Under Florida's Lien Law, an owner may be liable for payment if the contractor fails to pay his suppliers and subcontractors. That means that an owner may have to pay twice for the same work.

A Claim of Lien is a validly recorded claim against the property for payment of the unpaid balance due. If the lienor successfully forecloses on the property, the property will be sold by judicial sale and the lienor will be paid from the proceeds of sale. The filing of a Claim of Lien is specifically authorized by Florida Statutes § 713.08 which reads, in part, as follows:

713.08 Claim of lien.
(3) The claim of lien shall be sufficient if it is in substantially the following form:
 

CLAIM OF LIEN State of _____  County of _____  Before me, the undersigned notary public, personally appeared _____, who was duly sworn and says that she or he is (the lienor herein) (the agent of the lienor herein _____), whose address is _____; and that in accordance with a contract with _____, lienor furnished labor, services, or materials consisting of _____ on the following described real property in _____ County, Florida: (Legal description of real property) owned by _____ of a total value of $_____, of which there remains unpaid $_____, and furnished the first of the items on _____, (year) , and the last of the items on _____, (year) ; and (if the lien is claimed by one not in privity with the owner) that the lienor served her or his notice to owner on _____, (year) , by _____; and (if required) that the lienor served copies of the notice on the contractor on _____, (year) , by _____ and on the subcontractor, _____, on _____, (year) , by _____.  (Signature)  Sworn to (or affirmed) and subscribed before me this _____ day of _____, (year) , by (name of person making statement) .  (Signature of Notary Public - State of Florida)  (Print, Type, or Stamp Commissioned Name of Notary Public)

Practical tips:

• If a Claim of Lien is filed against your property, speak with an experienced construction attorney immediately.
• You should not assume that the Claim of Lien is legally enforceable, and you should not assume that the amount claimed is valid.
• Remember that even if you pay the Claim of Lien in full, it is still possible that the Lienor may not pay his subcontractors and suppliers. Under Florida law, this could result in you having to pay twice (or even three or four times) for the same work. An experienced lawyer can protect your property from the filing of additional liens and can help you avoid having to pay for the same work more than once.
• If your contractor is having financial problems and is not paying the bills, get legal help right away. Don't assume that paying suppliers and subcontractors directly will protect your property from Liens. Oftentimes this practice will needlessly increase construction costs and will still result in Liens against your property.
• Never make any payments to anyone without first receiving a Release of Lien and a Sworn Affidavit stating that all persons performing work and delivering materials have been paid in full.
• Any agreement (even in writing) by a Contractor to satisfy a Claim of Lien filed by one of his subcontractor or sub-subcontractor is not enforceable against the Lienor. Simply put, your Contractor cannot agree on behalf of someone else to release their Claim of Lien.

If you have any questions, or need legal advise, please call us at (954) 229-1008.