Options When a Construction Lien is Recorded Against Real Estate
This article appeared in the "Consult the Counsel" special advertising section in the Orlando Business Journal on April 6, 2018.
Owners and contractors often seek advice about what to do when a construction lien is recorded against real property. Options for extinguishing the lien include:
- Do Nothing because a lien will be extinguished if a foreclosure action is not filed within 1 year of the lien recording.
- Record a Notice of Contest of Lien, which shortens the time for filing a foreclosure suit to 60 days. The lien is automatically extinguished if not sued upon within 60 days.
- File a Lawsuit to Show Cause, which reduces the time for foreclosing on a lien to 20 days. The lienor must, within 20 days of service of a complaint to show cause, demonstrate why his or her lien should not be enforced or cancelled.
- Transfer the Lien to Security, which can be accomplished by depositing a sum of money in the clerk’s office or filing a bond executed by a surety.
- Pay the Lienor to Obtain a Release of Lien.