Critical Provisions for Residential Contracts
When entering a residential contract, it is crucial that you have your contract reviewed by a competent Jacksonville contractor lawyer to guard yourself against any risks or liabilities.
In Florida, residential contractors are legally required to include certain provisions in their contracts. In this short article, we will discuss the Florida Lien Law Disclosure and the Florida Homeowners’ Construction Recovery Fund. Failure to include theses mandatory provisions could expose you to civil liability.
The Lien Provision for Direct Contracts
Direct contracts between owners and contractors for the improvement of up to four units of single or multiple family dwellings in excess of $2,500 must contain the lien rights provision. The notice provision should be located on a separate page or the front page of your contract, at least 12-point font, bolded, and capitalized, and signed and dated by the owner. If your contract is oral or implied, the notice must be provided in a document referencing the contract. The provisions can be found in section 713.015, of the Florida Statutes and should be included in your contract verbatim.
This provision gives contractors the right to claim a lien against a property when they have not been paid in full for work and materials provided for the improvement of a property. Because lien law is complex, you are strongly encouraged to consult a Jacksonville construction lawyer to ensure your contract contains the proper language.
Florida’s Homeowners’ Construction Recovery Fund
Established in 1993, the Homeowners’ Construction Recovery Fund compensates homeowners that experience monetary damages when a contractor violates certain contract provisions. Section 489.1425 of the Florida Statutes specifically mandates contractors to notify residential property owners of the recovery fund. This provision applies to any contract for the repair, restoration, improvement, or construction of residential real property in excess of $2,500. The provision language must be included in the contract along with the Florida Construction Industry Licensing Board’s address and telephone number. A contractor that fails to include this provision can be fined up to $500 for the first violation and $1000 for subsequent violations.