In this blog, we will understand the crucial details to note when filing a Notice of Commencement in Florida.
What is a Notice of Commencement?
In Florida, a Notice of Commencement is a legal document that is filled out, recorded, and notarized by the property owner. Generally, it is required for permitted work over $5,000, but every municipality is slightly different. The owner is obligated to ensure an NOC is properly prepared and recorded. Failure to properly prepare or timely record an NOC may impact how liens and lien rights affect an owner’s property. It serves two primary purposes:
- To Notify Potential Lienors: The NOC informs subcontractors, suppliers, and other involved parties that construction is about to commence. This notification allows them to take necessary measures to protect their lien rights in case they do not receive payment for their work or materials.
- To Protect Property Owners: By filing the NOC, property owners establish a clear communication chain regarding payments, which helps prevent subcontractors from filing a lien against the property if they are not paid by the general contractor.
Florida Notice of Commencement Checklist: How to Fill Out a Notice of Commencement?
Filing an accurate Florida Notice of Commencement is essential for its effectiveness. Below is a comprehensive checklist to guide you through the process:
Step 1 - Collect Required Information
- Legal Property Description: Obtain an accurate description of the property where the construction will take place. This information can be found on your property deed or tax records.
- Project Description: Provide a brief description of the nature of the improvement or construction being undertaken.
- Owner Details: Include your name, address, and contact information.
- Contractor Details: Provide the name, address, and license number (if applicable) of the general contractor.
Step 2 – Download the Notice of Commencement Form
You can download a generic Florida Notice of Commencement form from the Florida Department of State website or your local county government website.
Step 3 - Complete the Form Accurately
Carefully fill out the form with the information gathered in step 1. Ensure all details are precise and complete.
Step 4 – Notarize the NOC
The NOC must be notarized by a notary public to be legally valid.
Step 5 - File the Notice of Commencement
Once notarized, file the NOC with the county office where the construction project is located.
Step 6 - Post a Copy of the Notice of Commencement On-Site
Print a copy of the filed NOC and post it at the construction site. This serves as public notice of the project and the commencement date.
These are the steps to keep in mind when preparing a Notice of Commencement in Florida.
Key Takeaway
By adhering to this checklist for the Notice of Commencement, you can significantly reduce the risk of encountering construction liens and ensure a smoother construction project experience in Florida.
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Common Questions Contractors Ask
How long is a NOC good for in Florida?
The Notice of Commencement will expire one year from the date of recording unless a different date is specified. It is important to ensure the expiration date is set beyond construction completion and the final payment to the contractor.
Who Files a Notice of Commencement in Florida?
The Notice of Commencement is typically filed by the property owner or the property owner's authorized agent. This filing ensures that all parties involved are aware that a construction project is starting and that their lien rights are preserved.
Who is the Grantor and Grantee on a Notice of Commencement?
In a Notice of Commencement, the grantor is the property owner who is initiating the construction project. The grantee is the public, specifically the subcontractors, suppliers, and other parties who may have lien rights related to the project.
When is a Notice of Commencement Required in Florida?
A Notice of Commencement is required in Florida for any construction project where the total value exceeds $5,000.
How to Notarize a Notice of Commencement?
To notarize a Notice of Commencement in Florida, follow these steps:
- Fill out the Notice of Commencement form with accurate and complete information.
- Take the completed form to a notary public. You can find notaries at banks, legal offices, and certain retail locations.
- Present valid identification to the notary public to verify your identity.
- Sign the Notice of Commencement in the presence of the notary public.
- The notary public will then sign and affix their seal to the document, confirming that it has been notarized.
After notarization, you can proceed to file the Notice of Commencement with the clerk of the circuit court in the county where the construction project is located.