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This guide will explain the basics of the Notice of Commencement, why it matters, and what information it needs to contain.
What Is a Notice of Commencement?
A Notice of Commencement is an official document filed with the county where your project is located. It tells everyone involved in the project—like contractors and suppliers—that the construction has started. This notice also protects their rights to file a lien if they aren’t paid for their work.
In Florida, if your construction project costs more than $5,000, you must file a Notice of Commencement before work begins. It has to be signed, notarized, and filed with the county. Skipping this step can lead to legal issues, such as paying for the same work twice.
Why Is the Notice of Commencement Important?
The NOC is important because it protects everyone involved. For property owners, it ensures they aren’t hit with unexpected liens from unpaid subcontractors or suppliers. For contractors and suppliers, it provides a clear start date for the project and protects their rights to get paid.
Without an NOC, property owners could face liens even if they’ve already paid the contractor. Also, any payments made before filing the notice might not be recognized under Florida law, meaning owners could end up paying twice.
Where to File a Notice of Commencement?
The Notice of Commencement must be filed with the county clerk's office in the county where the property is located. You can typically file the NOC in person, by mail, or electronically, depending on the specific county's procedures.
Make sure to file in the correct county, or your NOC could be invalid.
What Should the Notice of Commencement Include?
To comply with Florida law, the NOC must include specific information:
- Property description – The legal description and address of the property.
- Project description – A brief description of the work being done.
- Owner’s details – The name and address of the property owner or the lessee if they're paying for the work.
- Contractor’s information – The name, address, and phone number of the general contractor.
- Surety information (if applicable) – Details about the payment bond and surety company, if there is one.
- Lender’s information (if applicable) – The name and contact info of the project’s lender.
- Owner’s representative – Contact information for the owner’s authorized representative, if there is one.
- Expiration date – The date when the NOC expires (usually one year from when it’s filed).
When Should You File a Notice of Commencement?
You must file the NOC before any work starts. It can be filed up to 90 days before the project begins. If the project doesn’t start within those 90 days, you’ll need to file a new NOC.
Also, any payments made by the owner before filing the NOC may not be considered "proper" under Florida law, potentially leading to double payments if liens are filed.
Notarization Requirements
The NOC must be signed and notarized by the property owner or their authorized agent. If it’s not notarized, the NOC won’t be valid, leaving the property owner at risk of legal problems.
What Happens If You Don’t File a Notice of Commencement?
Not filing an NOC can lead to serious consequences, such as:
- Liens – Subcontractors or suppliers who aren’t paid can place liens on the property, even if the owner has already paid the contractor.
- Double payments – Owners might have to pay twice for the same work: once to the contractor and again to subcontractors or suppliers with liens.
- Disputes – Without an NOC, it’s harder to track when the project started, which can lead to disputes about payments and deadlines.
Best Practices for Filing a Notice of Commencement
Here are some tips to avoid problems:
- File before starting – Always file the NOC with the right county before work begins.
- Check for accuracy – Make sure all information in the NOC is correct.
- Post it at the job site – Put a copy of the NOC at the construction site where everyone can see it.
- Share copies – Give copies of the filed NOC to all involved parties.
- Update as needed – If anything changes, like the contractor, file a new or updated NOC.
How to Terminate a Notice of Commencement in Florida?
To terminate a Notice of Commencement in Florida, you will need to file a Notice of Termination with the county clerk's office. This document confirms that the project is complete and all parties have been paid.
FAQs About Notice of Commencement in Florida
What are the common mistakes to avoid when filling out a Notice of Commencement in Florida?
- Incorrect Information: Ensure all details, such as the property owner's name, contractor’s name, and legal description of the property, are accurate.
- Failure to Include Required Information: This includes missing the property address, a proper legal description, or failure to list all relevant parties.
- Not Notarizing: The Notice must be signed and notarized. Failing to do so will render it invalid.
- Not Including the Correct Amount of the Contract: The contract value must be accurately stated to avoid any complications with payment.
- Omitting the Start Date: The effective start date for the project needs to be included for the notice to be legally recognized.
Can a Notice of Commencement be amended?
Yes, a NOC can be amended if there are changes to the original filing, such as changes to the contractor, property owner, or legal description. Any amendments must be filed with the county clerk and should be properly notarized. The amendment must reference the original NOC to keep the record clear and updated.
Is a Notice of Commencement the same as a lien?
No, a Notice of Commencement is not the same as a lien. A NOC is a preventive document that provides notice of the upcoming construction work, while a lien is a legal claim against the property for non-payment. The NOC helps protect lien rights by ensuring that all relevant parties are notified and legally bound by the project’s terms.
How do I terminate or release a Notice of Commencement?
To terminate or release a NOC in Florida, a Notice of Termination must be filed with the county clerk. This document officially ends the validity of the NOC and indicates that no further work or claims will be made under the notice. It is essential to file the release to clear any legal encumbrances or obligations tied to the project.
How does the filing process differ between counties in Florida?
While the overall process of filing a Notice of Commencement (NOC) is the same across the state, the method of filing can differ from county to county. Some counties require the submission of physical documents at the county clerk’s office, while others may accept electronic filings. It's important to verify with the local county office for specific requirements, including any additional forms or fees.
What happens if a Notice of Commencement is not filed within the required timeframe?
If a Notice of Commencement is not filed within the required 30 days of starting work, subcontractors and suppliers may lose their right to file a lien against the property. This can result in significant payment disputes, and contractors may not be able to enforce their lien rights for non-payment.
Can a Notice of Commencement be filed electronically in all Florida counties?
Not all counties in Florida currently accept electronic filing of the Notice of Commencement. While some counties, especially in urban areas, allow electronic submission through their online portals, others may require the document to be filed in person. It's best to check with the local county clerk's office to determine if electronic filing is available in your county.
What are the consequences of notarizing a Notice of Commencement in Florida?
A Notice of Commencement that is not notarized is considered invalid. This means it won't be effective as a legal document, and it could lead to significant problems such as losing lien rights or not properly securing the payment protections the NOC is designed to provide. All parties listed on the notice must ensure that it is notarized properly to meet Florida’s legal requirements.
Downloadable Resources for Florida Notice of Commencement
- Standard NOC Form:
You can download a standard Notice of Commencement form directly from SunRay: Download NOC Form
- Examples of Completed Forms:
While specific examples of completed forms may not be directly available on SunRay, you can refer to their blog post that outlines the required information and provides guidance on filling out the NOC correctly: What is a Notice of Commencement in Florida?.
- County-Specific Filing Resources:
For county-specific filing instructions and resources, you can visit the SunRay website, which offers guidance on where to file the NOC based on your location in Florida: SunRay Filing Resources.
These resources will help you understand how to properly fill out and file a Notice of Commencement in Florida, ensuring compliance with state laws and protecting your rights in construction projects.
Conclusion
The Notice of Commencement is a simple but important document in Florida construction projects. It helps protect property owners from liens and ensures contractors and suppliers get paid. By filing it correctly and on time, you can avoid a lot of legal and financial trouble.
SunRay Construction Solutions also offers Notice to Owner services in Florida, ensuring that all necessary paperwork is filed to protect your payment rights.
If you need help with filing a Notice of Commencement or understanding lien laws, SunRay Construction Solutions is here to assist. Contact us at 800-403-7660 for guidance on protecting your payment rights.
Key Points
- A Notice of Commencement is required for projects over $5,000 in Florida.
- It protects property owners and contractors by clarifying lien rights.
- Make sure to file it before work starts and in the correct county.
- Failure to file can lead to legal and financial risks, like double payments and liens.
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