Need to prepare and send a Notice to Owner (NTO) in Florida? Here's how you can prepare and send an NTO in Florida. Get a free Notice to Owner form too!
The most powerful collection tool in the construction industry is a lien however if you don’t send a Notice to Owner you may never have lien rights. Depending on where you are on the payment food chain a Notice to Owner is the first document you need to send in order to secure your lien and/or bond claim rights. This article will help you learn how to prepare and send Notices to Owners in Florida.
Sending a correctly filled out Notice to Owner Florida form secures your right to get paid for labor and/or materials furnished to a construction project. By preparing your Notice to Owner (NTO) accurately and mailing your Notice to Owner (NTO) timely, you are securing your equity interest in the project.
· Notice to Owner Form - The Notice to Owner form can be found under §713.06, Fla.Stat. (2019).
· Recipients - Obtain a copy of the Notice of Commencement and list all the recipients on the notice to owner. If a Notice of Commencement was never recorded or required you may rely on the information in the building permit. §713.06(2)(e)
· Deadline - The Notice to Owner MUST be received by the 45th day from when you furnished labor and/or material to the project. §713.06(2)(a)
· Service - Send the Notice to Owner by certified return receipt deliver via certified mail for proof of delivery.
In the State of Florida, anyone working on a construction project and has a direct contract with the property owner is not required to send a Notice to Owner.
The Notice of Commencement for the project you are working on will have a full list of all the people you need to send your Notice to Owner to. It will also contain information that you need to include in the NTO. The Notice of Commencement also contains information such as:
WARNING!
FLORIDA’S CONSTRUCTION LIEN LAW ALLOWS SOME UNPAID CONTRACTORS, SUBCONTRACTORS, AND MATERIAL SUPPLIERS TO FILE LIENS AGAINST YOUR PROPERTY EVEN IF YOU HAVE MADE PAYMENT IN FULL.
UNDER FLORIDA LAW, YOUR FAILURE TO MAKE SURE THAT WE ARE PAID MAY RESULT IN A LIEN AGAINST YOUR PROPERTY AND YOU'RE PAYING TWICE.
TO AVOID A LIEN AND PAYING TWICE, YOU MUST OBTAIN A WRITTEN RELEASE FROM US EVERY TIME YOU PAY YOUR CONTRACTOR
Information:
Below is a list of key information that must be included in the Notice to Owner (You can find it in Florida Statutes Section 713.06)
You can use SunRay’s Project Information Sheet to write down the details about your project so that you have all your information in one place whenever you need it.
Your lien rights could be lost if there are any inaccuracies or omissions in your Florida NTO form. Using competent lien management software to complete your Florida Notices, Liens, or Bond Claims will make sure the form is carefully considered and created in compliance with the requirements of statutory legislation. Furthermore, the service will guarantee that the form is delivered to all necessary recipients before the deadline, allowing you to be certain that the legislative requirement has been met.
As mentioned in the beginning of this article, you can always reference the Florida Statutes “Notice to Owner” statutory form here.
Despite the name, the Notice to Owner form the notice isn’t just sent to the owner of the property, it is sent to all the people shown on the Notice of Commencement. The Notice to Owner notifies all parties interested in the project.
There are three different ways to deliver a Notice to Owner in Florida. They are:
The best business practice is to use option one above via certified mail. The reason is that if the Notice to Owner is mailed within 40 days after the date the lienor first furnishes labor, services, or materials, and if the person who served the notice maintains a certified mail log (also known as a manifest) that shows the certified mail number issued by the United States Postal Service, the name and address of the person served, and the date stamp of the United States Postal Service confirming the date of mailing, then service of the Notice to Owner is effective on the date of mailing (not the date of receipt). This means that even if the Notice was delivered late (after the 45 days) by the Post Office, or never delivered due to an issue with Post Office (the mail truck caught fire), your Notice to Owner is still timely and effective upon mailing.
There is one important condition for this to apply. Specifically, the Notice must be sent to the last address shown in the Notice of Commencement or any amendment there to or, in the absence of a Notice of Commencement, to the last address shown in the building permit application, or to the last known address of the person to be served. Therefore, having accurate project information and conducting proper research to locate the Notice of Commencement is critical.
A Notice to Owner must be received by the 45 th day from first furnishing labor and/or material to a project. Best business practice is to send your Notices to Owners as soon as you have a verbal or written agreement.
*Specially fabricated Material- If fabricated material was specially and specifically designed for the project and you cannot use this material for anything other than this project, the NTO should be sent via certified mail from 45 days from the first production of the material at the shop, not 45 days from the delivery date of supplies to project.
In particular situations, there may be an exception to a Notice to Owner in Florida -
Only subcontractors, sub-subcontractors, and suppliers have the right to file a construction lien. If you are a remote contractor, i.e., supplier to suppliers, or 4th-tier subcontractors, you do not have an obligation to serve a Notice to Owner, nor do you have any rights to claim a lien on real property.
Remember that sending your Notice to Owner is essential to securing your lien rights. Make sure you have the correct statutory Notice to owner form, that it’s filled out correctly sent to all the correct recipients, and mailed timely.
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THE INFORMATION ON THIS WEBPAGE IS NOT THE SAME AS LEGAL ADVICE. SUNRAY CONSTRUCTION SOLUTIONS, LLC IS NOT AN ATTORNEY OR A LAW FIRM. WE RECOMMEND THAT YOU CONSULT WITH AN ATTORNEY.
A Notice to Owner (NTO) is a legal document used in Florida construction projects to inform the property owner that a subcontractor or supplier is providing labor, materials, or services to improve their property. It is important because it preserves the subcontractor's or supplier's right to file a lien against the property if they are not paid for their work.
Subcontractors, sub-subcontractors, and material suppliers who do not have a direct contract with the property owner are generally required to send a Notice to Owner in Florida to protect their lien rights.
A Notice to Owner should be sent within 45 days of commencing work or providing materials to the project in Florida. However, for subcontractors hired after the project begins, the deadline is 45 days from their first work date.
A Notice to Owner in Florida should include the subcontractor's or supplier's name and address, the property owner's name, a description of the services or materials provided, and the general contractor's name (if known).
While there is no mandated template, it is important to include all required information and follow the format outlined in Florida's lien laws to ensure the notice is valid and effective.
Yes, a subcontractor or supplier can send a Notice to Owner directly to the property owner in Florida, as long as it is done in accordance with the state's lien laws.
Failing to send a Notice to Owner in Florida can result in the loss of lien rights, meaning the subcontractor or supplier may not be able to file a lien against the property to secure payment for their work.
Sending a Notice to Owner in Florida alerts the property owner to the subcontractor's or supplier's involvement in the project and preserves their right to file a lien if payment issues arise.
There are certain exceptions, such as when the property owner has posted a payment bond or if the project falls under specific exemptions outlined in Florida's lien laws.
The process involves gathering necessary information, preparing the notice, sending it via certified mail with return receipt requested, and retaining proof of delivery to demonstrate compliance with Florida's lien laws. It's crucial to adhere to deadlines and requirements outlined in the statutes to protect lien rights effectively.
