What Is a Notice of Commencement in Florida and What Must it Contain?

A Notice of Commencement is a form filled out, recorded, and notarized by the property owner. That said, the General Contractor usually takes care of the Notice of Commencement on the owner's behalf.  This document is filed in county records and signifies the beginning of a project. While not required in some states, not filing the Notice of Commencement in Florida can adversely affect the owners property.  

As per Florida Statutes Chapter 713.135, a Notice of Commencement is required for permitted work over $5000. Failure to properly prepare or timely record an NOC may impact how liens and lien rights affect an owner’s property.  

Where do I record a Notice of Commencement?

The Notice of Commencement Florida must be recorded in the county where the project is located. For example, if you are working in Miami Beach, the NOC should be recorded in the Miami-Dade County recorder's office. If the project is located in Orlando then you would record the NOC in the Orange County recorder’s office.

What information should be in the Florida Notice of Commencement?

According to Chapter 713 of the Florida Statutes, a Notice of Commencement Form must contain the following information, if it’s applicable:

Step 1: Include a legal description of the property and the street address if available.

Step 2: Provide a general description of the improvement.

Step 3: Include the owner’s name, address, and interest in the property, or the lessee's information if the lessee contracted for the improvement.

Step 4: List the contractor’s name, address, and phone number.

Step 5: If applicable, include the surety’s name, address, phone number, and amount of the bond, and attach a copy of the payment bond.

Step 6: If applicable, provide the lender’s name, address, and phone number.

Step 7: If applicable, include the owner’s representative’s information.

Step 8: Specify the expiration date of the Notice of Commencement.

Important Note: It is crucial to ensure the accuracy of all information in the Notice of Commencement, as subcontractors and material suppliers rely on it when filing the Notices to Owners.

What is the deadline to record your Notice of Commencement?

A NOC must be recorded before the construction project begins. It needs to be recorded no more than 90 days before the project begins. The Notice of Commencement has to be recorded prior to the commencement of work. If it’s not than potentially payments made by the owner prior to the recording of the notice of commencement may not be “proper payments.” Proper payments are payments fully compliant with the statute.  If the owner makes any payments that are not considered “proper payments” the owner runs the risk of having to make those payments twice.  

If the work mentioned in the Notice of Commencement doesn't start within 90 days of when the notice was filed, the notice becomes invalid and doesn't have any effect anymore.

Should a Notice of Commencement Florida be Notarized?

In Florida, the NOC must be signed and notarized by the owner or the owner’s agent.

What are the consequences of not filing a Notice of Commencement?

Filing a Notice of Commencement (NOC) is mandatory in the state of Florida for construction projects exceeding $5000. Failure to properly complete, file, record, and post the Florida Notice of Commencement can expose property owners to various legal and financial risks. Here are the potential consequences:

1. Without a valid NOC, property owners may lose their ability to protect themselves from lien claims by subcontractors or suppliers who haven't been paid by the contractor. This means the owner could be held liable for payments even if they have already paid the general contractor in full.

2. If a contractor fails to pay subcontractors or suppliers, these parties can file liens against the property. Without an NOC, the owner might end up paying twice for the same work – once to the contractor and again to satisfy the liens.

3. The absence of an NOC can create confusion about the project's official start date, leading to disputes over payment schedules, deadlines, and lien priorities.

4. Failing to file an NOC could result in legal challenges from contractors, subcontractors, or suppliers seeking to enforce their lien rights.

To avoid these potential consequences, one must ensure that the Notice of Commencement is properly filled out, filed with the appropriate county recorder's office, and posted at the construction site before any work begins.

What are the Best Practices for filing a Notice of Commencement in Florida?

1. Ensure the Notice of Commencement (NOC) is filed with the appropriate county recorder before starting any construction work or delivering materials. This establishes the project's start date and protects your lien rights.

2. Include all required details, such as the property owner's name, the contractor's name, a description of the property, and a description of the work. Double-check for accuracy to avoid delays or legal issues.  

3. Record the NOC with the county where the property is located. Post a copy at the job site in a visible location to inform all parties involved in the project.  

4. Provide copies of the recorded NOC to the property owner, general contractor, and any subcontractors or suppliers involved. This ensures everyone is aware of the recorded notice and their lien rights.  

5. A Notice of Commencement can be updated while it's still active to extend its validity, fix any mistakes, or add missing information. But if you need to change contractors, you'll have to file a new Notice of Commencement or a Notice of Recommencement.

6. The updated notice needs to include the official records book and page number where the original notice of commencement was recorded. The owner must also send a copy of the updated notice of commencement to the contractor and any lien holders who gave a notice to owner before or within 30 days after the updated notice was recorded.

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.

Key Takeaways

1. A Notice of Commencement (NOC) is generally required for permitted construction work exceeding $5,000 in Florida.

2. Ensure all required information is accurately included on your Notice of Commencement Florida form.

3. File your NOC in the correct county where the construction project is located.

4. The NOC must be filed before any work begins or materials are delivered to the site.

5. The property owner or their authorized agent is responsible for filing the NOC.

6. The NOC is typically valid for one year from the date of recording.

7. Failing to file an NOC can jeopardize lien rights.

8. The NOC can be amended or terminated under certain circumstances.

9. Understanding these points can help property owners, contractors, and other parties involved in construction projects navigate the legal requirements and protect their rights effectively.

Common Questions around Notice of Commencement in Florida

What is a Notice of Commencement in Florida?

A Notice of Commencement (NOC) is a legal document filed with the county recorder's office to establish the official start date of a construction project. It serves to protect the lien rights of all parties involved in the project.

When do you need a Notice of Commencement in Florida?

For projects valued above $5,000, a certified, recorded copy of the Notice of Commencement is required. Additionally, for contracts involving the repair or replacement of heating or air conditioning systems where the value exceeds $14,999.99, a certified, recorded Notice of Commencement is also necessary.

Who is responsible for filing the Notice of Commencement?

The property owner or their authorized agent, such as the general contractor, is responsible for filing the NOC. The owner must sign the notice before it is recorded.

How long is a Notice of Commencement valid?

An NOC is typically valid for one year from the date it is recorded, unless otherwise stated. If the project extends beyond this period, an extension or a new NOC must be filed.

What information is required in a Notice of Commencement?

The NOC must include the property owner's name, address, and signature, a description of the property, a description of the work to be done, the name and address of the contractor, and information on the lender, if any.

What happens if a Notice of Commencement is not filed?

Failing to file an NOC can jeopardize the lien rights of contractors, subcontractors, and suppliers. Without a recorded NOC, these parties may not be able to enforce their liens against the property if they are not paid for their work or materials.

Can a Notice of Commencement be amended or terminated?  

Yes, under certain circumstances, a NOC can be amended to correct errors or updated information. It can also be terminated if the project is canceled or if the owner wants to reset lien rights priorities.

Where can I find a Notice of Commencement form in Florida?

The Florida statutes prescribe the form of the NOC. It can be obtained from the county recorder's office, online legal document providers, or construction law websites.    

What are the consequences of errors or omissions in a Notice of Commencement?  

Incorrect or incomplete information in the NOC can lead to disputes over lien rights, delays in project completion, and potential legal challenges. It's crucial to ensure accuracy when filing.    

Is a Notice of Commencement required for all types of construction projects?  

No, there are exceptions. For example, NOCs are not typically required for small-scale projects, minor repairs, or work performed by licensed professionals like architects or engineers.

When is a Notice of Commencement required in Florida?

In Florida, a Notice of Commencement is generally required for construction projects valued over $5,000. However, there are exceptions for minor repairs or replacements that don't affect the structural parts of a building.    

Here's a breakdown of when a Notice of Commencement is required in Florida:

1. Any project with a contract value exceeding $5000 generally requires a Notice of Commencement.    

2. The notice is typically required for new construction, remodeling, or improvements that involve a contractor.

3. Minor repairs, replacements, or projects under the specified value thresholds may not require a Notice of Commencement.    

It's important to note that the requirements for a Notice of Commencement can vary depending on the specific county or municipality in Florida.