The following new legislation took effect on October 1, 2003:

a) Mandatory provisions regarding Florida’s Lien Law for direct contracts between an Owner and a Contractor for improvements of real property consisting of single or multiple family dwellings up to and including four units.

b) New Warning language in the Notice to Owner form, alerting owners that liens may be filed against their property by unpaid contractors, subcontractors and sub-subcontractors.

c) New Affidavit of Final Payment Form

d) New Warning language in the Claim of Lien form alerting the owner that a lien has been placed on his/her property and what steps can be taken to shorten the time the lien can be considered legally valid.

e) The Building Department issuing a construction permit must mail the property owner a statement explaining the owner’s rights upon a lienor’s failure to serve a Notice to Owner and the owner’s right to shorten the duration of lien by serving and recording a Notice of Contest of Lien

f) Permissive Inference of Misappropriation of Funds whenever a Claim of Lien is filed against a property and the general contractor has received sufficient payment for the construction but has failed, for a period of 45 days or more, to remit sufficient funds to pay off labor, services, or materials.

g)  DBPR must be notified when a contractor is charged with the willful filing of a fraudulent claim of lien, misappropriation of funds or making false statements for inducing payment. Upon notification, DBPR must promptly open an investigation on the project.

h) Lenders must provide a written warning statement regarding lien releases to prior to making any loan disbursements.

The new Florida Lien Law forms are now available here!