If you're planning a bigger home project in Florida, you'll likely be asked to sign a Notice of Commencement. It looks like routine paperwork, but it's part of the system that protects you from paying twice for the same work. Here's what it is and what to do.
What it is
A Notice of Commencement is a short form, recorded in the county's official records, that says an improvement is starting on your property. Under Florida law:
- The owner records it in the clerk's office before work on the property begins.
- The owner must sign it. Florida law says no one else may sign in the owner's place.
- It becomes void if work doesn't start within 90 days after it's recorded, and by default it's effective for one year.
Why it matters: paying twice
The form itself carries a warning in capital letters: payments made after it expires are improper, and they can result in your paying twice for improvements to your property. Florida requires building permit cards to carry a similar warning about not recording one.
Here's why. In Florida, subcontractors and suppliers who worked on your home can have lien rights on your property even though you paid the main contractor. The Notice of Commencement, the Notice to Owner and lien releases work together so you know who is owed money and can make sure they're paid.
When you need one
- Florida law exempts improvements where the direct contract price is $2,500 or less from most of these rules.
- On the permit side, a copy of the recorded notice must be filed with the building department before the first inspection when the direct contract is greater than $5,000.
- That permit rule doesn't apply to a direct contract to repair or replace an existing heating or air-conditioning system for less than $15,000.
In Broward County's own permitting instructions, a Notice of Commencement is required for jobs valued at $5,000 or more, and for $15,000 or more on AC repair or replacement. The county's packet says it's filed with the Records, Taxes and Treasury Division at 115 South Andrews Avenue, Room 114, Fort Lauderdale (954-831-4000, records@broward.org). Cities with their own building departments may have their own instructions, so check with the one issuing your permit.
The Notice to Owner
A subcontractor or supplier who doesn't have a contract directly with you may send you a Notice to Owner. Florida law says it must be served before they start, or no later than 45 days after they start, furnishing labor or materials. The form warns that if they aren't paid, it may result in a lien against your property and your paying twice.
A Notice to Owner isn't a bill and doesn't mean anything is wrong. It's a list of who to make sure gets paid. Keep every one you receive.
Releases and the final payment affidavit
- Florida law says lienors who receive money must give partial releases for it. Ask your contractor for a release of lien each time you make a payment, and from anyone who sent you a Notice to Owner.
- Before final payment, your contractor gives you a final payment affidavit stating that all lienors have been paid, or listing who hasn't been paid and how much. Florida law requires the contractor to deliver it at least 5 days before filing any action to enforce a lien.
A simple checklist
- If your project is over the threshold, sign and record the Notice of Commencement before work starts, or make sure your contractor does it with your signature.
- Keep a folder: the recorded notice, every Notice to Owner, and every release of lien.
- Pay in stages, and get a release of lien with each payment.
- Get the final payment affidavit before the last check.
- Make sure your contractor is licensed for the work: our free license check takes two minutes.
This is general information, not legal advice. For a large project, a real estate attorney can review your contract and lien paperwork.