Preventing and Responding to Mechanic’s Liens in Florida

The use of a mechanic’s lien can cast a shadow over the relationship between a property owner and a construction contractor. Property owners who are currently building, repairing or improving properties in Florida would do well to explore strategies to both prevent the filing of a mechanic’s lien and effectively respond if one has already been placed on their property.

Understanding Mechanic’s Liens

A mechanic’s lien is a powerful tool that construction contractors wield to assert a legal claim against a property for the fees incurred during construction, improvement, maintenance, or repair. Property owners need to be proactive in safeguarding their interests and understanding the strategies to prevent and respond to mechanic’s liens.

Preventing Mechanic’s Liens

The most effective way to handle mechanic’s liens is to proactively reduce the possibility that they can be used in the first place. Here are a number or steps that can be taken to prevent liens from being used:

1. Incorporate Anti-Lien Clauses in Contracts: Include a clause in the construction contract that explicitly prohibits the use of mechanic’s liens. This contractual safeguard can deter contractors from pursuing this legal avenue.
2. Research Contractor History: Before entering into an agreement, research the contractor’s past jobs. Check if they have a history of placing mechanic’s liens. An established pattern may be a red flag.
3. Obtain Proof of Payments: Insist on written proof that all workers and suppliers involved in the project have been paid in full. This documentation can be crucial in preventing the basis for a mechanic’s lien.
4. Negotiate Payment Terms: Prior to the commencement of work, negotiate clear payment plans and terms with the contractor. This can help set expectations and reduce the likelihood of disputes leading to a mechanic’s lien.

“The most effective way to handle mechanic’s liens is to proactively reduce the possibility that they can be used in the first place.”

Reacting to Mechanics Liens

In the case that a lien cannot be prevented, there are ways to react to them that either force the hand of the lienor to defend the lien in court or potentially can lead to the lien being dismissed. These strategies include:

1. Filing a Contest of Lien: If a mechanic’s lien has been placed on your property, file a Contest of Lien document within one year of the lien being recorded. This action gives the lienor 60 days to enforce the lien in court, failing which the lien becomes invalid.
2. Requesting a Lien Release: File an official request to appeal for the release of the lien. This formal procedure is an avenue for property owners to challenge the validity of the lien.
3. Negotiating with the Contractor: Engage in negotiations with the contractor to settle the lien. Professional mediation and negotiation skills can be instrumental in reaching a fair resolution.

The Importance of Legal Counsel

Attempting to navigate the complexities of mechanic’s liens in Florida alone can be daunting. The laws governing these liens are intricate, and the strategies for prevention and response are best handled by experienced construction law attorneys. Enlisting the services of a skilled legal professional ensures that your rights as a property owner are protected and that you can confidently address mechanic’s liens with precision and expertise.

South Florida Law

When either taking measures to prevent liens from being placed on your property or preparing your paperwork to contest a mechanic’s lien, be sure to do so with the assistance of a local attorney who has extensive construction law experience. With South Florida Law, you benefit from both big firm resources and small firm attention to detail and service. We have the construction law experience and local knowledge necessary to protect your business’ interests.

Whether you are taking proactive action or reacting to a mechanic’s lien, reach out to South Florida Law today at (954) 900-8885 or via our contact form.