Construction liens can create significant headaches for property owners, particularly when they surface during a title search or refinancing process. Filed by contractors, subcontractors, or suppliers, these legal claims can stall transactions and leave property owners wondering: Is this lien still valid? This article explains Florida’s laws governing lien duration.
When Do Liens Come Up?
Imagine a homeowner preparing to sell their house, only to discover a lien during the title search. The lien, filed two years earlier by a contractor, claims unpaid amounts for a kitchen remodel. Alternatively, a homeowner seeking to refinance might find their application delayed due to an unresolved lien from a dispute over roofing work. In these scenarios, the validity of the lien becomes critical.
The One-Year Time Limit for Liens
Under Florida Statute § 713.22(1), a construction lien generally expires one year after it is recorded unless the lienor files a lawsuit to enforce the lien within that time. Also, if the lienor amended the lien to reflect additional work completed later, the one-year clock resets from the date of the amended lien’s recording.
For example, a contractor records a lien for a driveway project completed in January. The contractor does not file a lawsuit by January of the following year. In this case, the lien may be unenforceable after the one-year period unless an exception applies.
Recording a Notice of Lis Pendens
Even if the lienor files a lawsuit within the one-year period, the lien’s enforceability might depend on whether the lienor records a notice of lis pendens. This notice serves as a red flag to the general public, putting them on notice about potential issues with the property’s title.
Importantly, if the notice of lis pendens is not recorded, the lien may unenforceable against creditors or subsequent purchasers for valuable consideration and without notice. However, the lien may still be enforceable against others, such as buyers who were aware of the lien at the time of their purchase.
For example, suppose a contractor files a lawsuit to enforce a lien but neglects to record a notice of lis pendens. A buyer unaware of the lawsuit purchases the property. In this case, the lien may not be enforceable against the buyer. However, if the buyer had actual notice of the lien, enforcement may still be possible.
Shortening the Lien Period: The Notice of Contest
Property owners can take proactive steps to shorten the one-year enforcement period by recording a notice of contest of lien. Under § 713.22(2), this notice gives the lienor only 60 days to file a lawsuit. If the lienor fails to do so, the lien expires.
For instance, a homeowner discovers a lien while preparing to sell their house. To resolve the issue promptly, they record a notice of contest of lien. If the lienor does not file a lawsuit within 60 days, the lien is extinguished, likely clearing the title for sale.
Practical Takeaways
• For Property Owners: If a lien surfaces, investigate its timeline. If no lawsuit was filed within the one-year period, the lien may not be enforceable. If the lien is still within its one year lifetime, consult with your attorney and consider filing a notice of contest to expedite resolution.
• For Lienors: Timely action is critical. Filing a lawsuit within the one-year period and recording a notice of lis pendens ensures the lien’s enforceability against third parties.
Understanding Florida’s lien laws can help avoid delays and legal disputes. Whether you’re a property owner or a lienor, staying proactive about deadlines and legal requirements is important to protecting your interests.
DISCLAIMER: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.
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