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What is the Notice of Commencement?
The Notice of Commencement is a form filled out, recorded, and notarized by the property owner, symbolizing the commencement of a construction project. Although the requirement may vary slightly across municipalities, it is generally necessary for permitted work exceeding $5,000. The responsibility lies with the property owner to ensure the proper preparation and timely recording of the NOC. Neglecting these obligations may have implications on liens and lien rights affecting the owner's property.
Recording the Notice of Commencement
To comply with the regulations, the Notice of Commencement must be recorded in the county where the project is located. For instance, if you are working in Miami Beach, Florida, record the NOC in the Miami-Dade County recorder's office. Similarly, for projects in Orlando, the NOC should be filed with the Orange County recorder's office.
Key Information in the Florida Notice of Commencement
As per Chapter 713 of the Florida Statutes, the Notice of Commencement Form should contain specific information, including:
- Legal description and street address (if available) of the property.
- General description of the improvement being undertaken.
- Owner's details such as name, address, and property interest, or lessee's information if the lessee is responsible for the improvement.
- Contractor's name, address, and contact number.
- Surety information (if applicable), including the payment bond details such as name, address, phone number, and bond amount.
- Lender's information (if applicable), including name, address, and contact number.
- Owner's representative's contact details (if applicable).
- Expiration date of the Notice of Commencement Form.
Ensuring accuracy in providing this information is crucial, as subcontractors and material suppliers rely on it when filing their own Notice to Owner.
Deadline for Recording the Notice of Commencement
The NOC must be recorded no more than 90 days before the construction project begins. However, it's important to note that if the project does not commence within 30 days of the recording, the NOC becomes void.
Notarization Requirements
In Florida, the Notice of Commencement must be signed and notarized by the owner or the owner's agent to validate its authenticity.
Consequences of Failing to File a Notice of Commencement
- Filing a Notice of Commencement is mandatory in Florida, and failure to do so correctly can result in significant legal and financial consequences.
- The Notice of Commencement prevents the owner from being liable to pay for the same work twice, offering an additional layer of protection.
- It is crucial for owners to follow the payment process specified in the Florida Statutes to safeguard their interests and ensure a smooth construction project.
Key Takeaways
- An NOC is generally required for permitted work exceeding $5,000.
- Include all the necessary information accurately on your Florida Notice of Commencement form.
- Record the NOC in the appropriate county to comply with the regulations.
Conclusion
In conclusion, understanding the Notice of Commencement is paramount for anyone involved in construction projects in Florida. It serves as a vital step in protecting lien rights and ensuring fair payment practices. By adhering to the requirements of filing and recording the Notice of Commencement accurately and on time, property owners can safeguard their interests and avoid potential legal and financial repercussions. Complying with the Florida Statutes and following best practices related to the Notice of Commencement is essential for a smooth and successful construction process. By recognizing its significance and taking the necessary steps, stakeholders can navigate the complexities of lien rights with confidence and maintain a favorable position within the construction industry in Florida.
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