Understanding Florida's Mechanic's Lien Laws: What Is A Notice Of Commencement?

Florida Statutes Chapter 713 governs construction liens, more commonly referred to as mechanic's liens. Florida law governing mechanic's liens is both comprehensive and complex. Even so, the statute provides important protections to contractors, subcontractors, suppliers and homeowners. For suppliers, contractors and subcontractors, the mechanic's lien statute provides a method to assure full payment. Stunkel v. Gazebo Landscaping Design, Inc., 660 So.2d 623, 626 (Fl. 1995), citing Prosperi v. Code, Inc., 626 So.2d 1360, 1362 (Fla. 1993)(further citations omitted). For owner's, Florida's mechanic's lien statute requires subcontractors to provide notice of possible liens, which allows owners to avoid double payment to a contractor, subcontractor, material supplier or laborer, for the same services or materials. Id., citing Aetna Casualty and Sur. Co. v. Buck, 594 So.2d 280, 281 (Fla. 1992).

One of the initial obligations of an owner under Chapter 713 is to prepare and file a "Notice of Commencement". Section 713.13(1)(a) provides in relevant part:

[A]n owner or owner's authorized agent before actually commencing to improve any real property, or recommencing completion of any improvement after default or abandonment, whether or not a project has a payment bond complying with s. 713.23, shall record a notice of commencement in the clerk's office and forthwith post either a certified copy thereof or a notarized statement that the notice of commencement has been filed for recording along with a copy thereof.

The Fourth District discussed the purpose of the Notice of Commencement in a 1999 decision. As the court explained:

Though the Notice of Commencement was originally required to trigger a commencement date from which to measure time limitations under the Mechanic's Lien Law, the information contained in the Notice of Commencement provides all the details necessary to complete a Notice to Owner. Indeed, Section 713.13(1)(a), Florida Statutes, requires with Notice of Commencement information including the name and address of the owner and contractor. Thus, the legislature contemplated that the Notice of Commencement would provide the lienor with the current names and addresses of the owner and contractor, so that the lienor could properly mail the Notice to Owner. If no Notice of Commencement was ever posted or recorded by the owner as mandated by the statute, a lienor may have difficulty obtaining the names and addresses of the owners and...