Legal Question in Construction Law in Florida
notice of commencement
The contractor who built a home on our lot, stated in our purchase contract that the home would be finished within 2 years. It took them 2 years and 3 months. We paid them after the expiration of the one year-notice of commencement over
$128,000. Whose responsibility was it to extend the notice of commencement, and do they have to refund funds paid after the notice of commencement expired?
1 Answer from Attorneys
Re: notice of commencement
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RESPONSE: Look at Florida Statute section 713.13 regarding notices of commencement. http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=Ch0713/Sec13.htm
It provides in part that "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."
...(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.
As far as having to refund money just because the Notice of Commencement expired, this is not what the law provides, and therefore you would not be entitled to a refund on those grounds alone.
Good luck,
Randall Gilbert
www.theconstructionlawyers.com
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