Like other states, Florida allows contractors and subcontractors to record construction liens against homes and other real estate. While these laws are complicated, the idea is that the firm which built or improved a piece of real estate can take a lien on and ultimately sell the property to recover the value of their parts and labor.
These laws are supposed to protect those in the construction business against not getting paid for their work. Without the ability to record a lien, contractors and subcontractors would be left going to court over unpaid bills. The result would be that they would collect as little as pennies on every dollar they billed.
On the other hand, construction liens can harm innocent families and other well-intentioned property owners:
- A property owner may have faithfully paid their contractor, but if their contractor did not pay the subcontractors, the subcontractors can still record a lien against the homeowner’s property.
- If a person falls behind in payments to a contractor but then offloads their real estate, the new owner will be left dealing with the lien even though they had nothing to do with the construction project.
- A construction lien is supposed to protect contractors that perform their work as agreed. However, some contractors in the Tampa area may use a construction lien to pressure an owner who has legitimate concerns about the contractor’s quality of work. In extreme cases, a contractor may even try to record a lien for work they never finished or even started.
Homeowners who discover a construction lien against their property must act
A construction lien against a person’s home or business property is a serious legal matter.
Like other liens, a construction lien can tie up the sale of the property altogether, and the lien would have to be paid as part of a real estate closing.
More importantly, the contractor that holds the lien may attempt to foreclose on it. If they are successful, then the property will get sold out from under even an innocent owner and the contractor will take what they are owed following the foreclosure sale.
Florida’s construction lien laws are complicated, and they carry with them potentially serious consequences. Families and others who are dealing with a contractor dispute or other issue involving a construction lien should make sure they understand their legal options.