 9. Substantial performance. a. A lienor who has fully performed its contract is entitled to a lien for the full contract amount. b. A lienor who has "substantially performed" its contract, is entitled to assert its lien for the full amount of ...

Can a subcontractor file a lien Florida?

FLORIDA'S CONSTRUCTION LIEN LAW ALLOWS SOME UNPAID CONTRACTORS, SUBCONTRACTORS, AND MATERIAL SUPPLIERS TO FILE LIENS AGAINST YOUR PROPERTY EVEN IF YOU HAVE MADE PAYMENT IN FULL. UNDER FLORIDA LAW, YOUR FAILURE TO MAKE SURE THAT WE ARE PAID MAY RESULT IN A LIEN AGAINST YOUR PROPERTY AND YOUR PAYING TWICE.

How do liens work in Florida?

A lien is valid for one year, unless a lienor files a lawsuit to enforce the lien prior to the expiration of the year. An owner has a right to file a Notice of Contest of Lien during the one-year period. Upon the filing of a Notice of Contest of Lien, a lienor must file a lawsuit to enforce the lien within 60 days.

Can an unlicensed contractor file a lien Florida?

In Florida, an unlicensed contractor will not have the right to file a lien if licensure is required for the type of work performed. If no license was required for the type of work performed, then being unlicensed will not prevent a claimant from filing a valid lien.Sep 4, 2018

How long does a contractor have to file a lien in Florida?

If the supplier contracts with the property owner, Florida does not require a preliminary notice. In Florida, the deadline to file a mechanics lien is 90 days from last furnishing labor or materials to the project.Sep 8, 2021

How long is a claim of lien valid in Florida?

one yearA lien is valid for one year, unless a lienor files a lawsuit to enforce the lien prior to the expiration of the year. An owner has a right to file a Notice of Contest of Lien during the one-year period. Upon the filing of a Notice of Contest of Lien, a lienor must file a lawsuit to enforce the lien within 60 days.May 15, 2017

What is a claim of lien Florida?

A claim of lien is a legal claim to property that operates as security against any amount of money or services owed to another person or entity. A claim of lien must be recorded in a public records office so that anyone else with a potential interest in the property has notice of the pending claim.

Does a release of lien need to be recorded in Florida?

Florida lien law does require that a release of lien be filed once the construction lien claim has been resolved, and it is something that the property owner will demand.Oct 1, 2018

Can a handyman file a lien in Florida?

It is not uncommon for property owners to refuse to pay contractors, subcontractors, laborers, or suppliers after they have already performed work improving the owner's property. Luckily, those individuals can turn to Florida's Construction Lien Law, found in Fla. Stat.Oct 14, 2019

How do you remove a construction lien in Florida?

As mentioned before, property owners can cancel a lien by filing a complaint that requires the contractor to show cause why their claim shouldn't be enforced or canceled. If the claimant fails to respond properly, the lien will be removed via court action.Aug 18, 2020

How much does it cost to put a lien on a house in Florida?

Filing your own lien in Florida has varying costs. Depending on the supporting documentation and length of your lien paperwork, it can cost as little as $10 for the first page and an additional $8.50 for each additional page. Find your local county recorder to view specific filing fees in each location.Oct 28, 2020

Who can lien a property in Florida?

Under §713.345, Florida Statutes, anyone who receives any payment on account oPersons entitled to construction liens. Material suppliers who contract, with the owner, a contractor, subcontractor or a sub-subcontractor; and Professional lienors.Sep 21, 2018

Who can put a lien on your house in Florida?

In Florida, according to Florida Statutes 55.10, anyone who properly files a lien can put a lien on your house. The person or entity filing the lien, whether via a judgment, order or decree, must file an affidavit.

What is the Florida Statutory Provisions?

D. Florida Statutory Provisions. §713.31 (1), Florida Statutes, provides a remedy to a lienor against the owner should the owner by fraud or collusion deprive or attempt to deprive the lienor of benefits or rights to which such lienor is entitled under the lien law of the State of Florida.

What is an unjust enrichment claim in Florida?

In certain very limited circumstances, Florida case law allows a person providing materials and/or labor which benefit a property owner to pursue an un just enrichment claim against the owner and/or the owner's property. As a general rule, a lienor may not, however, use an unjust enrichment theory to avoid such lienor's ...

What is a subcontractor?

Statutory definitions: 1. A "Subcontractor" is "a person other than a materialman or laborer who enters into a contract with a contractor for the performance of any part of such contractor's contract , including the removal of solid waste from the real property.

Can a lienor use an unjust enrichment theory?

As a general rule, a lienor may not, however, use an unjust enrichment theory to avoid such lienor's failure to comply with the requirements of the lien law. As outlined above, the lien law provides specific time deadlines which must be met in order to properly perfect a lien, and pursue the foreclosure of same.

Can a material supplier be entitled to a lien?

Thus, a material supplier to a material supplier would not be entitled to a lien. c. A material supplier who sells, materials "'over the counter" and not specifically designated for delivery to a particular project may not have a lien on the project, despite ultimate incorporation of the materials into 'the project. 5.

Can a subcontractor be a lien?

A subcontractor or sub-subcontractor who performs work which. is not within the scope of the contractor's direct contract may. not be entitled to a lien for that work since the only lienable services are those which are for a "part of such contractor's [or subcontractor's] contract.". 3.

Who is a lienor in Florida?

As used in Florida’s Construction Lien Law, a “ lienor ” is defined as a contractor, subcontractor, sub-subcontractor, laborer, materialman, or professional lienors (architects, landscape architects, interior designers, engineers, surveyors, and mappers) who “contracts with the owner, a contractor, a subcontractor, or a sub-subcontractor.”.

What is construction lien in Florida?

Stat. § 713.01. The term “ owner ” includes “a person who holds a legal or equitable interest in real property … and who enters into a contract for the improvement of the real property.” Fla. Stat. § 713.01 (22). The law applies to any private real property, defined as the “land that is improved and the improvement thereon, including fixtures.” Fla. Stat. § 713.01 (26).

How long does a lienor have to file a claim of lien?

A lienor who has complied with its Notice to Owner requirements and fails to recover a timely payment may lien the owner’s property to obtain payment by filing a “ Claim of Lien .” To perfect their lien rights, lienor’s must record a Claim of Lien in the public records of the county where the property is located within 90 days of the final furnishing of materials, labor, or work or at any time during performance. Fla. Stat. § 713.08 (5).

How long is a construction lien valid?

A construction lien is valid for 1 year after the Claim of Lien is filed “unless within that time an action to enforce the lien is commenced in a court of competent jurisdiction.” Fla. Stat. § 713.22 (1). If an action to enforce the lien is not commenced within one year of the date of recording, the lien will simply expire. Id. A lien remains in effect once an action to enforce it has commenced, and it is enforceable against creditors and subsequent purchasers if a lis pendens has also been recorded. Fla. Stat. § 713.22 (1).

What is attorney fees in Florida?

Generally, in the United States, attorney fees are the responsibility of each party, unless a statute or contract provides otherwise. One such statute is Florida’s Construction Lien Law, which provides for the recovery of attorney fees for the party at wins at trial. Fla. Stat. § 713.29. In many cases involving relatively low dollar amounts for the Claim of Lien, the attorneys’ fees can exceed the underlying claim. This allows people with relatively small claims to bring their cases to court.

What is laborer in real estate?

A “ laborer ,” is a person “other than an architect, landscape architect, engineer, surveyor and mapper, and the like who, under … contract, personally performs on the site of the improvement labor or services for improving real property and does not furnish materials or labor service of others .”.

Can a construction lien attach to real property?

Generally, a construction lien may attach to real property for any money owed for labor, services, or materials that improves the property. However, lienors must strictly follow complex statutory requirements or their lien rights may be lost. WMS Const., Inc., 762 So. 2d at 975.

What is lien law in Florida?

Florida’s lien law is an especially draconian area of the law. Filing a lien is an invaluable tool to help you as a contractor, sub-contractor or material man get paid on a construction job. It can also get you into trouble unless the statute is strictly followed.

What is the Florida statute for fraudulent liens?

Lien law in Florida is governed by Fla. Stat. § 713 while subsection 713.31 specifically deals with fraudulent liens.

What is a defense against a fraudulent lien?

Even if half the lien is valid, and the other half fraudulent, the defense stands against the entire lien. It is a complete defense to any action to enforce a lien under this part, or against any lien in any action in which the validity of the lien is an issue, that the lien is a fraudulent lien; and the court so finding is empowered to ...

What is a fraudulent lien?

Fraudulent liens are an area of the law that requires an extreme attention to detail. A lienor who isn’t paid on a job can make things much worse if he/she files a fraudulent lien. To avoid running afoul of these harsh penalties, you must educate yourself as to what you can claim on your lien.

Can a contractor file a lien on a contract?

The contractor could file a lien but not for the full contract price. The contractor can only lien for the amount which he actually has completed and is currently due – he cannot lien for the full contract price unless the work has been fully completed.

Is Sweetwater Homes of Citrus a fraudulent lien?

Sweetwater Homes of Citrus, Inc., the court interpreted the statute as having three ways that a lien could be fraudulent: [A] construction lien is considered to be fraudulent if the lienor (1) willfully exaggerates the amount of the lien claimed; or (2) willfully includes a claim for work not performed or materials not furnished for ...

What is a lienor in Florida?

Once your activity fits into one of those types of services, you are on the road to being known as a lienor. Pursuant to Florida law there are six categories of potential lienors. These include the Contractor; any Subcontractor; any Sub-subcontractor; any Laborer; any Materialman and any Professional Lienor.

Do you have to record a lien to be a lienor?

One does not have to record a Claim of Lien to be a lienor. The Act provides that anyone who has the right to file a Construction lien is a lienor. Previously we discussed what types of work might be liened. That consideration is a first step.

Does a materialman have a lien?

However, a materialman to a Materialman does not have lien ...