Why You Need a Notice to Owner in Florida?

Lien rights are often lost by subcontractors in Florida because they fail to send their Notice to Owner before the deadline. A Notice to Owner (NTO) is needed to secure your lien and bond rights in the state of Florida and it must be received by the 45th day from when you first furnished labor or materials to the project.

A Notice to Owner in Florida is not required if you have a direct contract with the property owner. The most common mistake subcontractors and suppliers make is mailing their NTOs on the 45th day from first furnishing. Many subcontractors and suppliers have been given inaccurate deadline information and lose their lien rights. ‍

The Importance of the Notice to Owner

1. An NTO is not required if you have a direct contract with the property owner. However, for subcontractors and suppliers, it's a crucial safeguard.

2. Many subcontractors mistakenly mail their NTOs on the 45th day, unaware that it must be received by that day. This misunderstanding can lead to the devastating loss of lien rights.

3. The 45-day deadline starts the day after you first furnish labor or materials. It includes weekends and holidays, but if the 45th day falls on a weekend or holiday, you have until the next business day.

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A Notice to Owner needs to be received by the 45th day from first furnishing.

What does the 45-day deadline really mean? You should be aware of the following deadlines and how to count them down:

1. All required parties that need to receive the Notice to Owner must receive it by the 45th day;

2. The 45th day excludes the date of first work;  

3. The 45th day starts on the first calendar day thereafter (this is day 1 of 45);

4. Includes all weekends and legal holidays counting continuously from day 1 until day 45;

5. If the 45th day falls on a weekend or legal holiday, you can roll it to the next business day (thereby potentially getting up to 48 days to deliver the NTO).

What to Include in Your Notice to Owner

Your Florida NTO must include specific information to be valid, including:

1. Property owner(s) name and address

2. A general description of the work or materials provided

3. The property's legal description

4. Your company's name and address

5. Warning language as specified by Florida law

How to Prepare and Serve a Notice to Owner in Florida?

Preparing a Notice to Owner (NTO) form in Florida involves these steps:

Step 1 - Obtain a copy of the Notice of Commencement (NOC): This document lists all parties involved in the construction project, providing essential contact information for the NTO.

Step 2 - Prepare the NTO form: Florida law (Statute 713.06) mandates specific requirements for the NTO. The form must include:

• Warning: A clear warning to the property owner about the potential consequences of non-payment to subcontractors or suppliers, including the possibility of a lien on the property and double payment.

• Information: This includes the names and addresses of the property owner, any owner's designee, the general contractor, a description of the work or materials supplied, a property description, and the name and address of the hiring party.

• Identification of Recipients: Each party receiving a copy of the NTO must be identified.

• Statutory Language, Signature, and Date: Include the mandated warning language from the statute, the sender's name and signature, and the date of signature.

How to find out details about a project?

The Notice of Commencement (NOC) is your key resource for project details. It contains essential information you need to prepare a Notice to Owner (NTO) and understand the project scope.

Here's what you can typically find on a Notice of Commencement:

• Recipient Information: A full list of all parties involved in the project, including the property owner, any owner's designee, the general contractor, subcontractors, suppliers, and lenders.

• Project Details:

• A legal description and complete address of the property.

• A description of the improvements planned for the property.

• Key Contacts:

• The owner's name and address.

• The contractor's name, address, and contact information.

By reviewing the NOC, you ensure your NTO is accurate and sent to the right parties. This protects your lien rights and ensures you're informed about the project's specifics.

Why You Should Not Wait Until the Final Hour to Send Your Notice to Owner

Never wait to send your Notice to Owner. Many subcontractors and suppliers send the Notice to Owner only if they haven’t been paid. An NTO Florida should be sent at the beginning of the project informing all parties at the onset that you have furnished labor or materials for improvement to the property.  

Many subcontractors and suppliers fear that sending a Notice to Owner can hurt their business relationship with their customer. However, this is a big misconception. You should fill out your Florida Notice to Owner form as quickly as possible.  

Billion-dollar construction companies understand the importance of putting a process in place to secure their lien rights and do not wait until the final hour to send their NTOs. General contractors tend to pay the people that send them a Notice to Owner first.

How Can I Determine My Deadline?

Do you need to know your Notice to Owner deadline? SunRay has developed a user-friendly deadline calculator. You can easily calculate your Notice to Owner deadline by plugging in your job details. You can easily calculate your Notice to Owner deadline by plugging in your job details.

What can I do to ensure that I meet my Notice to Owner deadline?

To avoid losing your lien rights, the best business practice is to send your Notice to Owner as soon as you start working on the project. Your Florida NTO is not considered valid unless it is received by the 45th day, which means you must leave time for the NTO to reach not only the owner, but all required recipients.  

To ensure that SunRay’s customers never lose their lien rights, SunRay’s mail department goes to the post office every day and keeps a stamped manifest for proof of mailing. SunRay helps 1000s of Florida subcontractors and suppliers secure their lien rights!

Who is required to receive a copy of the Notice to Owner? 

In Florida, the Notice to Owner (NTO) is not just for the property owner. It must be sent to everyone listed on the Notice of Commencement (NOC). This includes the property owner, any owner's designee, the general contractor, subcontractors, suppliers, and lenders.

Here are the three delivery methods for a Notice to Owner in Florida:

1. Recommended: Send via a common carrier (UPS, FedEx) or certified/registered mail with a return receipt. This provides proof of delivery and timely service.

2. Personal Delivery: Deliver directly to the person being served. If it's a partnership, only one partner needs to be served. If it's a corporation, deliver to an officer, director, or business agent. For a limited liability company (LLC), deliver to a member or manager.

3. Posting on Site: Use this method only if the previous two are not feasible.

Best Practice:

The best practice is to use certified mail. If mailed within 40 days of first providing labor or materials, and a certified mail log is maintained, the NTO is considered effective on the date of mailing, even if delivery is late or doesn't occur due to postal issues.

Important Note:

For the mailing date to be effective, the NTO must be sent to the address listed on the NOC, any amendments to it, or the building permit application. If those are not available, use the last known address of the recipient.

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Key Takeaways

1. Securing your lien rights with a Notice to Owner is crucial to getting paid.  
2. Don’t wait until the last minute to send your Notice to Owner. Send your NTO as soon as you start working on the project.  
3. Whether you have a written contract or an oral contract, you want to send your Florida NTO as soon as you start working on the project.  
4. One of the ways you can make the process easier for you and your company is by filling out a Project Information Sheet for every one of your projects.  
5. Remember, sending a Notice to Owner does not mean you doubt your customer’s integrity, it’s just good business practice and is ordinarily perceived as such.  
6. A Florida NTO lets all parties know that you have secured your right to lien in the event of nonpayment.

Common Questions Contractors Ask

Is a Notice to Owner required in Florida?

State of Florida law requires that anyone who supplies labor, services or materials to a contractor on any construction job must send the owner of the construction project a “Notice to Owner” form to protect their rights to getting paid on the construction project.

What is a notice of commencement Notice to Owner in Florida?

A Notice of Commencement (NOC) is a legal document that marks the beginning of a construction project in Florida, ensuring legal protections for all parties involved under Chapter 713 of the Florida Statutes.

What is the purpose of Notice to Owner in Florida?

The notice to owner is used as an official document sent by a supplier or subcontractor who is not working directly with the owner in order to notify the owner to make sure that the contractor is making the necessary payments to the sender of the NTO.

Who files a notice of commencement in Florida?

The property owner or property owner's agent is the one who must file the Notice of Commencement. Florida law states that a Notice of Commencement must be submitted to the clerk's office in order to apply for a building permit with contracts having a value greater than $5,00.