When can a lien be placed against a homestead in Florida?

A lien can typically be placed against a homestead in Florida under two circumstances. 1) A voluntary lien you give your mortgage company and 2) a construction lien when someone supplies material or labor to improve your home.

Chrissy: This one is saying, “A contractor placed a lien against their home.” I’m assuming it has to do with something with the construction that was happening with the home. They’re saying, “Hey, how can this contractor do this without any notice to me?”

Attorney Tom Olsen: First of all, on this radio show, we’re always talking about how here in the State of Florida, your homestead, the home you live in is absolutely protected from creditor claims, doctors, hospitals, credit cards, automobile accidents, Medicaid, you name it.

There’re a couple exceptions to that. One is a voluntary lien. When you go down to the bank and you sign the mortgage loan, you’re voluntarily giving the bank a lien against your home. The other one is, is when somebody has supplied either labor or materials to improve your home, they have a right to put a lien against your home for unpaid materials or labor. There is a process for somebody to be able to put a valid lien against your home when they materials or labor. It certainly requires that they give a notice to owners and file timely liens. If they’ve not done so, then their lien would be invalid.

Now, when somebody files this construction lien for unpaid materials or labor, all it does is it gives them a right to foreclose that lien within one year. One year after that construction lien has been filed or recorded, and that construction person does not do anything about it, that lien goes away automatically. I don’t know enough facts to tell this whether that’s a valid lien or not, but I can tell them that if they do nothing one year from now, it’ll go away all by itself.

Chrissy: I’m sure that that will be helpful for them to know.

Attorney Tom Olsen: All right. Hey, folks, my name is Tom Olsen. The name of the show is Olsen on Law. You’re listening to News 96.5.