Florida Notice to Owner (NTO) – Everything you need to know

People often get the details wrong when sending their Florida NTOs. This results in an invalid NTO, meaning you lose your lien and bond rights on the project. 

For your Florida NTO to be valid, the 3 main things you need to watch out for are: 

1.     Was the NTO sent on time? 

2.    Was the NTO correctly researched and completed? 

3.    Was the NTO Florida sent to all of the required recipients?  

Why Is it So Important to Send a Notice to Owner Florida?

Sending a Notice to Owner Florida form secures your right to get paid. You may not get paid for any number of reasons but here are the three most common in the construction industry in Florida: 

1.     Owner pays the general contractor, but the general contractor does not pay you.

2.     Owner does not pay the general contractor who then cannot pay you. 

3.     Person that hires you claims that they are the owner, but they are actually the tenant of the property.  

When Do I Need to Send a Florida Notice to Owner?

Sending a late NTO is the single most common reason for an invalid NTO. 

A Notice to Owner needs to be received, not sent, 45 days from first furnishing labor and/or materials to the project.

‍

Who Should You Send Your Notice to Owner to?

A "Notice to Owner" (NTO) is a misleading term, as it's not solely intended for the property owner. In reality, the NTO must be sent to all stakeholders involved in the project, as outlined in the Notice of Commencement (NOC).

These stakeholders have a vested interest in the project and its impact on the property's value. Therefore, it's crucial to include them in the notification process.

To ensure compliance, simply refer to the NOC/ Notice of Commencement for a comprehensive list of recipients for the NTO.

To check if a Notice of Commencement (NOC) has been filed, search the County Recorder's Official Records using your first and last name.  

Most Searched - Florida County Assessors

1. Miami-Dade County (Miami metro area)

2. Palm Beach County (West Palm Beach metro area)

3. Pinellas County (St. Petersburg metro area)

4. Hillsborough County (Tampa metro area)

5. Duvall County (Jacksonville metro area)

6. Orange County (Orlando metro area)

7. Leon County (Tallahassee metro area)

The Notice to Owner Florida Form

The Notice to Owner form can be found under § 713.06, Fla.Stat. (2019).The Florida statute lays out the Notice to Owner requirements, such as:  

1.      The owner's name and address, 

2.      The general description of the work or materials you are providing to the job, 

3.      Legal description of the property you are improving, 

4.      Your signature, name, and address, and 

5.      A list of those who will receive copies of the NTO Florida

‍

Can a Notice to Owner Florida Jeopardize My Business Relationship?

Many subcontractors and suppliers fear sending a Notice to Owner Florida form as they think it will jeopardize their business relationship with the client. 

The opposite is in fact the case and sending your Florida NTOs in a timely and professional manner is simply good business practice. It is expected in the industry to such an extent that general contractor swill normally pay those subcontractors who send their NTOs first. 

By contrast, not sending your Florida NTOs in a timely and professional manner is a sure sign of someone just starting out or otherwise not knowledgeable as to how the industry operates.

Who does not need to send a Notice to Owner to secure their lien rights?

Nearly everyone making improvements to a construction project has lien rights: General contractors, subcontractors, suppliers, equipment lessors, laborers, designers, and architects all have lien rights in Florida. 

Interior designers, laborers, architects, landscape architect, engineers, surveyors, and mappers are not required to send Florida Notice to Owner forms to secure their lien rights.  

To confirm if you fall under this umbrella you can review§ 713.03, Fla.Stat. (2019). Standard business practice is to send Florida NTOs unless you are certain that you do not need to send them.

Who does not have lien rights?

‍

Some groups do not have lien rights. Generally, those who do not have lien rights are considered "remote" contractors. The following do not have lien rights: 

1.      Suppliers to suppliers 

2.      4th-tier subcontractors  

As a side note, rental companies and material suppliers that are 4th-tier DO have lien rights and should send a Notice to Owner in Florida.

Key Takeaways

1. The 45-day deadline for serving a Notice to Owner is strict. It starts from the first furnishing of labor or materials, not the completion of the project. Missing this deadline is a common mistake that can invalidate your lien rights and jeopardize your payment.

2. The NTO must be received by the necessary parties within 45 days, not just mailed or sent. This means you need to factor in mail delivery time or use a reliable delivery method to ensure timely receipt. Hence it advised to send the Notice to Owner in Florida by  the 40^th day.

3. Sending a late NTO is one of the most frequent reasons why NTOs are considered invalid in Florida. This can have serious consequences for your ability to collect payment if disputes arise.

4. In addition to timing, the NTO must contain specific information and be delivered to the correct parties. Errors in content or delivery can also invalidate the NTO.

5. Given the complexity and importance of the NTO process, many contractors and suppliers choose to use professional services to prepare and serve their NTOs. This helps ensure accuracy, timely delivery, and compliance with all legal requirements.

6. The Notice of Commencement for the project is a crucial document. It lists the parties who must receive the NTO.

7. Keeping a detailed Project Information Sheet for each project can help you track important dates and deadlines, including the NTO deadline.

8. Open communication with the property owner and other relevant parties can help prevent payment disputes and reduce the need for formal lien actions.
   ‍

If you require expert assistance with Florida lien law, SunRay, a leader in Florida lien law webinars, is here to help. We offer specialized webinars to safeguard your rights and ensure the successful outcome of your project. Please contact us at 800-403-7660 to discuss how we can assist you in securing the payment you are entitled to.

FAQs About Florida Notice to Owner

Will sending a Notice to Owner harm my business relationships?

No, sending an NTO is standard practice in the construction industry and is seen as a sign of professionalism. General contractors often prioritize paying subcontractors who send NTOs promptly.

Who doesn't have lien rights?

Some "remote" contractors, like suppliers to suppliers or 4th-tier subcontractors, don't have lien rights. However, rental companies and material suppliers who are 4th-tier do have lien rights and should send an NTO.

What happens if the owner doesn't respond to my Notice to Owner?

There's no requirement for the owner to respond. The NTO serves as a legal notification, preserving your lien or bond claim rights whether or not you receive a reply.

How can I ensure my Notice to Owner is done correctly?

Consider using professional services like that of SunRay that specialize in preparing and sending NTOs. This can save you time and ensure your rights are fully protected.

Why Are NTOs Crucial?

Here's why NTOs are essential:

1. NTOs protect you in several scenarios, such as if the owner doesn't pay the general contractor, the general contractor mismanages funds, or there's confusion about property ownership.

2. Sending an NTO on time often results in priority payment. General contractors tend to settle debts with those who have filed NTOs first.

3. Sending an NTO is standard industry practice and demonstrates your professionalism and understanding of the legal landscape.

‍

‍