How Can You Protect Your Property From a Construction Lien?
A construction lien, also known as a mechanic’s lien, is a security interest in a property. Contractors, subcontractors and individuals who provide materials or labor in an effort to improve a property may be able to seek a construction lien under certain circumstances. Specifically, if these parties did not receive full and fair payment for their contribution to the project, they may be able to get a lien on the property. Liens are very powerful legal tools. If you are a property owner, you absolutely do not want to deal with a lien being placed on your property. If a contractor is currently seeking a lien on your property or if a lien has already been placed on it, you need to contact an experienced West Palm Beach construction litigation attorney today to discuss your legal options.
Tips to Help Protect Your Home or Business
Construction liens are governed by Florida law. Under the statutes, liens can only be placed on a property in certain circumstances. By taking proper precautions when working with contractors, Florida property owners can dramatically reduce the risk that they will end up in a dispute that might cause them to face a lien. If you are working with a contractor on a construction project, the following three tips will help you keep your property free and clear from liens:
- You should obtain a list of all subcontractors: Many complex construction projects involve many different levels of contractors. It is likely that the lead contractor, meaning the contractor that you actually deal with directly, will outsource at least some of the work involved in your project. In the event that any of the subcontractors do not get paid, they could also potentially take action against your property. The first step of protecting yourself is understanding exactly who is working on your property.
- You must file a Notice of Commencement: In Florida, you should file a Notice of Commencement form before you begin work on a construction or renovation project. This form is filed with your local building permit authority. Essentially, it will outline some basic information about your project. By filing this form, you will substantially reduce the chances that you will face costly litigation.
- You should always get release of lien waivers after paying: Whenever you make any payment, you need to obtain a release of lien from the contractor. As was mentioned previously, it is important to protect yourself from subcontractor action as well. You should receive a release of lien waiver from all of the contractors, subcontractors and material suppliers that have contributed to your construction project. These waivers will help protect your property from legal action if any sort of dispute arises between the contractors.
Contact Our Office Today
Many different problems can arise during a construction. At Pike & Lustig, LLP, our West Palm Beach commercial litigation lawyers have helped many property owners and businesses through construction-related disputes. If you any questions or concerns about construction liens, please do not hesitate to contact our team today. Our firm proudly represents businesses throughout South Florida, including in Palm Beach Gardens and Wellington.
