Homeowners: Watch Out For Liens After a Construction Project

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.

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