Unfolding in Southwest Florida is truly every homeowner’s nightmare. There, dozens of people thought they were buying their dream home. They worked with their contractor to make every detail just how they liked it.
The result was wonderful; it was exactly like they wanted it, and they paid their general contractor, thinking they were moving in.
Then, the nightmare started.
Late last year, the company closed, saying it was more than $11 million in debt. More than 200 subcontractors were not paid, and dozens of houses were not finished.
Now, those homeowners are facing foreclosure and having their property taken by subcontractors who have legally put a lien on the property in an attempt to be paid for their services and materials.
A construction lien on a home is a legal action allowed by state law. While homeowners going through the lien process want changes in Florida law, right now, a homeowner is responsible for making sure subcontractors are paid, even if they only signed a contract with the general contractor.
If a homeowner is not careful, they could end up losing their property, even if they did everything right!
The attorneys at The Orlando Law Group specialize in helping homeowners understand their rights in construction law in Orlando, Sanford, Winter Garden and Kissimmee. When it comes to homeowners facing construction liens, an attorney is essential.
Be Aware of Lien Laws with Any Project
The case in Southwest Florida involved new homes and projects costing hundreds of thousands of dollars. It’s one of the more extreme cases in construction lien laws.
But it can happen in any project that has subcontractors.
It could be a renovation of a bathroom or the addition of a mother-in-law suite. It might be a rental property that needs renovation or a vacation home update.
Unless your contractor is self-performing every part of the project, you must understand who can place a lien on your property to take ownership.
Remember, it’s not just the addition that is at risk. If a subcontractor places a lien on your property over non-payment on an addition, they may take the entire house if you don’t pay again.
However, the laws overseeing the use of construction liens are very specific and must be followed exactly, so homeowners should not be surprised about liens.
That said, even Florida State Statutes 713.06 suggests homeowners consult an attorney about construction liens when they start a construction project.
Watch the Mail for Notices
Florida law requires construction companies to notify any property owner of the ability to place a lien on the property if they are not paid.
The start of the notice should look like this:
WARNING! FLORIDA’S CONSTRUCTION LIEN LAW ALLOWS SOME UNPAID CONTRACTORS, SUBCONTRACTORS, AND MATERIAL SUPPLIERS TO FILE LIENS AGAINST YOUR PROPERTY EVEN IF YOU HAVE MADE PAYMENT IN FULL.
UNDER FLORIDA LAW, YOUR FAILURE TO MAKE SURE THAT WE ARE PAID MAY RESULT IN A LIEN AGAINST YOUR PROPERTY AND YOUR PAYING TWICE.
TO AVOID A LIEN AND PAYING TWICE, YOU MUST OBTAIN A WRITTEN RELEASE FROM US EVERY TIME YOU PAY YOUR CONTRACTOR.
The notice will always come by mail and must be sent no later than 45 days after commencement of the construction project.
Sounds simple, right?
It may not be.
While the law requires the company to send the lien to show proof of delivery, there is a significant loophole.
As long as the notice was mailed to the address on the notice of commencement, the lien if valid even if the notice is returned as being “refused,” “moved, not forwardable,” or “unclaimed,” or is otherwise not delivered or deliverable through no fault of the person serving the item, according to Florida Statutes.
The notice of commencement is required to have the property owner’s name and address, but what if you have moved? What if you have a P.O. box for a rental property? What if there is a typo in the notice?
It is not the responsibility of the subcontractor to make sure the address is correct or that someone is there to accept the mail.
Why a Law Firm is Essential in Construction Liens
While many things with a construction project can be handled by individuals, the construction lien is something you should always bring in an attorney to help.
Remember, a homeowner can do everything right, pay all their bills and think they are in the clear and then end up losing their house through no fault of their own.
By using an attorney as your designated representative, their contact information is included in a notice of commencement and the state statute requires the notification of the ability to file a lien to be sent to your representative as well.
Your attorney can inspect all notices, including the notice of commencement to ensure all laws are being followed. It can also help when final payments are due to ensure there are as few issues as possible.
It’s simple. When you are paying thousands of dollars for any improvement on your property, you want someone who has dealt with the legal requirements for construction liens on homeowners throughout their entire career.
In the next article, we’ll discuss the steps to take to minimize the chances of a construction lien being placed on your property.
The attorneys at The Orlando Law Group help with all types of legal issues for homeowners and property owners in Orlando, Waterford Lakes, Altamonte Springs, Winter Garden, Lake Nona, St. Cloud, Kissimmee, and throughout Central Florida.
If you have questions about anything discussed in this article or other legal matters, give our office a call at 407-512-4394 or fill out our online contact form to schedule a consultation to discuss your case. We have an office conveniently located at 12301 Lake Underhill Rd, Suite 213, Orlando, FL 32828, as well as offices in Seminole, Osceola and West Orange counties to assist you.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.
Last Updated on July 18, 2025 by The Orlando Law Group
