6 Ways to Lose Your Claim of Lien Rights
A claim of lien may be a contractor’s last resort, often filed at the eleventh hour in an attempt to protect monies due for work performed. But prepared in a rush or not filed the right way and without the proper follow-up, liens can be defective and ineffective. There are plenty of times when a construction lawyer receives a claim of lien to enforce, only to realize upon reviewing the lien that there are problems. Some missteps may be more obvious than others, and several can be fatal to the enforcement of a lien.
Here are 6 quick ways to lose your claim of lien:
- Not serving a Notice to Owner on any owner with whom you don’t have a direct contract.
- Not filing a separate lien for each direct contract.
- Failing to file suit to enforce your lien within 60 days of receiving a Notice of Contest of Lien.
- Misapplication of a partial payment of materials.
- Not furnishing a Statement of Account within 30 days of demand.
- Refusing to provide a list of subcontractors and suppliers who have a contract to furnish material or services.
Don’t make these mistakes. Know the law by downloading the #1 guide to Florida’s construction lien law, Sink or Swim: Navigating Florida’s Lien Law. You’ll learn when and how to record a construction lien that can be enforced.