What is a claim of lien

What is a claim of lien

Q.

What is a claim of lien?

A.

A claim of lien is essentially leverage against real property in Florida. It’s a claim — it’s usually a one or two page document that is recorded in the public records where that real property is located. A claim of lien affects the property that’s being improved, and it’s something that’s filed (recorded) by either a general contractor, subcontractor, materialman, or laborer.

There are strict deadlines that go with claims of lien, and there’s also prerequisites (often times) such as a Notice to Owner (NTO). Overall, a claim of lien is leverage against the property, and if it’s not paid off, a foreclosure of that lien can take place whereas the owner can ultimately lose the property if the claim of lien is upheld by a Court and not paid prior to a foreclosure sale.

[Legal point: In a construction lien foreclosure suit, reasonable attorney’s fees are typically awarded to the prevailing party, and as such, a judgment of foreclosure will likely include an award of attorney’s fees. The attorney’s fees therefore become part of the claim which must be paid by the owner.]