Homeowners and Subcontractor Liens

While most homeowners are provided an opportunity to shop for contractors to do work on their homes, they oftentimes have limited or no input into which subcontractor is retained to complete their tasks.  The problem with this is that if the subcontractor is paid by you but does not pay the subcontractor, conflicts arise and can cause liens to be placed on your home by the subcontractors.  In simple terms, you paid for the work, but the contractor kept the money.  Now, the subcontractor wants to be paid, and is coming to you.

Mandatory Warning in Florida Statute

Several years ago, the Florida legislature passed Section 713.015, Florida Statutes, which requires that a warning be included in bold, capitalized 12-point font on every contract between an owner and contractor for work exceeding $2,500.  The mandatory warning provides in part that “those work on your property or provide materials and services and are not paid in full have a right to enforce their claim for payment against your property.”

 Subcontractor's Lien

Many homeowners either building a new home or making improvements to their existing one read this mistakenly believe they’re not in danger as long as timely payments are made to the general contractor.  Unfortunately, this is not the case.  If your general contractor is deficient in paying the subcontractors, Florida law allows for the latter, with whom the homeowner may not have even met, to file a lien for work performed at the house and then foreclose on the lien if it’s not paid.  Notice must be given to the homeowner prior to any filing of a lien if so filed by someone not in direct contract with the homeowner.  Despite such notice, many homeowners fail to realize the potential consequences.  The result is that the homeowner must come out-of-pocket twice to pay what was already paid to the general contractor.  Of course, the general contractor will likely be liable for any duplicative monies paid to the subcontractor but the homeowner is left to deal with the pursuit of the claim against the general contractor and the defense of any liens sought to be enforced by subcontractors.

Releases of Lien

Be sure to avail yourself of protections such as demanding in contract that the general contractor provide releases of lien.  Do not take lightly any Notice to Owner and request documentation from your general contractor of any and all payments made to the subcontractors to ensure timeliness. If you have a situation requiring legal representation due a subcontractor’s lien, get your no-obligation, free case evaluation or contact Corless Zinober FL personal injury lawyers at 866-969-2889.