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Which document I need in case a client doesn't pay

FloridaLien Releases

Good Afternoon My name is Elizabeth, we are going to do our first job, I don't know which type of lien we need in case the client doesn't pay, I have told something call notice to owner, I don't know the difference, will you please guide in the right direction? Thank you Elizabeth

1 reply

Oct 12, 2020

The answer depends upon what role you will play in the project. Will you (1) be contracting DIRECTLY with the property owner/lessee, or (2) be working as a SUBCONTRACTOR to a prime contractor? 

If #1, then all you would need to do is make sure you record a Claim of Lien in the county wherein the property is located no later than 90 days after the last date of work on the project.

If # 2, then there is an ADDITIONAL, first step required - you must SERVE (not record) a Notice to Owner (NTO) on the property owner within 45 days of beginning work (or delivering materials). If there is a bond in play, then your NTO can be combined with a Notice to Contractor (NTC) as well.

Notices to Owner and Notices to Contractor are fairly straightforward and can be done on your own (although you should take care to make sure they are done properly, and that the Notice of Commencement is reviewed to determine exactly WHO is designated to receive notices). However, Claims of Lien should be prepared by an attorney to make sure they are done properly.

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