Real Estate Law Title

A mechanic’s lien is a common but easily preventable occurrence for many Florida property owners. This type of lien is filed against a property when a contractor fails to pay one of their suppliers, subcontractors or laborers for property improvements.

The mechanics lien is a cloud on the property’s title and can prevent or delay the sale or refinancing of the property until the mechanic’s lien is paid.

Often a mechanic’s lien is discovered long after it’s been filed in the public records, but by taking a few proactive measures in accordance with Florida’s Construction Lien Law, property owners can ensure their properties are protected from the burdens imposed by such mechanic’s liens.

Notice of Commencement

File a Notice of Commencement before beginning any home construction or remodeling project. Record the form with the Clerk of the Circuit Court in the county where the property being improved is located. Post a certified copy at the job site, too.

The Notice notes the property owner’s intent to begin improvements, the location of the property, description of the work and the amount of bond (if any). It also identifies the property owner, contractor, surety, lender and other pertinent information.

A property owner who fails to record a Notice of Commencement or incorrect information on the Notice could result in having to pay twice for the same work or materials.

Request a list of all subcontractors and suppliers who have a contract with the contractor to provide services or materials to the property.

Releases of Lien

Prior to making any payment, the property owner should receive a Release of Lien from every supplier, contractor and subcontractor, which covers the materials used and the work performed on the project. The Release of Lien is a written statement that removes the property from the threat of lien.

If the contract requires partial payments be made before the work is completed in full, the get a Partial Release of Lien covering all workers and materials used up to that point in time.

Before final payment, obtain an affidavit from the contractor that specifies all unpaid parties who performed labor or services, or provided materials to the property. Make sure the contractor obtains releases from all of these parties before making final payment.

Notice of Termination of Notice of Commencement

At the end of the project and after the contractor is paid in full and obtained all of the necessary Releases of Lien and affidavits as described above are obtained, file a Notice of Termination of Notice of Commencement with the Clerk of the Circuit Court in the county where the property being improved is located.

The information in this article is of a general nature only and is not intended to be relied upon as, nor a substitute for, specific professional advice. No responsibility for the loss occasioned to any purpose acting on or refraining from action as a result of any material in this publication can be accepted.

The hiring of a lawyer is an important decision that should not be based solely on advertisements. Before you decide, ask us to send you free written information about our qualifications and experience.

You’ll want to make sure that you get the legal help and advice you need from an experienced residential conveyancing solicitor if you’re looking to buy or sell property.

Here’s why you need a residential conveyancing solicitor, when you’re buying or selling property, and more about the services they provide.

It’s important that you instruct the right firm of residential conveyancing solicitors when you’re buying or selling a house. You’ll need to choose a firm that know about buying and selling property as opposed to solicitors who normally deal with other legal issues.

By telling you what to expect, and how long things take, your residential conveyancing solicitor can help put your mind at ease, and reassure that things are progressing according to plan.

Because your property is the probably the most expensive thing you will buy or sell, you’ll want to make sure that you leave nothing to chance, and that everything is legal.

You’ll want to be reassured that your solicitor knows what they are doing, that they can help you and ensure that you are getting value for money. You don’t want to be left in the dark, or have to chase up your solicitors yourself.

Some firms of residential conveyancing solicitors will be able to recommend certain local estate agents and qualified surveyors to you. This can help to speed up the buying or selling process, and ensure that you can buy or sell your home as quickly as possible.

The services of a residential conveyancing solicitor are also invaluable for landlords and tenants too. If you’re a landlord who’s tenants haven’t paid their rent, or are not sure what your rights are as a tenant, you’ll be able to get the legal help you need.

Buying and selling property is time consuming because different checks need to be carried out. These include checks to see whether the property can actually be bought or sold, and what the property deeds say. Surveys will also need to be carried to establish the condition of the building, and whether it’s actually worth the money. You’ll need to be kept informed of the status of these checks and surveys by your solicitor.

Maybe you’re thinking of moving to a smaller or larger property, and want to know if there are any legal implications that could affect you.

You might want to build a conservatory, or extension, and need planning permission, or help buying additional land. Your residential conveyancing solicitor will be able to help you.

When you’re looking for mortgage or insurance advice, you might get the information you need from your residential conveyancing solicitor as well a a financial or mortgage adviser.

Now you know more about the work of a residential conveyancing solicitor, if you’re buying or selling a home, you’ll know how they can help you, and what to expect.

When signing a rental contract, be careful to take the following simple steps to ensure that you are covered both financially and personally.

1. Take out your own insurance

It is not safe to assume that the landlord’s house insurance will cover theft of any of your personal possessions. More often than not the landlord’s insurance policy will only cover the buildings and his or her possessions. Check the position of your lease, but unless it clearly indicates that your landlord will be responsible for insurance of your personal possessions, you should therefore look to take out your own insurance policy for any valuable possessions that you will have in the property.

2. Check whether the property is safe

You should check and get assurances or certificates from the landlord that the property complies with the following regulations:

- Furniture and Furnishings (Fire) (Safety) Regulations 1988, amended in 1993

- Gas Safety (Installation and Use) Regulations 1998

- Smoke Detectors Act 1991 (if the property doesn’t have smoke alarms ask if they can be installed)

- Electrical Equipment (Safety) Regulations 1994.

You are also recommended to find out if the landlord has PAT checked (Portable Appliance Testing) the electrical appliances.

The regulations place a legal obligation on the landlord to supply you with copies of the requisite certificates. If your landlord refuses to do so then you should write to him informing him of his legal duty under the regulation to furnish you with a copy at the start of your tenancy. Failing this, you should make a formal written complaint to your local Health Safety Executive which can be found via their website.

All homes being let must have an Energy Performance Certificate (EPC) from 1 October 2008. The Energy Performance Certificate (EPC) is broadly similar to the labels now provided with domestic appliances such as refrigerators and washing machines. Failure to provide an EPC could mean a fine of up to £5000.00 from Trading Standards.

3. Check that your deposit has been placed in a Tenancy Deposit Protection scheme

Since April 2007 landlords or managing agents are obliged to place a deposit paid by a tenant into Tenancy Deposit Protection scheme.

This is an authorised scheme which protects the deposit and minimises the risk of landlords unreasonably pocketing your deposit at the end of the tenancy.

Your landlord or agent must tell you within 14 days of you handing over the deposit which one of the three authorised schemes your deposit is protected by and provide you with details of the scheme. The three schemes include:

- The Deposit Protection Service which offers a free-to-use system funded from the interest earned on the money deposited

- Tenancy Deposit Solutions Ltd which is a partnership run by the National Landlords Association (NLA) and Hamilton Fraser Insurance

- The Dispute Service

If your landlord or agent fails to place your deposit within one of the protection schemes they could be liable to pay you up to three times the amount of your deposit.

4. I know the person who is letting the property to me therefore I don’t need to sign a tenancy agreement.

Oral agreements can be difficult to enforce because there is often no proof of what has been agreed. If a particular problem arises it will be difficult to enforce what may not have been discussed. Nevertheless a tenancy agreement exists even if there is only an oral agreement between you and your landlord. For example, you may have agreed with your landlord at the beginning of the tenancy how much rent you would pay and when it is due, whether fuel and bills are included, and if your landlord has the right to say who else can live in the property. If you have a dispute with your landlord or you are trying to enforce an oral agreement with your tenant or landlord you should consult an experienced landlord and tenant solicitor.

5. I have not read the tenancy agreement so I can’t be bound to its terms.

The tenancy agreement (or lease) is a legally binding document. You should be aware that by signing the agreement you will be bound for the full term of the tenancy and will not be released from your obligations (for example, to pay rent) before the tenancy expires without the consent of the landlord. The landlord should also sign the tenancy agreement. When he signs the tenancy agreement, the landlord is transferring possession of the property to you. A landlord will not be able to repossess the property before the tenancy expires unless you give up the tenancy or break the tenancy agreement; in the latter case a court order is required.

Before you arrange a date and time to sign the tenancy agreement, make sure that you (and all the other tenants if you are in shared accommodation) have seen a copy and read it through so that everyone including the landlord understands their obligations. Ask questions to clarify anything that you are unclear about.

To safeguard your position on any tenancy, consider running any questions you may have past a solicitor experienced in this kind of work.