What is a Notice of Commencement that was found when I tried to refinance my home?
Full Question:
Answer:
The following are Florida statutes:
713.13 Notice of commencement. —
(1)
(a) Except for an improvement that is exempt pursuant to
s. 713.02 (5), an owner or the owner's authorized agent
before actually commencing to improve any real property, or
recommencing completion of any improvement after default or
abandonment, whether or not a project has a payment bond
complying with s. 713.23, shall record a notice of
commencement in the clerk's office and forthwith post either
a certified copy thereof or a notarized statement that the
notice of commencement has been filed for recording along
with a copy thereof. The notice of commencement shall
contain the following information:
1. A description sufficient for identification of the real
property to be improved. The description should include the
legal description of the property and also should include
the street address and tax folio number of the property if
available or, if there is no street address available, such
additional information as will describe the physical
location of the real property to be improved.
2. A general description of the improvement.
3. The name and address of the owner, the owner's interest
in the site of the improvement, and the name and address of
the fee simple titleholder, if other than such owner.
4. The name and address of the contractor.
5. The name and address of the surety on the payment bond
under s. 713.23, if any, and the amount of such bond.
6. The name and address of any person making a loan for the
construction of the improvements.
7. The name and address within the state of a person other
than himself or herself who may be designated by the owner
as the person upon whom notices or other documents may be
served under this part; and service upon the person so
designated constitutes service upon the owner.
(b) The owner, at his or her option, may designate a person
in addition to himself or herself to receive a copy of the
lienor's notice as provided in s. 713.06 (2)(b), and if he or
she does so, the name and address of such person must be
included in the notice of commencement.
(c) If the contract between the owner and a contractor named
in the notice of commencement expresses a period of time for
completion for the construction of the improvement greater
than 1 year, the notice of commencement must state that it
is effective for a period of 1 year plus any additional
period of time. Any payments made by the owner after the
expiration of the notice of commencement are considered
improper payments.
(d) A notice of commencement must be in substantially the
following form:
Permit No. _____
Tax Folio No. _____
NOTICE OF COMMENCEMENT
State of _____
County of _____
The undersigned hereby gives notice that improvement will be
made to certain real property, and in accordance with
Chapter 713, Florida Statutes, the following information is
provided in this Notice of Commencement.
1. Description of property: __(legal description of the
property, and street address if available)__.
2. General description of improvement: _____.
3. Owner information: _____.a. Name and address: _____.
b. Interest in property: _____.
c. Name and address of fee simple titleholder (if other than
Owner): _____.
4.a. Contractor: __(name and address)__.
b. Contractor's phone number: _____.
5. Suretya. Name and address: _____.
b. Phone number: _____.
c. Amount of bond: $ _____.
6.a. Lender: __(name and address)__.
b. Lender's phone number: _____.
7.a. Persons within the State of Florida designated by Owner
upon whom notices or other documents may be served as
provided by Section 713.13 (1)(a)7., Florida Statutes:
__(name and address)__.
b. Phone numbers of designated persons: _____.
8.a. In addition to himself or herself, Owner
designates _______________ of _______________ to receive a
copy of the Lienor's Notice as provided in
Section 713.13 (1)(b), Florida Statutes.
b. Phone number of person or entity designated by owner: ____.
9. Expiration date of notice of commencement (the expiration
date is 1 year from the date of recording unless a different
date is specified) _____.
WARNING TO OWNER: ANY PAYMENTS MADE BY THE OWNER AFTER THE
EXPIRATION OF THE NOTICE OF COMMENCEMENT ARE CONSIDERED
IMPROPER PAYMENTS UNDER CHAPTER 713, PART I, SECTION 713.13,
FLORIDA STATUTES, AND CAN RESULT IN YOUR PAYING TWICE FOR
IMPROVEMENTS TO YOUR PROPERTY. A NOTICE OF COMMENCEMENT MUST
BE RECORDED AND POSTED ON THE JOB SITE BEFORE THE FIRST
INSPECTION. IF YOU INTEND TO OBTAIN FINANCING, CONSULT WITH
YOUR LENDER OR AN ATTORNEY BEFORE COMMENCING WORK OR
RECORDING YOUR NOTICE OF COMMENCEMENT.
__(Signature of Owner or Owner's Authorized
Officer/Director/Partner/Manager)__
__(Signatory's Title/Office)__
The foregoing instrument was acknowledged before me
this _____ day of _____, __(year)__, by __(name of person)__
as __(type of authority, . . . e.g. officer, trustee,
attorney in fact)__ for __(name of party on behalf of whom
instrument was executed)__.
__(Signature of Notary Public — State of Florida)__
__(Print, Type, or Stamp Commissioned Name of Notary Public)__
Personally Known _____ OR Produced Identification _____
Type of Identification Produced _______________
Verification pursuant to Section 92.525, Florida Statutes.
Under penalties of perjury, I declare that I have read the
foregoing and that the facts stated in it are true to the
best of my knowledge and belief.
__(Signature of Natural Person Signing Above)__
(e) A copy of any payment bond must be attached at the time
of recordation of the notice of commencement. The failure to
attach a copy of the bond to the notice of commencement when
the notice is recorded negates the exemption provided in
s. 713.02 (6). However, if a payment bond under s. 713.23
exists but was not attached at the time of recordation of
the notice of commencement, the bond may be used to transfer
any recorded lien of a lienor except that of the contractor
by the recordation and service of a notice of bond pursuant
to s. 713.23 (2). The notice requirements of s. 713.23 apply
to any claim against the bond; however, the time limits for
serving any required notices shall begin running from the
later of the time specified in s. 713.23 or the date the
notice of bond is served on the lienor.
(f) The giving of a notice of commencement is effective upon
the filing of the notice in the clerk's office.
(g) The owner must sign the notice of commencement and no
one else may be permitted to sign in his or her stead.
(2) If the improvement described in the notice of
commencement is not actually commenced within 90 days after
the recording thereof, such notice is void and of no further
effect.
(3) The recording of a notice of commencement does not
constitute a lien, cloud, or encumbrance on real property,
but gives constructive notice that claims of lien under this
part may be recorded and may take priority as provided in
s. 713.07. The posting of a copy does not constitute a lien,
cloud, or encumbrance on real property, nor actual or
constructive notice of any of them.
(4) This section does not apply to an owner who is
constructing improvements described in s. 713.04.
(5)
(a) A notice of commencement that is recorded within the
effective period may be amended to extend the effective
period, change erroneous information in the original notice,
or add information that was omitted from the original
notice. However, in order to change contractors, a new
notice of commencement or notice of recommencement must be
executed and recorded.
(b) The amended notice must identify the official records
book and page where the original notice of commencement is
recorded, and a copy of the amended notice must be served by
the owner upon the contractor and each lienor who serves
notice before or within 30 days after the date the amended
notice is recorded.
(6) Unless otherwise provided in the notice of commencement
or a new or amended notice of commencement, a notice of
commencement is not effectual in law or equity against a
conveyance, transfer, or mortgage of or lien on the real
property described in the notice, or against creditors or
subsequent purchasers for a valuable consideration, after
1 year after the date of recording the notice of
commencement.
(7) A lender must, prior to the disbursement of any
construction funds to the contractor, record the notice of
commencement in the clerk's office as required by this
section; however, the lender is not required to post a
certified copy of the notice at the construction site. The
posting of the notice at the construction site remains the
owner's obligation. The failure of a lender to record the
notice of commencement as required by this
subsection renders the lender liable to the owner for all damages
sustained by the owner as a result of the failure. Whenever
a lender is required to record a notice of commencement, the
lender shall designate the lender, in addition to others, to
receive copies of notices to owner. This subsection does not
give any person other than the owner a claim or right of
action against a lender for failure to record a notice of
commencement.
713.132 Notice of termination. —
(1) An owner may terminate the period of effectiveness of a
notice of commencement by executing, swearing to, and
recording a notice of termination that contains:
(a) The same information as the notice of commencement;
(b) The recording office document book and page reference
numbers and date of the notice of commencement;
(c) A statement of the date as of which the notice of
commencement is terminated, which date may not be earlier
than 30 days after the notice of termination is recorded;
(d) A statement specifying that the notice applies to all
the real property subject to the notice of commencement or
specifying the portion of such real property to which it
applies;
(e) A statement that all lienors have been paid in full; and
(f) A statement that the owner has, before recording the
notice of termination, served a copy of the notice of
termination on the contractor and on each lienor who has
given notice. The owner is not required to serve a copy of
the notice of termination on any lienor who has executed a
waiver and release of lien upon final payment in accordance
with s. 713.20.
(2) An owner has the right to rely on a contractor's
affidavit given under s. 713.06 (3)(d), except with respect
to lienors who have already given notice, in connection with
the execution, swearing to, and recording of a notice of
termination. However, the notice of termination must be
accompanied by the contractor's affidavit.
(3) An owner may not record a notice of termination except
after completion of construction, or after construction
ceases before completion and all lienors have been paid in
full or pro rata in accordance with s. 713.06 (4). If an
owner or a contractor, by fraud or collusion, knowingly
makes any fraudulent statement or affidavit in a notice of
termination or any accompanying affidavit, the owner and the
contractor, or either of them, as the case may be, is liable
to any lienor who suffers damages as a result of the filing
of the fraudulent notice of termination; and any such lienor
has a right of action for damages occasioned thereby.
(4) A notice of termination is effective to terminate the
notice of commencement at the later of 30 days after
recording of the notice of termination or the date stated in
the notice of termination as the date on which the notice of
commencement is terminated, provided that the notice of
termination has been served pursuant to paragraph (1)(f) on
the contractor and on each lienor who has given notice.
