Checking This Before You Visit the Customer Can Save You Trouble

A two-minute ownership check can eliminate an unnecessary fight if you later need to enforce a construction lien

Before visiting a prospective customer, there is one small step that can make a major difference later:

Confirm who owns the property

Do not simply assume that the person who called you, met with you, or discussed the project is also the legal owner. Check the county records before the appointment. Then prepare your contract so that the actual owner of the property is identified as the customer and signs the agreement.

It may take only a few minutes. It can save your lawyer hours of work and eliminate an avoidable argument when it comes time to enforce a lien for unpaid work.

The Person Hiring You May Not Own the Property

Consider a common situation.

A husband contacts a contractor about replacing the roof. He meets the contractor at the house, approves the proposal, and signs the contract. The contractor completes the work, but the final payment never arrives.

The contractor then consults a lawyer about recording and enforcing a construction lien. The lawyer checks the property records and discovers that the house is titled solely in the wife’s name.

That does not necessarily mean that the contractor has no lien rights. Florida law contains a special provision addressing contracts made with one spouse for improvements to property owned by the other spouse or by both spouses. Under certain circumstances, the spouse who signed may be treated as the other spouse’s agent for purposes of subjecting the property to a construction lien.

But the contractor has now created an additional issue that must be investigated, supported with evidence, and potentially litigated.

Were the spouses living together? Did the owner know about the contract? Did the owner object? Did the owner participate in selecting the work? Did the owner communicate with the contractor? Did the owner make any payments?

Those questions may have answers favorable to the contractor. But they are still questions that would not have existed if the record owner had signed the contract.

Do Not Give the Property Owner an Unnecessary Defense

Florida’s Construction Lien Law generally ties lien rights to the interest of the person who contracted for the improvement. The statute also provides that when the contracting party has no ownership interest in the land, a lien generally does not attach to the land, subject to specific statutory exceptions such as the provision concerning married couples.

The lesson is not that every contract signed by the wrong spouse is worthless.

The lesson is that you should not voluntarily give a nonpaying customer another defense.

When a construction lien must be enforced, the property owner may examine every detail of the transaction for a reason the lien should fail. A mismatch between the name on the deed and the name on the contract gives the owner’s lawyer something to argue about.

Even when the contractor ultimately wins that argument, winning costs money.

Check Ownership Before You Leave for the Appointment

Before visiting the property, look it up through the county property appraiser’s website. Then confirm the ownership information by reviewing the most recent deed available through the county’s official records.

Determine:

• The exact name of each record owner.

• Whether the property is owned individually or jointly.

• Whether it is owned by a corporation, limited liability company, or trust.

• Whether the person you have been speaking with is actually one of the owners.

Then prepare the proposal and contract accordingly.

If both spouses own the property, obtain both signatures.

If only one spouse owns the property, make sure that spouse is identified in the contract and signs it.

If an LLC owns the property, identify the LLC as the customer and have the individual sign in an authorized representative capacity.

If a trust owns the property, make sure the contract correctly identifies the trust or trustee rather than treating the resident as the individual owner without further inquiry.

What If the Owner Is Not Available?

Sometimes the person meeting the contractor will say:

“My wife owns the house, but she is at work.”

“My husband handles the paperwork.”

“The property is in my company’s name, but I own the company.”

“My parents put the house into a trust, but it is really my house.”

Those statements may be perfectly innocent. They may also become the source of a serious dispute later.

Do not allow the excitement of closing the sale to override basic documentation. Send the contract electronically to the record owner. Arrange for the owner to sign later that day. Return for the signature if necessary.

A brief delay at the beginning of the project is much better than a title dispute after the work has been completed.

One Small Habit Can Strengthen Every Contract

Checking property ownership does not replace the other requirements of Florida’s Construction Lien Law. Contractors must still use proper contracts, include required notices, comply with applicable licensing requirements, preserve evidence, and meet strict notice and recording deadlines.

But ownership verification is one of the easiest precautions available.

Before you visit the customer:

Check the county records. Identify the owner. Prepare to obtain the owner’s signature.

You may never need to enforce the contract or record a lien. Hopefully, the customer pays in full and the ownership search becomes nothing more than a routine administrative step.

But when payment does not arrive, your lawyer will be grateful that the person who owned the property is also the person who signed the contract.

That is one fewer battle standing between you and the money you earned.

This article provides general information concerning Florida construction law and is not legal advice for any particular project or dispute. Construction lien rights depend upon the specific facts and strict compliance with statutory requirements.