Bill Text: FL H0693 | 2010 | Regular Session | Introduced
Bill Title: Construction Bonds
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2010-04-30 - Died in Committee on Governmental Affairs Policy (EDCA) [H0693 Detail]
Download: Florida-2010-H0693-Introduced.html
HB 693 |
1 | |
2 | An act relating to construction bonds; amending s. 255.05, |
3 | F.S.; requiring that a surety record in the public records |
4 | a payment bond for a public works construction project; |
5 | requiring that the bond number be stated on the first page |
6 | of a bond; prohibiting the issuing authority for a |
7 | building permit or a private provider providing inspection |
8 | services from inspecting the property being improved until |
9 | the occurrence of certain events; providing that a payment |
10 | and performance bond is not required for certain |
11 | contracts; authorizing certain entities to exempt certain |
12 | contracts from the requirement for a payment and |
13 | performance bond; requiring that the clerk of court serve |
14 | a notice of contest of lien; amending s. 713.015, F.S.; |
15 | requiring that a contractor provide an owner with a |
16 | general statement of an owner's rights and |
17 | responsibilities under Florida's Construction Lien Law; |
18 | requiring that a signed copy of the statement be filed |
19 | with the building permit application; specifying the form |
20 | and content of the statement; deleting the requirement |
21 | that notice be included in the direct contract between the |
22 | contractor and the owner; amending s. 713.06, F.S.; |
23 | revising the form of a notice for liens of persons not in |
24 | privity; amending s. 713.09, F.S.; including units in |
25 | provisions relating to a single claim of lien; deleting |
26 | certain requirements relating to direct contracts; |
27 | amending s. 713.13, F.S.; providing for the expiration of |
28 | a notice of commencement; revising the form of a notice of |
29 | commencement; requiring the posting of a payment bond on a |
30 | job site; amending s. 713.135, F.S.; revising the warning |
31 | to the owner printed on certain permit cards; deleting a |
32 | requirement relating to the filing of a notice of |
33 | commencement before certain inspections; revising the |
34 | warning to the owner provided on a building permit form; |
35 | deleting provisions requiring the authority issuing a |
36 | building permit to provide certain statements and |
37 | information; creating s. 713.137, F.S.; prohibiting the |
38 | authority issuing a building permit or a private provider |
39 | providing inspection services from inspecting an |
40 | improvement until certain documents have been filed and |
41 | the information in the notice of commencement meets |
42 | certain standards; providing exceptions; amending s. |
43 | 713.16, F.S.; revising requirements for demands for a copy |
44 | of a construction contract and a statement of account; |
45 | authorizing a lienor who submits or mails a claim of lien |
46 | to the clerk for recording to make certain demands to an |
47 | owner for certain written statements; providing |
48 | requirements for such written demands; amending s. 713.18, |
49 | F.S.; providing additional methods by which certain items |
50 | may be served by mail; specifying information required on |
51 | certain written instruments under certain circumstances; |
52 | amending s. 713.22, F.S.; requiring that the clerk of |
53 | court serve a notice of contest of lien; amending s. |
54 | 713.23, F.S.; requiring that the clerk of court serve a |
55 | notice of contest of nonpayment; conforming cross- |
56 | references; amending s. 713.24, F.S.; requiring that the |
57 | clerk of court serve a copy of the certificate showing the |
58 | transfer of a lien and a copy of the security if the lien |
59 | is transferred to a security; providing an effective date. |
60 | |
61 | Be It Enacted by the Legislature of the State of Florida: |
62 | |
63 | Section 1. Subsection (1) and paragraph (a) of subsection |
64 | (2) of section 255.05, Florida Statutes, are amended to read: |
65 | 255.05 Bond of contractor constructing public buildings; |
66 | form; action by materialmen.- |
67 | (1) |
68 | state or any county, municipality |
69 | thereof, or other public authority or private entity, for the |
70 | construction of a public building, for the prosecution and |
71 | completion of a public work, or for repairs upon a public |
72 | building or public work shall |
73 | work or before recommencing the work after a default or |
74 | abandonment, |
75 | |
76 | |
77 | authorized to do business in this state as surety. |
78 | (a) A public entity may not require a contractor to secure |
79 | a surety bond under this section from a specific agent or |
80 | bonding company. |
81 | (b) The bond must state on its front page: the name, |
82 | principal business address, and phone number of the contractor, |
83 | the surety, the owner of the property being improved, and, if |
84 | different from the owner, the contracting public entity; the |
85 | contract number assigned by the contracting public entity; the |
86 | bond number assigned by the surety; and a description of the |
87 | project sufficient to identify it, such as a legal description |
88 | or the street address of the property being improved, and a |
89 | general description of the improvement. |
90 | (c) Such bond shall be conditioned upon the contractor's |
91 | performance of the construction work in the time and manner |
92 | prescribed in the contract and promptly making payments to all |
93 | persons defined in s. 713.01 who furnish labor, services, or |
94 | materials for the prosecution of the work provided for in the |
95 | contract. |
96 | (d) The contractor shall, upon issuance, record the |
97 | payment bond in the public records of the county in which the |
98 | improvement will be located. |
99 | (e)1. The issuing authority for the building permit, or a |
100 | private provider providing inspection services, may not inspect |
101 | the property being improved until: |
102 | a. The issuing authority has a copy of the contractor's |
103 | recorded payment bond on file; or |
104 | b. The contracting public entity has filed with the |
105 | issuing authority a notarized statement stating that the |
106 | contract is exempt from the requirement for a payment bond as |
107 | provided in this section. |
108 | 2. This paragraph does not apply to inspections for the |
109 | installation of temporary electrical service or other temporary |
110 | utility service, land clearing, or other preliminary site work. |
111 | (f) Any claimant may apply to the governmental entity |
112 | having charge of the work for copies of the contract and bond |
113 | and shall thereupon be furnished with a certified copy of the |
114 | contract and bond. The claimant has |
115 | against the contractor and surety for the amount due him or her, |
116 | including unpaid finance charges due under the claimant's |
117 | contract. Such action shall not involve the public authority in |
118 | any expense. |
119 | (g)1. A payment and performance bond is not required for a |
120 | contract with the state for $100,000 or less. |
121 | |
122 | |
123 | 2. |
124 | |
125 | municipality |
126 | may exempt a contract |
127 | |
128 | |
129 | 3. |
130 | Management Services may delegate to a state agency |
131 | authority to exempt |
132 | |
133 | requirement for a |
134 | |
135 | are |
136 | because of granting such exemption. The Department of Management |
137 | Services shall maintain information on the number of requests by |
138 | state agencies for delegation of authority to waive the bond |
139 | requirements by agency and project number and whether any |
140 | request for delegation was denied and the justification for the |
141 | denial. |
142 | (h) Any provision in a payment bond furnished for public |
143 | work contracts as provided by this subsection which restricts |
144 | the classes of persons as defined in s. 713.01 protected by the |
145 | bond or the venue of any proceeding relating to such bond is |
146 | unenforceable. |
147 | (i) |
148 | rules with respect to all contracts for $200,000 or less, to |
149 | provide: |
150 | 1. Procedures for retaining up to 10 percent of each |
151 | request for payment submitted by a contractor and procedures for |
152 | determining disbursements from the amount retained on a pro rata |
153 | basis to laborers, materialmen, and subcontractors, as defined |
154 | in s. 713.01. |
155 | 2. Procedures for requiring certification from laborers, |
156 | materialmen, and subcontractors, as defined in s. 713.01, prior |
157 | to final payment to the contractor that such laborers, |
158 | materialmen, and subcontractors have no claims against the |
159 | contractor resulting from the completion of the work provided |
160 | for in the contract. |
161 | |
162 | The state is |
163 | materialman, or subcontractor for any amounts greater than the |
164 | pro rata share as determined under this section. |
165 | (j) |
166 | price, except that for a contract in excess of $250 million, if |
167 | the state, county, municipality, political subdivision, or other |
168 | public entity finds that a bond in the amount of the contract |
169 | price is not reasonably available, the public owner shall set |
170 | the amount of the bond at the largest amount reasonably |
171 | available, but not less than $250 million. |
172 | 2. For construction-management or design-build contracts, |
173 | if the public owner does not include in the bond amount the cost |
174 | of design or other nonconstruction services, the bond may not be |
175 | conditioned on performance of such services or payment to |
176 | persons furnishing such services. Notwithstanding paragraph (h) |
177 | |
178 | from the classes of persons protected by the bond. |
179 | (2)(a)1. If a claimant is no longer furnishing labor, |
180 | services, or materials on a project, a contractor or the |
181 | contractor's agent or attorney may elect to shorten the |
182 | |
183 | enforce any claim against a payment bond must |
184 | |
185 | office a notice in substantially the following form: |
186 | |
187 | |
188 | |
189 | |
190 | To: ...(Name and address of claimant)... |
191 | |
192 | You are notified that the undersigned contests your notice |
193 | of nonpayment, dated _______________, __________, and served on |
194 | the undersigned on _______________, __________, and that the |
195 | time within which you may file suit to enforce your claim is |
196 | limited to 60 days after the date of service of this notice. |
197 | DATED on _______________, __________. |
198 | |
199 | Signed:...(Contractor or Attorney)... |
200 | |
201 | The claim of any claimant upon whom such notice is served and |
202 | who fails to institute a suit to enforce his or her claim |
203 | against the payment bond within 60 days after service of such |
204 | notice shall be extinguished automatically. The clerk shall |
205 | serve |
206 | the address shown in the notice of nonpayment or most recent |
207 | amendment thereto and shall certify to such service on the face |
208 | of such notice and record the notice. |
209 | |
210 | 2. A claimant, except a laborer, who is not in privity |
211 | with the contractor shall, before commencing or not later than |
212 | 45 days after commencing to furnish labor, services, or |
213 | materials for the prosecution of the work, furnish the |
214 | contractor with a written notice that he or she intends to look |
215 | to the bond for protection. A claimant who is not in privity |
216 | with the contractor and who has not received payment for his or |
217 | her labor, services, or materials shall deliver to the |
218 | contractor and to the surety written notice of the performance |
219 | of the labor or delivery of the materials or supplies and of the |
220 | nonpayment. The notice of nonpayment may be served at any time |
221 | during the progress of the work or thereafter but not before 45 |
222 | days after the first furnishing of labor, services, or |
223 | materials, and not later than 90 days after the final furnishing |
224 | of the labor, services, or materials by the claimant or, with |
225 | respect to rental equipment, not later than 90 days after the |
226 | date that the rental equipment was last on the job site |
227 | available for use. Any notice of nonpayment served by a claimant |
228 | who is not in privity with the contractor which includes sums |
229 | for retainage must specify the portion of the amount claimed for |
230 | retainage. An |
231 | may not be instituted against the contractor or the surety |
232 | unless both notices have been given. Notices required or |
233 | permitted under this section may be served in accordance with s. |
234 | 713.18. A claimant may not waive in advance his or her right to |
235 | bring an action under the bond against the surety. In any action |
236 | brought to enforce a claim against a payment bond under this |
237 | section, the prevailing party is entitled to recover a |
238 | reasonable fee for the services of his or her attorney for trial |
239 | and appeal or for arbitration, in an amount to be determined by |
240 | the court, which fee must be taxed as part of the prevailing |
241 | party's costs, as allowed in equitable actions. The time periods |
242 | for service of a notice of nonpayment or for bringing an action |
243 | against a contractor or a surety shall be measured from the last |
244 | day of furnishing labor, services, or materials by the claimant |
245 | and shall not be measured by other standards, such as the |
246 | issuance of a certificate of occupancy or the issuance of a |
247 | certificate of substantial completion. |
248 | Section 2. Section 713.015, Florida Statutes, is amended |
249 | to read: |
250 | 713.015 General statement of owner's rights and |
251 | responsibilities |
252 | (1) For any direct contract |
253 | owner and a contractor, related to improvements to real property |
254 | consisting of single or multiple family dwellings up to and |
255 | including four units, the contractor must provide the owner with |
256 | a copy of the signed and dated general statement of an owner's |
257 | rights and responsibilities under Florida's Construction Lien |
258 | Law as described in subsection (2), which must be |
259 | |
260 | |
261 | |
262 | with the original building permit application pursuant to s. |
263 | 713.135. If the contractor applies for the building permit, the |
264 | contractor must provide to the owner a signed and dated copy of |
265 | the general statement of an owner's rights and |
266 | responsibilities. |
267 | (2) The general statement of an owner's rights and |
268 | responsibilities under Florida's Construction Lien Law must be |
269 | in substantially the following form, must include the |
270 | information contained in the following form, and must include a |
271 | copy of a notice of commencement as provided in s. 713.13(1), a |
272 | waiver and release of lien upon progress payment as provided in |
273 | s. 713.20(4), a waiver and release of lien upon final payment as |
274 | provided in s. 713.20(5), a request for sworn statement of |
275 | account as provided in s. 713.16, and a contractor's final |
276 | payment affidavit as provided in s. 713.06(3): |
277 | |
278 | |
279 | |
280 | |
281 | |
282 | ABOUT THIS DOCUMENT.-Florida law requires your contractor |
283 | to provide you with this document and the attached statutory |
284 | forms when you are contracting to make improvements to real |
285 | property. Therefore, it is critical that you have some |
286 | understanding of Florida's construction lien and payment laws |
287 | and take appropriate steps to protect your investment and |
288 | fulfill your obligations to those who provide labor and |
289 | materials for your project. |
290 | |
291 | You must acknowledge that you have received and read this |
292 | document by signing on the signature page. The signed original |
293 | document must be delivered to the building permit authority, |
294 | along with the building permit application for your project. |
295 | Your building permit application will not be processed unless |
296 | this signed document is in the file. You need to retain a copy |
297 | of the filed document and the attached statutory forms so that |
298 | you can follow the procedures described in the document and |
299 | identify the proper statutory forms as you proceed with your |
300 | construction project. If your contractor applies for the |
301 | building permit, he or she must provide you with a copy of the |
302 | signed and dated general statement of an owner's rights and |
303 | responsibilities. |
304 | |
305 | THE FLORIDA CONSTRUCTION LIEN LAW.-Part I of chapter 713, |
306 | Florida Statutes (F.S.), governs private construction projects |
307 | in this state. The complete text of this law can be found at |
308 | www.leg.state.fl.us. This general statement is intended as a |
309 | guide and does not take precedence over the language of |
310 | Florida's Construction Lien Law. |
311 | |
312 | Under this law, those who work on your property or provide |
313 | materials and services and who are not paid in full have a right |
314 | to enforce their claim for payment against your property. This |
315 | claim is known as a construction lien. If your contractor or a |
316 | subcontractor fails to pay subcontractors, sub-subcontractors, |
317 | or material suppliers, those people who are owed money may look |
318 | to your property for payment even if you have already paid your |
319 | contractor in full. If you fail to pay your contractor, your |
320 | contractor may also have a lien on your property. This means |
321 | that if a lien is filed, your property could be sold against |
322 | your will to pay for labor, materials, or other services that |
323 | your contractor or a subcontractor may have failed to pay. |
324 | |
325 | The law also provides procedures to protect owners and |
326 | guarantee that you will never have to pay more than the amount |
327 | of your contract if you make proper payments. Although the |
328 | construction lien law has many complexities, the steps owners |
329 | can take to protect themselves and establish a "proper payment |
330 | defense" are simple, but very important. |
331 | |
332 | STEP 1 - THE NOTICE OF COMMENCEMENT.-An owner is required |
333 | by law to complete, sign, and record in the public records an |
334 | accurate Notice of Commencement for all direct contracts that |
335 | exceed $2,500, which notice provides certain specified |
336 | information. The information provided in the recorded Notice of |
337 | Commencement is relied upon by all parties who provide labor and |
338 | materials to your project. A copy of the statutory Notice of |
339 | Commencement form, s. 713.13, F.S., is attached to this |
340 | document. |
341 | |
342 | If a lender is financing your project, the lender will |
343 | assist you in completing the Notice of Commencement and is |
344 | responsible for recording it in the public records. It is |
345 | critical that your Notice of Commencement be recorded after any |
346 | construction loan or mortgage documents are recorded. If you do |
347 | not have a lender, preparing and recording the Notice of |
348 | Commencement is your responsibility. The Notice of Commencement |
349 | must be recorded before commencing construction and posted on |
350 | your jobsite. For most projects, a copy of the recorded Notice |
351 | of Commencement must be submitted to the building permit |
352 | authority before the first building inspection. |
353 | |
354 | STEP 2 - MONITOR THE DOCUMENTS AND NOTICES YOU RECEIVE.- |
355 | Pick up your certified mail. Most lien notices are served by |
356 | certified mail and you need to know who is providing labor and |
357 | materials to your project. Section 713.18, F.S., provides that |
358 | any properly addressed notices that are returned to the sender |
359 | through no fault of the sender are considered served on the date |
360 | sent, so failing to claim certified mail only hurts you. |
361 | |
362 | If you expect to be absent for periods of time during your |
363 | project, you should have an attorney or other agent in a |
364 | position of trust who understands the law handle these details |
365 | for you. Make sure someone is receiving your mail and taking |
366 | steps to obtain the necessary lien releases before making |
367 | payments to your contractor. If you receive anything that you do |
368 | not understand, seek the assistance of an experienced |
369 | construction law attorney. |
370 | |
371 | STEP 3 - OBTAIN SIGNED LIEN WAIVERS EACH TIME YOU MAKE A |
372 | PAYMENT TO YOUR CONTRACTOR.-Each time you pay your contractor |
373 | you should obtain a Waiver and Release of Lien form from the |
374 | contractor and from anyone who serves you with a Notice to |
375 | Owner. Make sure that each release waives lien rights against |
376 | your project for work or materials furnished through the date of |
377 | the work or materials that your payment covers. This date is |
378 | probably not the date you are making the payment, but a date |
379 | before the payment date through which labor and materials have |
380 | been billed. |
381 | |
382 | UNDER FLORIDA LAW, YOU HAVE THE RIGHT TO WITHHOLD PAYMENTS |
383 | DUE TO THE CONTRACTOR UNTIL YOU HAVE BEEN PROVIDED WITH A |
384 | WRITTEN WAIVER AND RELEASE OF LIEN UPON PROGRESS PAYMENT FORM OR |
385 | A WRITTEN WAIVER AND RELEASE OF LIEN UPON FINAL PAYMENT FORM |
386 | SHOWING THAT THE LIENOR'S CLAIM FOR PAYMENT HAS BEEN PAID. |
387 | |
388 | There are two statutory Waiver and Release of Lien forms. |
389 | The signed Waiver and Release of Lien Upon Progress Payment |
390 | should be submitted by a contractor, subcontractor, or material |
391 | supplier each time you make a payment to your contractor. The |
392 | signed Waiver and Release of Lien Upon Final Payment should be |
393 | submitted by your contractor, a subcontractor, or material |
394 | supplier when they are finished furnishing all work or materials |
395 | for your project and have received final payment. For example, |
396 | when the plumber finishes all plumbing on your project and |
397 | receives final payment from the contractor, you should obtain a |
398 | Waiver and Release of Lien Upon Final Payment. Once you receive |
399 | a final waiver from a contractor, subcontractor, or material |
400 | supplier, you should not need another waiver unless they are |
401 | hired to do additional work. A copy of both statutory Waiver and |
402 | Release of Lien forms, s. 713.20, F.S., is attached to this |
403 | document. |
404 | |
405 | STEP 4 - OBTAIN A CONTRACTOR'S FINAL PAYMENT AFFIDAVIT |
406 | BEFORE YOU MAKE FINAL PAYMENT TO YOUR CONTRACTOR.-In addition to |
407 | obtaining Final Waiver and Release of Lien forms from the |
408 | contractor and anyone who has served you with a Notice to Owner, |
409 | you should obtain a Contractor's Final Payment Affidavit before |
410 | you make final payment to your contractor. This sworn affidavit |
411 | should reflect that everyone who supplied labor and materials on |
412 | your project has been paid in full or should list those |
413 | subcontractors and suppliers who are still owed money. Make sure |
414 | that anyone listed as not being paid in full is paid before |
415 | making final payment to your contractor. You have a right to |
416 | rely on the information contained in the sworn affidavit when |
417 | you make final payment to your contractor with respect to any |
418 | lienor who has not served a Notice to Owner. A copy of the |
419 | statutory Contractor's Final Payment Affidavit form, s. 713.06, |
420 | F.S., is attached to this document. |
421 | |
422 | IF YOU FOLLOW THESE FOUR SIMPLE STEPS, FLORIDA LAW WILL |
423 | PROTECT YOU AND YOU SHOULD NEVER HAVE TO PAY TWICE FOR THE SAME |
424 | LABOR OR MATERIALS. |
425 | |
426 | |
427 | |
428 | 1. Always hire a Florida-licensed contractor. You can |
429 | verify the license status of your contractor by accessing the |
430 | website of the Department of Business and Professional |
431 | Regulation at www.myflorida.com/dbpr and performing a licensee |
432 | search. You can check under an individual name or, if your |
433 | contractor is a company, under the business name and then check |
434 | to see who the qualifying licensee is for that company. |
435 | |
436 | 2. Make sure that your contractor has the proper workers' |
437 | compensation coverage, or an allowed workers' compensation |
438 | exemption, and carries sufficient builder's risk or commercial |
439 | liability insurance. The contractor should be able to provide |
440 | you with current, valid certificates of insurance from his or |
441 | her insurance agent. |
442 | |
443 | 3. Use caution before accepting an obviously low bid. If |
444 | it seems too good to be true, it probably is, and your |
445 | construction project may be in trouble before you even begin. |
446 | |
447 | 4. Some contractors require a reasonable deposit to cover |
448 | the cost of plans and permitting. This is an acceptable |
449 | practice. However, you should use caution before paying |
450 | substantial sums to a contractor in advance of the work being |
451 | performed. |
452 | |
453 | 5. At any time during the construction process if you need |
454 | contract or payment information from anyone providing labor, |
455 | services, or materials to your project, you have the right to |
456 | make a written request to them for a Sworn Statement of Account |
457 | to ascertain the nature of the work performed or to be |
458 | performed, the materials furnished or to be furnished, the |
459 | amounts paid or to be paid, or the amounts due or to become due |
460 | to them. The form for this written Request for Sworn Statement |
461 | of Account is attached to this statement. If you received a |
462 | Notice to Owner from the person to whom you wish to send such a |
463 | request, make sure you address the request to the person, |
464 | company, and address listed in the Notice to Owner. The request |
465 | must be served by you in accordance with lien law provisions |
466 | (usually by hand delivery, certified mail, or overnight |
467 | delivery) and you should make sure to request and keep the proof |
468 | of delivery. |
469 | |
470 | 6. If you receive documents or information that you do not |
471 | understand, consult an experienced construction law attorney. |
472 | |
473 | 7. Florida has a Homeowners' Construction Recovery Fund |
474 | that is funded through a portion of the building permit fees. |
475 | This fund helps consumers who have been harmed by a licensed |
476 | contractor. In order to be eligible to recover from this fund, |
477 | you must have complied with the proper payment procedures as |
478 | described in this document. For more information, contact the |
479 | Construction Industry Licensing Board at |
480 | www.myflorida.com/dbpr/pro/cilb. |
481 | |
482 | 8. You have the right to require that a contractor furnish |
483 | a payment bond so that the owner is exempt from the Construction |
484 | Lien Law. If there is a payment bond, a lienor must file a claim |
485 | on the payment bond for payment rather than file a lien on the |
486 | property. However, if you require a payment bond, understand |
487 | that the payment bond will likely increase the cost of your |
488 | construction. |
489 | |
490 | |
491 | |
492 | The undersigned owner(s) of Florida real property hereby |
493 | acknowledge that they are preparing to enter into a contract |
494 | with _____________________________________________for the |
495 | construction of real property improvements to the following- |
496 | described property ...(insert address or legal description)...: |
497 | |
498 | _________________________________________ |
499 | |
500 | _________________________________________ |
501 | |
502 | ...(Signature of Property Owner)......(Date)... |
503 | |
504 | ...(Signature of Property Owner)......(Date)... |
505 | |
506 | Attached Statutory Forms: |
507 | Notice of Commencement |
508 | Waiver and Release of Lien Upon Progress Payment |
509 | Waiver and Release of Lien Upon Final Payment |
510 | Request for Sworn Statement of Account |
511 | Contractor's Final Payment Affidavit |
512 | |
513 | |
514 | |
515 | |
516 | |
517 | |
518 | |
519 | |
520 | |
521 | |
522 | |
523 | |
524 | |
525 | |
526 | |
527 | |
528 | |
529 | |
530 | |
531 | |
532 | |
533 | |
534 | |
535 | (3) |
536 | bar the enforcement of a lien against a person who has not been |
537 | adversely affected. |
538 | (4) |
539 | affect the lien and bond rights of lienors who are not in |
540 | privity with the owner. This section does not apply when the |
541 | owner is a contractor licensed under chapter 489 or is a person |
542 | who created parcels or offers parcels for sale or lease in the |
543 | ordinary course of business. |
544 | Section 3. Paragraph (c) of subsection (2) of section |
545 | 713.06, Florida Statutes, is amended to read: |
546 | 713.06 Liens of persons not in privity; proper payments.- |
547 | (2) |
548 | (c) The notice may be in substantially the following form |
549 | and must include the information and the warning contained in |
550 | the following form: |
551 | |
552 | WARNING! FLORIDA'S CONSTRUCTION LIEN LAW ALLOWS SOME |
553 | UNPAID CONTRACTORS, SUBCONTRACTORS, AND MATERIAL |
554 | SUPPLIERS TO FILE LIENS AGAINST YOUR PROPERTY EVEN IF |
555 | YOU HAVE MADE PAYMENT IN FULL. |
556 | |
557 | UNDER FLORIDA LAW, YOUR FAILURE TO MAKE SURE THAT WE ARE PAID |
558 | MAY RESULT IN A LIEN AGAINST YOUR PROPERTY AND YOUR PAYING |
559 | TWICE. |
560 | |
561 | TO PROTECT YOURSELF, EACH TIME YOU MAKE A PAYMENT TO THE |
562 | CONTRACTOR, ASK YOUR CONTRACTOR TO PROVIDE YOU WITH A WRITTEN |
563 | WAIVER AND RELEASE OF LIEN FROM US. FOR ADDITIONAL INFORMATION, |
564 | REFER TO THE GENERAL STATEMENT OF OWNER'S RIGHTS AND |
565 | RESPONSIBILITIES WHICH WAS PROVIDED TO YOU BY YOUR CONTRACTOR AT |
566 | THE BEGINNING OF YOUR CONSTRUCTION PROJECT. |
567 | |
568 | |
569 | |
570 | |
571 | |
572 | To ...(Owner's name and address)... |
573 | |
574 | The undersigned hereby informs you that he or she has furnished |
575 | or is furnishing services or materials as follows: |
576 | |
577 | ...(General description of services or materials)... for the |
578 | improvement of the real property identified as ...(property |
579 | description)... under an order given by_______________. |
580 | |
581 | Florida law prescribes the serving of this notice and restricts |
582 | your right to make payments under your contract in accordance |
583 | with Section 713.06, Florida Statutes. |
584 | |
585 | |
586 | |
587 | |
588 | Under Florida's laws, those who work on your property or |
589 | provide materials and are not paid have a right to enforce their |
590 | claim for payment against your property. This claim is known as |
591 | a construction lien. |
592 | If your contractor fails to pay subcontractors or material |
593 | suppliers or neglects to make other legally required payments, |
594 | the people who are owed money may look to your property for |
595 | payment, EVEN IF YOU HAVE PAID YOUR CONTRACTOR IN FULL. |
596 | |
597 | PROTECT YOURSELF: |
598 | -RECOGNIZE that this Notice to Owner may result in a lien |
599 | against your property unless all those supplying a Notice to |
600 | Owner have been paid. |
601 | -LEARN more about the Construction Lien Law, Chapter 713, |
602 | Part I, Florida Statutes, and the meaning of this notice by |
603 | contacting an attorney or the Florida Department of Business and |
604 | Professional Regulation. |
605 | |
606 | |
607 | |
608 | |
609 | Copies to: ...(Those persons listed in Section 713.06(2)(a) and |
610 | (b), Florida Statutes)... |
611 | |
612 | The form may be combined with a notice to contractor given under |
613 | s. 255.05 or s. 713.23 and, if so, may be entitled "NOTICE TO |
614 | OWNER/NOTICE TO CONTRACTOR." |
615 | Section 4. Section 713.09, Florida Statutes, is amended to |
616 | read: |
617 | 713.09 Single claim of lien.-A lienor may |
618 | record only one claim of lien covering his or her entire demand |
619 | against the real property when the amount demanded is for labor |
620 | or services or material furnished for more than one improvement |
621 | |
622 | sufficient even though the improvement is for one or more |
623 | improvements located on separate lots, parcels, units, or tracts |
624 | of land. If materials to be used on one or more improvements on |
625 | separate lots, parcels, units, or tracts of land |
626 | |
627 | by the person with whom the materialman contracted, other than |
628 | the site of the improvement, the delivery to the place |
629 | designated is prima facie evidence of delivery to the site of |
630 | the improvement and incorporation in the improvement. The single |
631 | claim of lien may be limited to a part of multiple lots, |
632 | parcels, or tracts of land and their improvements or may cover |
633 | all of the lots, parcels, units, or tracts of land and |
634 | improvements. |
635 | |
636 | |
637 | |
638 | Section 5. Section 713.13, Florida Statutes, is amended to |
639 | read: |
640 | 713.13 Notice of commencement.- |
641 | (1)(a) Except for an improvement that is exempt pursuant |
642 | to s. 713.02(5), an owner or the owner's authorized agent before |
643 | actually commencing to improve any real property, or |
644 | recommencing completion of any improvement after default or |
645 | abandonment, whether or not a project has a payment bond |
646 | complying with s. 713.23, shall record a notice of commencement |
647 | in the clerk's office and forthwith post either a certified copy |
648 | thereof or a notarized statement that the notice of commencement |
649 | has been filed for recording along with a copy thereof. The |
650 | notice of commencement shall contain the following information: |
651 | 1. A description sufficient for identification of the real |
652 | property to be improved. The description should include the |
653 | legal description of the property and also should include the |
654 | street address and tax folio number of the property if available |
655 | or, if there is no street address available, such additional |
656 | information as will describe the physical location of the real |
657 | property to be improved. |
658 | 2. A general description of the improvement. |
659 | 3. The name and address of the owner, the owner's interest |
660 | in the site of the improvement, and the name and address of the |
661 | fee simple titleholder, if other than such owner. |
662 | 4. The name and address of the contractor. |
663 | 5. The name and address of the surety on the payment bond |
664 | under s. 713.23, if any, and the amount of such bond. |
665 | 6. The name and address of any person making a loan for |
666 | the construction of the improvements. |
667 | 7. The name and address within the state of a person other |
668 | than himself or herself who may be designated by the owner as |
669 | the person upon whom notices or other documents may be served |
670 | under this part; and service upon the person so designated |
671 | constitutes service upon the owner. |
672 | (b) The owner |
673 | person in addition to himself or herself to receive a copy of |
674 | the lienor's notice as provided in s. 713.06(2)(b), and if he or |
675 | she does so, the name and address of such person must be |
676 | included in the notice of commencement. |
677 | (c) A notice of commencement expires: |
678 | 1. Ninety days after the day of the final furnishing of |
679 | all labor, services, and materials required by the direct |
680 | contract, including any change orders; or |
681 | 2. On the effective date of a notice of termination that |
682 | has been served and recorded. |
683 | |
684 | |
685 | |
686 | |
687 | |
688 | |
689 | |
690 | (d) A notice of commencement must be in substantially the |
691 | following form: |
692 | |
693 | Permit No._____ Tax Folio No._____ |
694 | |
695 | State of_____ |
696 | County of_____ |
697 | |
698 | The undersigned hereby gives notice that improvement will be |
699 | made to certain real property, and in accordance with Chapter |
700 | 713, Florida Statutes, the following information is provided in |
701 | this Notice of Commencement. |
702 | 1. Description of property: ...(legal description of the |
703 | property, and street address if available).... |
704 | 2. General description of improvement:_____. |
705 | 3. Owner information:_____. |
706 | a. Name and address:_____. |
707 | b. Interest in property:_____. |
708 | c. Name and address of fee simple titleholder (if other |
709 | than Owner):_____. |
710 | 4.a. Contractor: ...(name and address).... |
711 | b. Contractor's phone number:_____. |
712 | 5. Surety ...(a copy of the payment bond is attached, if |
713 | the project is bonded).... |
714 | a. Name and address:_____. |
715 | b. Phone number:_____. |
716 | c. Amount of bond: $_____. |
717 | 6.a. Lender: ...(name and address).... |
718 | b. Lender's phone number:_____. |
719 | 7.a. Persons within the State of Florida designated by |
720 | Owner upon whom notices or other documents may be served as |
721 | provided by Section 713.13(1)(a)7., Florida Statutes: ...(name |
722 | and address).... |
723 | b. Phone numbers of designated persons:_____. |
724 | 8.a. In addition to himself or herself, Owner designates |
725 | _______________ of _______________ to receive a copy of the |
726 | Lienor's Notice as provided in Section 713.13(1)(b), Florida |
727 | Statutes. |
728 | b. Phone number of person or entity designated by |
729 | owner:_____. |
730 | 9. This notice of commencement expires 90 days after the |
731 | day of the final furnishing of all labor, services, and |
732 | materials required by the direct contract, including any change |
733 | orders, or on the effective date of a notice of termination. |
734 | |
735 | |
736 | |
737 | |
738 | WARNING TO OWNER: |
739 | |
740 | |
741 | |
742 | |
743 | POSTED ON THE JOB SITE BEFORE THE FIRST INSPECTION. IF YOU |
744 | INTEND TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER OR AN |
745 | ATTORNEY BEFORE COMMENCING WORK OR RECORDING YOUR NOTICE OF |
746 | COMMENCEMENT. |
747 | |
748 | Under penalty of perjury, I declare that I have read the |
749 | foregoing notice of commencement and that the facts stated |
750 | therein are true to the best of my knowledge and belief. |
751 | |
752 | ...(Signature of Owner or Owner's Authorized |
753 | Officer/Director/Partner/Manager)... |
754 | |
755 | ...(Signatory's Title/Office)... |
756 | |
757 | The foregoing instrument was acknowledged before me this _____ |
758 | day of _____, ...(year)..., by ...(name of person)... as |
759 | ...(type of authority, . . . e.g. officer, trustee, attorney in |
760 | fact)... for ...(name of party on behalf of whom instrument was |
761 | executed).... |
762 | |
763 | ...(Signature of Notary Public - State of Florida)... |
764 | |
765 | ...(Print, Type, or Stamp Commissioned Name of Notary Public)... |
766 | |
767 | Personally Known _____ OR Produced Identification _____ |
768 | |
769 | Type of Identification Produced_______________ |
770 | |
771 | |
772 | |
773 | |
774 | |
775 | |
776 | |
777 | |
778 | (e) A copy of any payment bond must be attached at the |
779 | time of recordation of the notice of commencement. The failure |
780 | to attach a copy of the bond to the notice of commencement when |
781 | the notice is recorded negates the exemption provided in s. |
782 | 713.02(6). However, if a payment bond under s. 713.23 exists but |
783 | was not attached at the time of recordation of the notice of |
784 | commencement, the bond may be used to transfer any recorded lien |
785 | of a lienor except that of the contractor by the recordation and |
786 | service of a notice of bond pursuant to s. 713.23(2). The notice |
787 | requirements of s. 713.23 apply to any claim against the bond; |
788 | however, the time limits for serving any required notices shall |
789 | begin running from the later of the time specified in s. 713.23 |
790 | or the date the notice of bond is served on the lienor. |
791 | (f) The giving of a notice of commencement is effective |
792 | upon the filing of the notice in the clerk's office. |
793 | (g) The owner must sign the notice of commencement and no |
794 | one else may be permitted to sign in his or her stead. |
795 | |
796 | |
797 | |
798 | (2) |
799 | constitute a lien, cloud, or encumbrance on real property, but |
800 | gives constructive notice that claims of lien under this part |
801 | may be recorded and may take priority as provided in s. 713.07. |
802 | The posting of a copy does not constitute a lien, cloud, or |
803 | encumbrance on real property, nor actual or constructive notice |
804 | of any of them. |
805 | (3) |
806 | constructing improvements described in s. 713.04. |
807 | (4) |
808 | the effective period may be amended to |
809 | |
810 | add information that was omitted from the original notice. |
811 | However, in order to change contractors, a new notice of |
812 | commencement or notice of recommencement must be executed and |
813 | recorded. |
814 | (b) The amended notice must identify the official records |
815 | book and page where the original notice of commencement is |
816 | recorded, and a copy of the amended notice must be served by the |
817 | owner upon the contractor and each lienor who serves notice |
818 | before or within 30 days after the date the amended notice is |
819 | recorded. |
820 | (5) |
821 | |
822 | notice of commencement is not effectual in law or equity against |
823 | a conveyance, transfer, or mortgage of or lien on the real |
824 | property described in the notice, or against creditors or |
825 | subsequent purchasers for a valuable consideration, after the |
826 | expiration of |
827 | commencement. |
828 | (6) |
829 | construction funds to the contractor, record the notice of |
830 | commencement in the clerk's office as required by this section; |
831 | however, the lender is not required to post a certified copy of |
832 | the notice at the construction site. The posting of the notice |
833 | at the construction site remains the owner's obligation. The |
834 | failure of a lender to record the notice of commencement as |
835 | required by this subsection renders the lender liable to the |
836 | owner for all damages sustained by the owner as a result of the |
837 | failure. Whenever a lender is required to record a notice of |
838 | commencement, the lender shall designate the lender, in addition |
839 | to others, to receive copies of notices to owner. This |
840 | subsection does not give any person other than the owner a claim |
841 | or right of action against a lender for failure to record a |
842 | notice of commencement. |
843 | Section 6. Section 713.135, Florida Statutes, is amended |
844 | to read: |
845 | 713.135 Notice of commencement and applicability of lien.- |
846 | (1) When any person applies for a building permit, the |
847 | authority issuing such permit shall: |
848 | (a) Require the applicant to submit the signed and dated |
849 | general statement of an owner's rights and responsibilities |
850 | under Florida's Construction Lien Law as provided in s. 713.015 |
851 | for any single-family or multifamily dwelling up to and |
852 | including four units. A building permit application may not be |
853 | processed unless the signed document is in the file. |
854 | (b) |
855 | than 14-point, capitalized, boldfaced type: "WARNING TO OWNER: |
856 | IF YOU FAIL |
857 | MAY PAY |
858 | PROPERTY. A NOTICE OF COMMENCEMENT, AND THE CONTRACTOR'S PAYMENT |
859 | BOND IF THE PROJECT IS BONDED, MUST BE RECORDED AND POSTED ON |
860 | THE JOB SITE BEFORE THE FIRST INSPECTION. IF YOU INTEND TO |
861 | OBTAIN FINANCING, CONSULT WITH YOUR LENDER OR AN ATTORNEY BEFORE |
862 | RECORDING YOUR NOTICE OF COMMENCEMENT." |
863 | (c) |
864 | owner of the real property upon which improvements are to be |
865 | constructed copies of the general statement of an owner's rights |
866 | and responsibilities under Florida's |
867 | |
868 | |
869 | |
870 | the attached statutory forms. The issuing authority may make the |
871 | general statement and forms available in printed form, on the |
872 | Internet, or both. |
873 | |
874 | |
875 | |
876 | |
877 | |
878 | |
879 | |
880 | |
881 | |
882 | |
883 | |
884 | |
885 | |
886 | |
887 | |
888 | |
889 | |
890 | |
891 | |
892 | |
893 | |
894 | |
895 | |
896 | |
897 | |
898 | |
899 | |
900 | |
901 | |
902 | |
903 | |
904 | |
905 | |
906 | |
907 | |
908 | |
909 | |
910 | |
911 | |
912 | |
913 | |
914 | |
915 | |
916 | |
917 | |
918 | (d) Verify that the name and address of the owner, the |
919 | name of the contractor, and the location or address of the |
920 | property being improved which is contained in the certified copy |
921 | of the notice of commencement is consistent with the information |
922 | in the building permit application. |
923 | (e) Provide the recording information from the official |
924 | public records in which the notice of commencement and payment |
925 | bond, if any, are recorded to any person upon request. |
926 | |
927 | |
928 | |
929 | |
930 | |
931 | |
932 | |
933 | |
934 | |
935 | |
936 | |
937 | |
938 | |
939 | |
940 | (f) |
941 | recorded as a condition of the application for, or processing or |
942 | issuance of, a building permit. |
943 | |
944 | |
945 | (2) An issuing authority under subsection (1) is not |
946 | liable in any civil action for the failure of the person whose |
947 | property is subject to attachment to receive or to be delivered |
948 | the general statement of an owner's rights and responsibilities |
949 | under Florida's |
950 | |
951 | |
952 | Lien Law as provided in s. 713.015. |
953 | (3) An issuing authority under subsection (1) is not |
954 | liable in any civil action for the failure to verify that a |
955 | certified copy of the recorded notice of commencement has been |
956 | filed in accordance with this section. |
957 | (4) The several boards of county commissioners, municipal |
958 | councils, or other similar bodies may by ordinance or resolution |
959 | establish reasonable fees for furnishing, upon request, copies |
960 | of the forms and the printed statement provided in paragraph |
961 | (1)(a) |
962 | to be paid by the applicant for each permit in addition to all |
963 | other costs of the permit |
964 | |
965 | |
966 | |
967 | |
968 | |
969 | |
970 | |
971 | |
972 | |
973 | (5) In addition to any other information required by the |
974 | authority issuing the permit, each building permit application |
975 | must contain: |
976 | (a) The name and address of the owner of the real |
977 | property; |
978 | (b) The name and address of the contractor; |
979 | (c) A description sufficient to identify the real property |
980 | to be improved; and |
981 | (d) The number or identifying symbol assigned to the |
982 | building permit by the issuing authority, which number or symbol |
983 | must be affixed to the application by the issuing authority. |
984 | (6)(a) In addition to any other information required by |
985 | the authority issuing the permit, the building permit |
986 | application must be in substantially the following form: |
987 | |
988 | |
989 | |
990 | |
991 | Owner's Name___________________________ |
992 | Owner's Address___________________________ |
993 | Fee Simple Titleholder's Name (If other than |
994 | owner)___________________________ |
995 | Fee Simple Titleholder's Address (If other than |
996 | owner)___________________________ |
997 | City___________________________ |
998 | State_______________ Zip_______________ |
999 | Contractor's Name___________________________ |
1000 | Contractor's Address___________________________ |
1001 | City___________________________ |
1002 | State_______________ Zip_______________ |
1003 | Job Name___________________________ |
1004 | Job Address___________________________ |
1005 | City____________________ County_______________ |
1006 | Legal Description___________________________ |
1007 | Bonding Company___________________________ |
1008 | Bonding Company Address___________________________ |
1009 | City____________________ State_______________ |
1010 | Architect/Engineer's Name___________________________ |
1011 | Architect/Engineer's Address___________________________ |
1012 | Mortgage Lender's Name___________________________ |
1013 | Mortgage Lender's Address___________________________ |
1014 | |
1015 | Application is hereby made to obtain a permit to do the |
1016 | work and installations as indicated. I certify that no work or |
1017 | installation has commenced prior to the issuance of a permit and |
1018 | that all work will be performed to meet the standards of all |
1019 | laws regulating construction in this jurisdiction. I understand |
1020 | that a separate permit must be secured for ELECTRICAL WORK, |
1021 | PLUMBING, SIGNS, WELLS, POOLS, FURNACES, BOILERS, HEATERS, |
1022 | TANKS, and AIR CONDITIONERS, etc. |
1023 | |
1024 | OWNER'S AFFIDAVIT: I certify that all the foregoing |
1025 | information is accurate and that all work will be done in |
1026 | compliance with all applicable laws regulating construction and |
1027 | zoning. |
1028 | |
1029 | WARNING TO OWNER: IF YOU FAIL |
1030 | NOTICE OF COMMENCEMENT, YOU MAY PAY |
1031 | FOR IMPROVEMENTS TO YOUR PROPERTY. A NOTICE OF COMMENCEMENT, AND |
1032 | THE CONTRACTOR'S PAYMENT BOND IF THE PROJECT IS BONDED, MUST BE |
1033 | RECORDED AND POSTED ON THE JOB SITE BEFORE THE FIRST INSPECTION. |
1034 | |
1035 | IF YOU INTEND TO OBTAIN FINANCING, CONSULT WITH YOUR LENDER |
1036 | OR AN ATTORNEY BEFORE COMMENCING WORK OR RECORDING YOUR NOTICE |
1037 | OF COMMENCEMENT. |
1038 | |
1039 | |
1040 | |
1041 | STATE OF FLORIDA |
1042 | COUNTY OF _____ |
1043 | |
1044 | Sworn to (or affirmed) and subscribed before me this _____ |
1045 | day of _____, ...(year)..., by ...(name of person making |
1046 | statement).... |
1047 | |
1048 | |
1049 | |
1050 | |
1051 | |
1052 | Personally Known _____ OR Produced Identification _____ |
1053 | |
1054 | Type of Identification Produced_______________ |
1055 | |
1056 | |
1057 | |
1058 | STATE OF FLORIDA |
1059 | COUNTY OF _____ |
1060 | |
1061 | Sworn to (or affirmed) and subscribed before me this _____ |
1062 | day of _____, ...(year)..., by ...(name of person making |
1063 | statement).... |
1064 | |
1065 | |
1066 | |
1067 | |
1068 | |
1069 | Personally Known _____ OR Produced Identification _____ |
1070 | |
1071 | Type of Identification Produced_______________ |
1072 | |
1073 | |
1074 | |
1075 | Contractor's State Certification or Registration No._____ |
1076 | |
1077 | Contractor's Certificate of Competency No.__________ |
1078 | |
1079 | APPLICATION APPROVED BY |
1080 | ____________________Permit Officer |
1081 | (b) Consistent with the requirements of paragraph (a), an |
1082 | authority responsible for issuing building permits under this |
1083 | section may accept a building permit application in an |
1084 | electronic format, as prescribed by the authority. Building |
1085 | permit applications submitted to the authority electronically |
1086 | must contain the following additional statement in lieu of the |
1087 | requirement in paragraph (a) that a signed, sworn, and notarized |
1088 | signature of the owner or agent and the contractor be part of |
1089 | the owner's affidavit: |
1090 | |
1091 | OWNER'S ELECTRONIC SUBMISSION STATEMENT: Under penalty of |
1092 | perjury, I declare that all the information contained in this |
1093 | building permit application is true and correct. |
1094 | (c) An authority responsible for issuing building permit |
1095 | applications which accepts building permit applications in an |
1096 | electronic format shall provide public Internet access to the |
1097 | electronic building permit applications in a searchable format. |
1098 | (7) This section applies to every municipality and county |
1099 | in the state which now has or hereafter may have a system of |
1100 | issuing building permits for the construction of improvements or |
1101 | for the alteration or repair of improvements on or to real |
1102 | property located within the geographic limits of the issuing |
1103 | authority. |
1104 | Section 7. Section 713.137, Florida Statutes, is created |
1105 | to read: |
1106 | 713.137 Prerequisites to inspection of improvements; |
1107 | exceptions.- |
1108 | (1) The authority issuing a building permit or a private |
1109 | provider providing inspection services may not inspect the real |
1110 | property being improved unless: |
1111 | (a) The following documents have been filed with the |
1112 | issuing authority: |
1113 | 1.a. A certified copy of the recorded notice of |
1114 | commencement; or |
1115 | b. A notarized statement that the notice of commencement |
1116 | has been filed for recording, along with a copy of the notice. |
1117 | 2.a. A copy of the contractor's recorded payment bond; or |
1118 | b. A notarized statement of the contractor or owner |
1119 | stating that a payment bond was not required. |
1120 | 3. A signed copy of the general statement of owner's |
1121 | rights and responsibilities under Florida's Construction Lien |
1122 | Law, if required by s. 713.015. |
1123 | (b) The information in the notice of commencement filed |
1124 | with the issuing authority is consistent with the building |
1125 | permit application, complete, and legible. |
1126 | (2) This section does not apply to inspections of the |
1127 | following improvements: |
1128 | (a) The installation of temporary electrical service or |
1129 | other temporary utility service, land clearing, or other |
1130 | preliminary site work. |
1131 | (b) Improvements pursuant to a direct contract in an |
1132 | amount of $5,000 or less. |
1133 | (c) The repair or replacement of a heating or air- |
1134 | conditioning system pursuant to a direct contract in an amount |
1135 | of $7,500 or less. |
1136 | (d) The installation of a solar hot water system pursuant |
1137 | to a direct contract of $7,500 or less. |
1138 | Section 8. Section 713.16, Florida Statutes, is amended to |
1139 | read: |
1140 | 713.16 Demand for copy of contract and statements of |
1141 | account; form.- |
1142 | (1) A copy of the contract of a lienor or owner and a |
1143 | statement of the amount due or to become due if fixed or |
1144 | ascertainable thereon must be furnished by any party thereto, |
1145 | upon written demand of an owner or a lienor contracting with or |
1146 | employed by the other party to such contract. If the owner or |
1147 | lienor refuses or neglects to furnish such copy of the contract |
1148 | or such statement, or willfully and falsely states the amount |
1149 | due or to become due if fixed or ascertainable under such |
1150 | contract, any person who suffers any detriment thereby has a |
1151 | cause of action against the person refusing or neglecting to |
1152 | furnish the same or willfully and falsely stating the amount due |
1153 | or to become due for his or her damages sustained thereby. The |
1154 | information contained in such copy or statement furnished |
1155 | pursuant to such written demand is binding upon the owner or |
1156 | lienor furnishing it unless actual notice of any modification is |
1157 | given to the person demanding the copy or statement before such |
1158 | person acts in good faith in reliance on it. The person |
1159 | demanding such documents must pay for the reproduction thereof; |
1160 | and, if such person fails or refuses to do so, he or she is |
1161 | entitled only to inspect such documents at reasonable times and |
1162 | places. |
1163 | (2) The owner may serve in writing a demand of any lienor |
1164 | for a written statement under oath of his or her account showing |
1165 | the nature of the labor or services performed and to be |
1166 | performed, if any, the materials furnished, the materials to be |
1167 | furnished, if known, the amount paid on account to date, the |
1168 | amount due, and the amount to become due, if known, as of the |
1169 | date of the statement by the lienor. Any such demand to a lienor |
1170 | must be served on the lienor at the address and to the attention |
1171 | of any person who is designated to receive the demand in the |
1172 | notice to owner served by such lienor and must include a |
1173 | description of the project, including the names of the owner, |
1174 | the contractor, and the lienor's customer, sufficient for the |
1175 | lienor to properly identify the account in question. The failure |
1176 | or refusal to furnish the statement does not deprive the lienor |
1177 | of his or her lien if the demand is not served at the address of |
1178 | the lienor or directed to the attention of the person designated |
1179 | to receive the demand in the notice to owner. The failure or |
1180 | refusal to furnish the statement under oath within 30 days after |
1181 | the demand, or the furnishing of a false or fraudulent |
1182 | statement, deprives the person so failing or refusing to furnish |
1183 | such statement of his or her lien. If the owner serves more than |
1184 | one demand for statement of account on a lienor and none of the |
1185 | information regarding the account has changed since the lienor's |
1186 | last response to a demand, the failure or refusal to furnish |
1187 | such statement does not deprive the lienor of his or her lien. |
1188 | The negligent inclusion or omission of any information deprives |
1189 | the person of his or her lien to the extent the owner can |
1190 | demonstrate prejudice from such act or omission by the lienor. |
1191 | The failure to furnish a response to a demand for statement of |
1192 | account does not affect the validity of any claim of lien being |
1193 | enforced through a foreclosure case filed prior to the date the |
1194 | demand for statement is received by the lienor. |
1195 | (3) A request for sworn statement of account must be in |
1196 | substantially the following form: |
1197 | |
1198 | |
1199 | |
1200 | WARNING: YOUR FAILURE TO FURNISH THE REQUESTED STATEMENT, |
1201 | SIGNED UNDER OATH, WITHIN 30 DAYS OR THE FURNISHING OF A FALSE |
1202 | STATEMENT WILL RESULT IN THE LOSS OF YOUR LIEN. |
1203 | |
1204 | To: ...(Lienor's name and address)... |
1205 | |
1206 | The undersigned hereby demands a written statement under |
1207 | oath of his or her account showing the nature of the labor or |
1208 | services performed and to be performed, if any, the materials |
1209 | furnished, the materials to be furnished, if known, the amount |
1210 | paid on account to date, the amount due, and the amount to |
1211 | become due, if known, as of the date of the statement for the |
1212 | improvement of real property identified as ...(property |
1213 | description).... |
1214 | |
1215 | Name of contractor:_______________ |
1216 | |
1217 | Name of the lienor's customer (as specified in the lienor's |
1218 | Notice to Owner, if such notice has been served):_______________ |
1219 | |
1220 | |
1221 | |
1222 | (4) When a contractor has furnished a payment bond |
1223 | pursuant to s. 713.23, he or she may, when an owner makes any |
1224 | payment to the contractor or directly to a lienor, serve a |
1225 | written demand on any other lienor for a written statement under |
1226 | oath of his or her account showing the nature of the labor or |
1227 | services performed and to be performed, if any, the materials |
1228 | furnished, the materials to be furnished, if known, the amount |
1229 | paid on account to date, the amount due, and the amount to |
1230 | become due, if known, as of the date of the statement by the |
1231 | lienor. Any such demand to a lienor must be served on the lienor |
1232 | at the address and to the attention of any person who is |
1233 | designated to receive the demand in the notice to contractor |
1234 | served by such lienor. The failure or refusal to furnish the |
1235 | statement does not deprive the lienor of his or her rights under |
1236 | the bond if the demand is not served at the address of the |
1237 | lienor or directed to the attention of the person designated to |
1238 | receive the demand in the notice to contractor or does not |
1239 | include a description of the project, including the names of the |
1240 | owner, the contractor, and the lienor's customer as set forth in |
1241 | the lienor's notice to contractor, sufficient for the lienor to |
1242 | properly identify the account in question. The failure to |
1243 | furnish the statement within 30 days after the demand, or the |
1244 | furnishing of a false or fraudulent statement, deprives the |
1245 | person who fails to furnish the statement, or who furnishes the |
1246 | false or fraudulent statement, of his or her rights under the |
1247 | bond. If the contractor serves more than one demand for |
1248 | statement of account on a lienor and none of the information |
1249 | regarding the account has changed since the lienor's last |
1250 | response to a demand, the failure or refusal to furnish such |
1251 | statement does not deprive the lienor of his or her rights under |
1252 | the bond. The negligent inclusion or omission of any information |
1253 | deprives the person of his or her rights under the bond to the |
1254 | extent the contractor can demonstrate prejudice from such act or |
1255 | omission by the lienor. The failure to furnish a response to a |
1256 | demand for statement of account does not affect the validity of |
1257 | any claim on the bond being enforced in a lawsuit filed prior to |
1258 | the date the demand for statement of account is received by the |
1259 | lienor. |
1260 | (5)(a) Any lienor who submits or mails |
1261 | claim of lien to the clerk for recording may make |
1262 | on the owner for a written statement under oath showing: |
1263 | 1. The amount of the direct contract under which the lien |
1264 | was recorded; |
1265 | 2. The dates and amounts paid or to be paid by or on |
1266 | behalf of the owner for all improvements described in the direct |
1267 | contract; |
1268 | 3. The reasonable estimated costs of completing the direct |
1269 | contract under which the lien was claimed pursuant to the scope |
1270 | of the direct contract; and |
1271 | 4. If known, the actual cost of completion. |
1272 | (b) Any owner who does not provide the statement within 30 |
1273 | days after demand, or who provides a false or fraudulent |
1274 | statement, is not a prevailing party for purposes of an award of |
1275 | attorney's fees under s. 713.29. The written demand must include |
1276 | the following warning in conspicuous type in substantially the |
1277 | following form: |
1278 | WARNING: YOUR FAILURE TO FURNISH THE REQUESTED STATEMENT |
1279 | WITHIN 30 DAYS OR THE FURNISHING OF A FALSE STATEMENT WILL |
1280 | RESULT IN THE LOSS OF YOUR RIGHT TO RECOVER ATTORNEY FEES IN ANY |
1281 | ACTION TO ENFORCE THE CLAIM OF LIEN OF THE PERSON REQUESTING |
1282 | THIS STATEMENT. |
1283 | (6) Any written demand served on the owner shall include a |
1284 | description of the project, including the names of the |
1285 | contractor and the lienor's customer as set forth in the |
1286 | lienor's notice to owner, sufficient for the owner to properly |
1287 | identify the project in question. |
1288 | (7) |
1289 | "information" means the nature and quantity of the labor, |
1290 | services, and materials furnished or to be furnished by a lienor |
1291 | and the amount paid, the amount due, and the amount to become |
1292 | due on the lienor's account. |
1293 | Section 9. Section 713.18, Florida Statutes, is amended to |
1294 | read: |
1295 | 713.18 Manner of serving notices and other instruments.- |
1296 | (1) Service of notices, claims of lien, affidavits, |
1297 | assignments, and other instruments permitted or required under |
1298 | this part, or copies thereof when so permitted or required, |
1299 | unless otherwise specifically provided in this part, must be |
1300 | made by one of the following methods: |
1301 | (a) By actual delivery to the person to be served; if a |
1302 | partnership, to one of the partners; if a corporation, to an |
1303 | officer, director, managing agent, or business agent; or, if a |
1304 | limited liability company, to a member or manager. |
1305 | (b) By sending the same by common carrier delivery service |
1306 | or registered, global express guaranteed, or certified mail |
1307 | with postage prepaid, and |
1308 | with evidence of delivery, which may be in an electronic format. |
1309 | (c) |
1310 | |
1311 | improvement if service as provided by paragraph (a) or paragraph |
1312 | (b) cannot be accomplished |
1313 | (2) Notwithstanding subsection (1), service of |
1314 | to owner, a notice to contractor under s. 713.23, or a |
1315 | preliminary notice under s. 255.05 is |
1316 | |
1317 | |
1318 | |
1319 | |
1320 | of mailing if: |
1321 | (a) The notice is mailed by registered, global express |
1322 | guaranteed, or certified mail, with postage prepaid, to the |
1323 | person to be served at any of the addresses set forth in |
1324 | subsection (3). |
1325 | (b) The notice is mailed within 40 days after the date the |
1326 | lienor first furnishes labor, services, or materials. |
1327 | (c)1. The person who served the notice maintains a |
1328 | registered or certified mail log that shows the registered or |
1329 | certified mail number issued by the United States Postal |
1330 | Service, the name and address of the person served, and the date |
1331 | stamp of the United States Postal Service confirming the date of |
1332 | mailing; or |
1333 | 2. The person who served the notice maintains electronic |
1334 | tracking records generated through use of the United States |
1335 | Postal Service Confirm service or a similar service containing |
1336 | the postal tracking number, the name and address of the person |
1337 | served, and verification of the date of receipt by the United |
1338 | States Postal Service. |
1339 | (3)(a) Service of |
1340 | section is effective on the date of mailing if the instrument: |
1341 | 1. Was sent to the last address shown in the notice of |
1342 | commencement or any amendment thereto or, in the absence of a |
1343 | notice of commencement, to the last address shown in the |
1344 | building permit application, or to the last known address of the |
1345 | person to be served; and |
1346 | 2. Is returned as being "refused," "moved, not |
1347 | forwardable," or "unclaimed," or is otherwise not delivered or |
1348 | deliverable through no fault of the person serving the item |
1349 | |
1350 | (b) If the address information shown in the notice of |
1351 | commencement or any amendment to the notice, or in the absence |
1352 | of a notice of commencement, in the building permit application, |
1353 | is incomplete for purposes of mailing or delivery, the person |
1354 | serving the item may complete the address and properly format it |
1355 | according to United States Postal Service addressing standards |
1356 | using information obtained from the property appraiser or |
1357 | another public record or directory without affecting the |
1358 | validity of service under this section. |
1359 | (4) A notice served by a lienor on one owner or one |
1360 | partner of a partnership owning the real property |
1361 | |
1362 | |
1363 | |
1364 | notice to all owners and partners. |
1365 | Section 10. Section 713.22, Florida Statutes, is amended |
1366 | to read: |
1367 | 713.22 Duration of lien.- |
1368 | (1) A |
1369 | for a longer period than 1 year after the claim of lien has been |
1370 | recorded or 1 year after the recording of an amended claim of |
1371 | lien that shows a later date of final furnishing of labor, |
1372 | services, or materials, unless within that time an action to |
1373 | enforce the lien is commenced in a court of competent |
1374 | jurisdiction. A lien that has been continued beyond the 1-year |
1375 | period |
1376 | of an |
1377 | creditors or subsequent purchasers for a valuable consideration |
1378 | and without notice, unless a notice of lis pendens is recorded. |
1379 | (2) An owner or the owner's agent or attorney may elect to |
1380 | shorten the time prescribed in subsection (1) within which to |
1381 | commence an action to enforce any claim of lien or claim against |
1382 | a bond or other security under s. 713.23 or s. 713.24 by |
1383 | recording in the clerk's office a notice in substantially the |
1384 | following form: |
1385 | |
1386 | |
1387 | |
1388 | To: ...(Name and address of lienor)... |
1389 | |
1390 | You are notified that the undersigned contests the claim of lien |
1391 | filed by you on _____, ...(year)..., and recorded in _____ Book |
1392 | _____, Page _____, of the public records of _____ County, |
1393 | Florida, and that the time within which you may file suit to |
1394 | enforce your lien is limited to 60 days from the date of service |
1395 | of this notice. This _____ day of _____, ...(year).... |
1396 | |
1397 | |
1398 | |
1399 | The lien of any lienor upon whom such notice is served and |
1400 | who fails to institute a suit to enforce his or her lien within |
1401 | 60 days after service of such notice shall be extinguished |
1402 | automatically. The clerk shall serve |
1403 | of contest to the lien claimant at the address shown in the |
1404 | claim of lien or most recent amendment thereto and shall certify |
1405 | to such service on the face of such notice and record the |
1406 | notice. |
1407 | Section 11. Paragraph (e) of subsection (1) and |
1408 | subsections (2) and (4) of section 713.23, Florida Statutes, are |
1409 | amended to read: |
1410 | 713.23 Payment bond.- |
1411 | (1) |
1412 | (e) An |
1413 | may not be instituted or prosecuted against the contractor or |
1414 | surety unless both notices have been given. An |
1415 | |
1416 | against the surety on the bond under this section after 1 year |
1417 | from the performance of the labor or completion of delivery of |
1418 | the materials and supplies. The time period for bringing an |
1419 | action against the contractor or surety on the bond shall be |
1420 | measured from the last day of furnishing labor, services, or |
1421 | materials by the lienor. The time period may |
1422 | measured by other standards, such as the issuance of a |
1423 | certificate of occupancy or the issuance of a certificate of |
1424 | substantial completion. A contractor or the contractor's agent |
1425 | or attorney may elect to shorten the |
1426 | which an action to enforce any claim against a payment bond |
1427 | |
1428 | at any time after a notice of nonpayment, if required, has been |
1429 | served for the claim by recording in the clerk's office a notice |
1430 | in substantially the following form: |
1431 | |
1432 | |
1433 | |
1434 | |
1435 | To: ...(Name and address of lienor)... |
1436 | |
1437 | You are notified that the undersigned contests your notice |
1438 | of nonpayment, dated _____, _____, and served on the undersigned |
1439 | on _____, _____, and that the time within which you may file |
1440 | suit to enforce your claim is limited to 60 days from the date |
1441 | of service of this notice. |
1442 | DATED on _____, _____. |
1443 | |
1444 | Signed: ...(Contractor or Attorney)... |
1445 | |
1446 | The claim of any lienor upon whom the notice is served and |
1447 | who fails to institute a suit to enforce his or her claim |
1448 | against the payment bond within 60 days after service of the |
1449 | notice shall be extinguished automatically. The clerk shall |
1450 | serve |
1451 | address shown in the notice of nonpayment or most recent |
1452 | amendment thereto and shall certify to such service on the face |
1453 | of the notice and record the notice. |
1454 | |
1455 | (2) The bond shall secure every lien under the direct |
1456 | contract accruing subsequent to its execution and delivery, |
1457 | except that of the contractor. Every claim of lien, except that |
1458 | of the contractor, filed subsequent to execution and delivery of |
1459 | the bond shall be transferred to it with the same effect as |
1460 | liens transferred under s. 713.24. Record notice of the transfer |
1461 | shall be effected by the contractor, or any person having an |
1462 | interest in the property against which the claim of lien has |
1463 | been asserted, by recording in the clerk's office a notice in |
1464 | substantially the following form: |
1465 | |
1466 | |
1467 | |
1468 | To ...(Name and Address of Lienor)... |
1469 | |
1470 | You are notified that the claim of lien filed by you on _____, |
1471 | _____, and recorded in Official Records Book _____ at page _____ |
1472 | of the public records of _____ County, Florida, is secured by a |
1473 | bond, a copy being attached. |
1474 | |
1475 | |
1476 | |
1477 | The notice shall be verified. The clerk shall mail a copy |
1478 | of the notice to the lienor at the address shown in the claim of |
1479 | lien, or the most recent amendment to it; shall certify to the |
1480 | service on the face of the notice; and shall record the notice. |
1481 | The clerk shall receive the same fee as prescribed in s. 713.24 |
1482 | |
1483 | (4) The provisions of s. 713.24(7) |
1484 | apply to bonds under this section. |
1485 | Section 12. Section 713.24, Florida Statutes, is amended |
1486 | to read: |
1487 | 713.24 Transfer of liens to security.- |
1488 | (1) A |
1489 | by a |
1490 | which the lien is imposed or the contract under which the lien |
1491 | is claimed, from such real property to other security by |
1492 | (a) Depositing in the clerk's office a sum of money; |
1493 | (b) Filing in the clerk's office a bond executed as surety |
1494 | by a surety insurer licensed to do business in this state. |
1495 | (2) The security must |
1496 | the amount demanded in the |
1497 | the claim |
1498 | 25 percent of the amount demanded in the claim of lien, |
1499 | whichever is greater, to apply on any attorney's fees and court |
1500 | costs that may be taxed in any proceeding to enforce the |
1501 | lien. |
1502 | (3) The security |
1503 | to pay any judgment or decree that |
1504 | satisfaction of the lien |
1505 | |
1506 | (4) A |
1507 | clerk who receives other security for a lien: |
1508 | (a) Shall make and record a certificate showing the |
1509 | transfer of the lien from the real property to the security. The |
1510 | clerk |
1511 | of the bond, if the lien was transferred to a bond, on |
1512 | |
1513 | of lien |
1514 | |
1515 | recorded, the real property is |
1516 | the lien claimed, and the |
1517 | the other |
1518 | (b) May collect a service charge of no more than $20 for |
1519 | making and serving the certificate. The clerk may collect an |
1520 | additional charge of no more than $10 for each additional lien |
1521 | transferred to the security. The clerk shall receive the |
1522 | statutory service charges as prescribed in s. 28.24 for |
1523 | recording the certificate and approving the bond. |
1524 | (5) In the absence of allegations of privity between the |
1525 | lienor and the owner, and subject to any order of the court |
1526 | increasing the amount required for the lien transfer deposit or |
1527 | bond, no other judgment or decree to pay money may be entered by |
1528 | the court against the owner. |
1529 | |
1530 | |
1531 | |
1532 | |
1533 | |
1534 | |
1535 | |
1536 | (6) |
1537 | amount of any judgments or decrees rendered plus costs actually |
1538 | taxed shall be repaid to the party filing the same or her or his |
1539 | successor in interest. Any deposit of money shall be considered |
1540 | as paid into court and is |
1541 | law relative to payments of money into court and the disposition |
1542 | of same. |
1543 | (7) |
1544 | the property from which the lien was transferred may at any |
1545 | time, and any number of times, file a complaint in chancery in |
1546 | the circuit court of the county where such security is |
1547 | deposited, or file a motion in a pending action to enforce a |
1548 | lien, for an order to require additional security, reduction of |
1549 | security, change or substitution of sureties, payment of |
1550 | discharge thereof, or any other matter affecting the |
1551 | security. If the court finds that the amount of the deposit or |
1552 | bond in excess of the amount claimed in the claim of lien is |
1553 | insufficient to pay the lienor's attorney's fees and court costs |
1554 | incurred in the action to enforce the lien, the court must |
1555 | increase the amount of the cash deposit or lien transfer bond. |
1556 | |
1557 | exclusive jurisdiction in the circuit courts over transfer bond |
1558 | claims for nonpayment of an amount within the monetary |
1559 | jurisdiction of the county courts. |
1560 | (8) |
1561 | not commenced within the time specified in s. 713.22 or if it |
1562 | appears that the transferred lien has been satisfied of record, |
1563 | the clerk shall return the |
1564 | person depositing or filing the same, or the insurer. If a |
1565 | proceeding to enforce a lien is commenced in a court of |
1566 | competent jurisdiction within the time specified in s. 713.22 |
1567 | and, during such proceeding, the lien is transferred pursuant to |
1568 | this section or s. 713.13(1)(e), an action commenced within 1 |
1569 | year after the transfer, unless otherwise shortened by operation |
1570 | of law, in the same county or circuit court to recover against |
1571 | the security shall be deemed to have been brought as of the date |
1572 | of filing the action to enforce the lien, and the court has |
1573 | |
1574 | Section 13. This act shall take effect July 1, 2010. |
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