Monday, March 7, 2011

Warning! The Statute of Limitations for That Amended Lien May Not Be What You Thought.

In Florida, if you supply labor, services or materials to improve property, you may be entitled to a lien on that property. However, there are specific requirements for you to "perfect" your potential lien rights. One requirement is that you record your lien within ninety days of last performing work on (or providing materials to) the job. The lien acts as a cloud on the property title. Then, as a newly minted lienor, you have one year from recording the lien to file a foreclosure lawsuit.

If you are still within the ninety day period and something changes, Florida law allows you to record an amended claim of lien. Once you record an amended lien, however, things can get confusing fast. Notably, you still have to file suit within one year of the original claim of lien - not the date of the amended claim of lien! The only exception is if you amended your lien to change the date of final furnishing. Only then will the clock on your one year foreclosure deadline reset to the date of your amended lien.

Filing a claim of lien can be a tricky process. There are a plethora of minefields and legal shenanigans to maneuver. On top of that, the preparation of a claim of lien has been deemed to be the practice of law. Never hire a non-attorney to prepare your lien. You can prepare and file a lien on your own behalf. However, this is almost never recommended.

Once you think there may be an issue with payment on a job, you should contact a qualified attorney to determine your rights.

No comments:

Post a Comment