A seller recently remodeled a kitchen. The buyer is ready to close. Then the title search finds a lien from a subcontractor who says they were never paid. Construction liens are a common closing problem. Here is how a construction lien in Florida works and how it can be resolved.
What Is a Construction Lien?
In Florida, construction liens are governed by Chapter 713 of the Florida Statutes. Contractors, subcontractors and suppliers who improve a property may record a lien if they are not paid. The lien attaches to the property and stays with it.
Why It Matters at Closing
A lien clouds the title. Buyers and lenders usually will not close until it is released, bonded off or otherwise resolved.
Key Timing Rules
A claim of lien generally must be recorded within 90 days after the lienor’s final furnishing of labor or materials. Lienors who do not deal directly with the owner often must serve a notice to owner within a set time to protect their rights. A lien generally expires one year after recording unless a lawsuit to enforce it is filed, though this period can be shortened.
Ways to Resolve a Lien
- Pay and release. The amount owed is paid, and the lienor records a release.
- Escrow at closing. Funds may be held to cover the claim.
- Transfer to a bond. The lien can be moved from the property to a bond.
- Notice of contest. An owner can shorten the time to sue.
- Challenge in court. If the lien is invalid or overstated, it may be contested.
The Bottom Line
A construction lien can stall a closing, but there are clear ways to address it. Kearney Law assists with title services and closings across the Tampa Bay area.
*This article is general information about Florida law, not legal advice. Every case is different.*
