Is the lien bad?

In its simplest form, a bond under Florida law is a signal to the world that the lienholder has an interest in some real or personal property. The most common are building links registered for materials, as Florida law defines that term. Material men are generally considered property enhancers and are not fully paid. In Florida, judgments can also act as links, as well as Uniform Commercial Code Financing Statements (UCC-1), if properly recorded and filed in the correct places.

So what if one of the parties has the legal right to record a lien, should they? Like many areas of the law, it depends on the particular situation. However, the links provide legal methods to seize the property and give one party special rights greater than those of other claimants. For example, a properly registered priority link may give one party the ability to prevent another party from having sixteen assets subject to the link and may ultimately protect that party’s ability to satisfy a judgment in its favor.

So how does a party know if it has the legal right to record a lien? A party may be entitled to a bond if they have participated in the real estate improvement and have not received full payment. A party may also be entitled to a bond if it lent money when the agreement stipulated that the debt was secured. These are just a few examples of common situations where liens arise. They are not exclusive and the best action to take before filing a lien is to consult with a qualified legal advisor.

Keep in mind that Florida lien laws are very strict and failure to comply with their requirements in a proper and timely manner can expose one of the parties to significant liability. This is not the type of legal matter that a party should undertake without an attorney to save money because it can result in substantial liability later on. Inappropriate ties or those deemed fraudulent by a court can result in costly lawsuits against lien claims, such as silent title and defamation of title, which can expose the lien to significant liability, including attorneys’ fees and punitive damages.

If you believe you have a need or right to file a lien or believe that your property has been wrongfully seized by some party, you should first consult with an attorney who understands and has experience in real estate, construction, or property litigation. Board-certified attorneys in real estate law, construction law, and commercial litigation are recognized by the Florida Bar, judges, and their peers as experts in this field. You can obtain a list of Board Certified Attorneys on the Florida Bar website at http://www.flabar.org.