How does a lien on a condominium work?

As such, and by virtue of sections 10, 11 (2) and 11 (5) of the Condominium Act, registering a lien against the common elements requires a lien claimant to list all of the units in the “Properties” section of the claim for lien—thereby liening each unit in the condominium for its proportionate share in the common elements.

Do you have to give notice of construction lien?

Under the new Construction Act, a lien claimant who wants to register a lien that relates in whole or in part to an improvement to the common elements must give notice of the lien’s preservation to the condominium coropration and to every unit owner or every owner of a common elements condominium corporation (“ CEC ”) [11] ). [12]

What should be included in a lien claim form?

The Construction Act has prescribed a form that will be used for providing this notice. [13] , the prescribed form by the Cosntruction Act’s regulations (form no. 13) includes the lien claimanat’s name, address, a description of the premsies, a short description of the services or materials supplied and the amount claimed.

What are the common elements of a condominium?

“Common elements” are defined under the Condominium Act as “all the property except the units”. [6] Accordingly, “common elements” refer to the portions of the condominium that are not included in the “units” such as landscaped areas, parking lots, guest suites, recreational facilities, hallways, elevators and foyers.

What does a lien on a condominium mean?

Condominium association liens are the product of statute, then of the declaration of condominium and then of the association’s bylaws.

Can a condominium association collect a lien in Florida?

Prior to legislative changes enacted in 2004, an association could record a lien to collect a fine. But changes to Florida legislation in that year prohibited associations from imposing liens to collect a fine. F.S. 720.305 (2). The Condominium Act now specifically prohibits fines from being the basis for liens.

What do you need to know about a condominium declaration?

Once filed with the appropriate public official, this document establishes existence of project and divides airspace into layers of ownership”. A Condominium Declaration, also sometimes known as Master Deed, is a fundamental document that establishes the existence of and further governs the use and maintenance of a condominium property.

When does a condominium lien have to be extinguished?

Like construction liens, an action to foreclose a condominium lien must be brought within one year from the date the lien was recorded. If an action is not brought to foreclose the lien within one year, the lien is extinguished. However, the one year period may be reduced if a notice of lien contest is recorded.

Can a condo association file suit against a contractor?

The contractor’s settlement with the condo association was held as a separate transaction from the breach of contract between the unit owner and the contractor. Only the condo association, the unit owners, has the authority to file suit against a contractor or developer for negligent construction of a condo building:

Why are construction defects so common in condominiums?

Construction defects that allow water to penetrate are more likely in these types of building. Also, maintenance is more difficult and remediation efforts like mold removal are expensive. A contractor who is focused on developing multiple projects might see an opportunity to cut costs in construction.

Can a construction lien be filed against a condominium?

Registering construction liens against condominiums presents some unique challenges. This article will outline some of those challenges and present some check-lists that can be used to ensure a lien is properly registered.

Who is named in a lien for a condominium?

Similarly, in the subsequent lien action that will be brought to perfect the lien, the Statement of Claim will name only the individual registered owner of the unit (or units, as the case may be) and not the other unit holders or the condominium corporation.

Can a condominium be listed as a whole?

If this is the case, the potential lien claimant may be inclined to list the condominium as a whole on the lien, or to list the condominium association as the property owner. Both of these decisions would likely be incorrect, and could result in the invalidation of the lien were it to be challenged.

Can a condominium association contract to do work?

The answer to this question may seem more convoluted, however, if the work is commissioned by the condominium association/property manager. In an emergency situation, a condominium association may be allowed to contract for work to be done on individual condominium units.