Financial risk management

Florida attorney Neal Ian Sklar just this week published a really informative Legal Guide about Florida Construction Liens over at the lawyer rating website,

The guide starts out by identifying the “dual purpose” of Florida’s construction lien statutes.   While the author is speaking about Florida law only, the “dual purpose” breakdown is really applicable across the country.

What is this dual purpose?

Well, on the one hand, lien statutes are crafted to protect contractors, subcontractors, suppliers and design professional’s right to get paid for work put into a project.   The law, in other words, doesn’t want a property owner to benefit from the improvements to property without paying the folks who put the time and materials therein.

You may be thinking “of course.”

The other purpose is a bit more hidden in the statutes.   That purpose is to protect property owners from having their property improperly or unreasonably encumbered.

To balance these two purposes, lien laws across the country can sometimes feel schizophrenic.

Neal’s legal guide over on Avvo discusses the Florida lien laws in this context, and he does a good job of explaining how the two purposes are served by the Florida statutes.

While lien laws vary from state-to-state, understanding the “dual purposes” of these statutes provides contractors, subcontractors, suppliers and others a big picture understanding of how these statutes work…which, although each state’s laws are different, gives them a good grasp on the general rules they’ll need to follow to successfully use the laws.

And when a state’s specific requirements are needed…consult a great legal guide like Neal’s.

Florida Mechanics Lien Guide Download