Under Florida's Construction Lien Law, a lien may be transferred by any person having interest in the real property upon which the line is imposed or the contract under which the lien is claimed from such property by either (1) depositing a sum with the clerk's office; or (2) filing a surety bond with the clerk. See Fla. Stat. § 713.24(1).
The provisions of Florida's Construction Lien Law that permit the transfer of the lien are intended to allow a property owner of property to remove a cloud on the title of real property and clear it for sale or additional financing. The owner may transfer a lien in this manner either before or during a lawsuit on the lien. See e.g. Williams, Hatfield & Stoner Inc v. A & E Design, Inc., 538 So. 2d 505 (Fla. 4th DCA 1989).
The amount of the payment or the bond must be either in the amount demanded in such claim of lien, plus interest thereon at the legal rate for 3 years, plus $1,000 or 25 percent of the amount demanded in the claim of lien, whichever is greater, to apply on any attorney's fees and court costs that may be taxed in any proceeding to enforce said lien. See Fla. Stat. § 713.24(1). An owner of improved real property is entitled to recover as damages the cost involved in having an invalid construction lien transferred to a bond. See Gentile v. F. Gaudio Tile and Marble Creations, Inc., 596 So. 2d 175 (Fla. 4th DCA 1992).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
