Under Florida’s Construction Lien Law, a lien may be transferred by any person having interest in the real property upon which the line is imposed or the contract under which the lien is claimed from such property by either (1) depositing a sum with the clerk’s office; or (2) filing a surety bond with the clerk. See Fla. Stat. § 713.24(1).
The provisions of Florida’s Construction Lien Law that permit the transfer of the lien are intended to allow a property owner of property to remove a cloud on the title of real property and clear it for sale or additional financing. The owner may transfer a lien in this manner either before or during a lawsuit on the lien. See e.g.
The amount of the payment or the bond must be either in the amount demanded in such claim of lien, plus interest thereon at the legal rate for 3 years, plus $1,000 or 25 percent of the amount demanded in the claim of lien, whichever is greater, to apply on any attorney’s fees and court costs that may be taxed in any proceeding to enforce said lien. See Fla. Stat. § 713.24(1). An owner of improved real property is entitled to recover as damages the cost involved in having an invalid construction lien transferred to a bond. See Gentile v. F. Gaudio Tile and Marble Creations, Inc., 596 So. 2d 175 (Fla. 4th DCA 1992).
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W Mason is an associate with the law firm Fox Rothschild LLP. W practices in Fox Rothschild’s Litigation department in West Palm Beach, Florida. W focuses his practice on commercial litigation throughout Florida, with an emphasis on construction litigation. You can reach W at (561) 804-4432 or wmason@foxrothschild.com. Below are some recent posts W has written on Florida Construction Lien Law:
- Florida Construction Liens: Insurance Proceeds and Construction Liens
- Florida Construction Liens: Construction Liens on Condominium Properties
- Florida Construction Liens: Construction Liens on Leased Property
- Florida Construction Liens: Property Subject To a Construction Lien
- Florida Construction Liens: Liens for Architects, Engineers, Design Professionals, and Surveyors