One of the most common calls I get are from owners asking what can they do if a contractor files a claim of lien on their property. If the contractor is legitimately owed the money claimed in their lien I typically recommend that the owner contact the contractor to resolve the issue. Of course, the more common scenario is where the owner believes the contractor is not entitled the amount listed in their lien because the contractor didn’t finish the job, the work wasn’t done properly, or the contractor’s bills were inflated. In this situation, the owner does have various options depending on how aggressively they want to challenge the lien.
The first option is do nothing. Some owners are surprised when I tell them they don’t have to do anything. However, under Florida law the contractor has one year from the date the lien was recorded to file a lawsuit to enforce its lien. If the contractor fails to file a lawsuit within one year the lien is null and void. Therefore, unless the owner is planning to sell or transfer the property within the next year the owner does have the option of simply waiting to see if the contractor will file a lawsuit within the one year statute of limitations. Of course, most owners want to take affirmative action to challenge a lien especially if they are confident the lien is invalid.
The owner can also file a notice of contest of lien. A notice of contest of lien is a statutory form that shortens the statute of limitations from one year to sixty days. The owner records the notice of contest of lien and the clerk’s office mails a copy of the notice to the contractor. If the contractor fails to file a lawsuit within sixty days of the date the clerk’s office mailed the copy of the notice the lien is null and void. This notice of contest of lien is an effective method of notifying the contractor you are challenging their lien without jumping right into litigation.
Finally, the most aggressive option when an owner receives a claim of lien is to file a show cause complaint. This option is appealing to owners who want a prompt resolution and are confident there is a basis to challenge validity of the lien. A show cause complaint is a lawsuit which requires the contractor to enforce its claim of lien within twenty days of service. If the contractor does not file a counterclaim to enforce its claim of lien within twenty days the court should automatically discharge the claim of lien upon filing of a motion by owner.