For homeowners, home buyers, and contractors, understanding how to release liens in Florida is important. Read on to learn more about the process of clearing and releasing liens.
Property owners in Florida have various options for releasing liens:
The simplest way to remove a lien is to pay it off. Options include:
A release-of-lien form is an official document proving satisfaction of the debt, formally releasing the lien from the property.
Owners can transfer the lien away from the property onto a bond, a process known as bonding off a mechanics lien. This option is provided under Florida’s construction lien law in 713.24.
Bonding off or around a mechanic’s lien is not a simple or inexpensive process, making it uncommon.
This could involve arbitration, mediation, or informal discussions to reach a mutually agreeable settlement.
A mechanic’s lien has validity for one year. During this period, the claimant must take legal action to enforce the lien. If no legal steps are taken within this timeframe, the lien becomes unenforceable.
Choosing to wait for the lien to expire can benefit property owners or buyers. It means that the claimant loses the legal right to pursue a claim against the property. This strategy allows the property to become free from the encumbrance of the lien without direct payment or negotiation. After the expiration period, the property owner can request a lien release, providing a clear resolution without the legal enforceability of the lien.
If you suspect an illegal or bad-faith placement of the lien, filing a motion in court to request its removal is an option. This is applicable when clear evidence of fraud or coercion exists. If the court deems the lien invalid, an official order is issued for its removal from the property.
Florida homeowners facing issues due to an unreleased lien during a property sale have the right to pursue compensation for actual damages.
Releasing a mechanics lien in Florida is a crucial task for contractors, and it is not explicitly outlined when or with what penalties this action must occur in the state’s lien law. However, failing to release a lien can have significant repercussions for contractors.
Property owners often demand the removal of the lien, especially if the claim has been paid or has expired. Even an expired lien can cause complications for the owner and legal issues for the contractor. For instance, if it hinders property sales, the owner might pursue the contractor for actual damages.
To avoid such complications, it is generally considered good business practice to release a lien claim promptly by filling out a Florida Discharge of Lien form.
Florida Lien Search can help you with lien searches for your upcoming real estate purchase or sale. Contact us for more information.
