Florida Construction Lien Law; Fla. Stat. Ch. 713

Florida Construction Liens: Insurance Proceeds and Construction Liens

When an improvement covered by property damage insurance is damaged or destroyed and the owner, contractor, or subcontractor is paid for the destroyed improvement, the person or entity receiving the insurance proceeds holds those funds in trust for the lienors holding liens related to the destroyed or

When entering into a lease, especially for commercial property, the parties often contemplate that the tenant will make improvements to the leased premises. The question arises: is the property subject to a construction lien where the contract for improvements is with the tenant? The Florida Supreme Court answered this question with the following test:

If

I.  Introduction

A claim of lien is an encumbrance against real property created by state law for the purpose of securing payment for labor, materials, or services expended to improve the real property. While there are many types of liens, the most important class of liens to contractors and subcontractors working in Florida were traditionally