Florida. Need General info on Transfer of lien to security

[rlsebring]

What is the general procedure for a creditor to collect when a Lien is transferred to security by the debtor? Most counties I've worked with are simple forms to fill out while others require a motion. Volusia County told me this morning that I may need to file a lawsuit. First time encountering this.

Thanks for any help

 

[adjusterjack]

Volusia County

Florida?

What is the general procedure for a creditor to collect when a Lien is transferred to security by the debtor?

What kind of lien?

What "security"?

How was it "transferred."

 

[rlsebring]

Florida?



What kind of lien?

What "security"?

How was it "transferred."

Construction Lien
Transferred by Cash into the Courts Registry to remove the lien.

 

[rlsebring]

Thought my title would show up.. It is Florida

 

[adjusterjack]

Thought my title would show up.. It is Florida

It does.

Construction Lien
Transferred by Cash into the Courts Registry to remove the lien.

So, not a judgment lien. He posted a cash bond with the court to disencumber his home of the lien.

Yes, you will have to sue him to perfect your lien in order for the court to release any money to you. Anybody can record a construction lien whether it has merit or not. That's why you are given a limited amount of time (1 year per 713.22) to perfect the lien by filing suit and proving what is owed to you. You would have to sue anyway, according to the statute.

Here's a summary of Florida's construction lien law:

https://constructionliens.uslegal.com/state-laws/florida-construction-lien-law-summary/

The article cites statute numbers which you can find at:

http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0713/0713PartIContentsIndex.html&StatuteYear=2020&Title=->2020->Chapter 713->Part I

 

[rlsebring]

I've been reading 713 (in-between naps)

It's weird that other counties have been simple forms and motions. All of them so far have been un-contested liens by the lienee. I'll read through the links provided and determine if it's something I want to file or hire an attorney to handle. There's court cost money that applies to attorney fees included in the security.

Two notes: The Lien is dated by the lienor April 2020 but the file date by the court is September 2020. Is it expired or still good till September of this year?

I have filed to perfect judgments relatively simply before, Is perfect the lien fairly straight forward or should I expect complications?

Thank you for your input.

 

[zddoodah]

In order to enforce a mechanic's/construction lien (or cash or a bond posted to release the property from the lien), you have to prove your entitlement to the lien, which means proving you were eligible to file the lien, that you did the work, that the work was worth what you claim, etc. That always requires a lawsuit and can never be done with a simple form or motion. You would be well-advised to retain the services of a local attorney.

 

[rlsebring]

In order to enforce a mechanic's/construction lien (or cash or a bond posted to release the property from the lien), you have to prove your entitlement to the lien, which means proving you were eligible to file the lien, that you did the work, that the work was worth what you claim, etc. That always requires a lawsuit and can never be done with a simple form or motion. You would be well-advised to retain the services of a local attorney.

I believe you are right in this case. There have been two other counties that I collected with little fanfare. Those liens were not challenged within the time limit and may have been a fluke with the clerk/court process. I have found that a lot of the clerks don't have a lot of procedural knowledge.

 

[Litigator22]

What is the general procedure for a creditor to collect when a Lien is transferred to security by the debtor? Most counties I've worked with are simple forms to fill out while others require a motion. Volusia County told me this morning that I may need to file a lawsuit. First time encountering this.


For your purposes and much needed edification the critical language in the Florida Statute allowing the "transfer of liens to security" - either via a cash deposit or of the filing of a surety bond (FS 713.24) is as follows:

"Such deposit or bond shall be conditioned to pay any JUDGEMENT or DECREE which may be rendered for the satisfaction of the lien for which such claim of lien was recorded." (Emphasis added)

Accordingly and contrary to your representations there is NO procedure in any county within the state of Florida allowing the lien holder satisfaction of its recorded claim of lien from any such cash deposit or surety bond short of commencing a timely lawsuit and securing a judgment or decree!

 

[adjusterjack]

The Lien is dated by the lienor April 2020 but the file date by the court is September 2020. Is it expired or still good till September of this year?

"713.22 Duration of lien:
(1) A lien provided by this part does not continue for a longer period than 1 year after the claim of lien has been recorded"

Even if the lien expires, that doesn't prevent you from filing a lawsuit within the statute of limitations which is 5 years from the breach of a written contract and 4 years from the breach of an unwritten contract.

You need to be more precise in how you write things here. Maybe you shouldn't nap. First you wrote:

I have filed to perfect judgments relatively simply before,

Then you wrote:

There have been two other counties that I collected with little fanfare. Those liens were not challenged within the time limit

Which was it on those two occasions? Liens or judgments. Judgments would have allowed the clerks to release the judgment amount to you. If you didn't have judgments against those debtors one would have to review the court files to determine whether the clerks got it wrong or not.

 

[rlsebring]

I'm usually very careful with wording. It was both. 2 liens, one in Palm Beach County and one in Collier County. Neither had underlying suits or judgments they were however about to be escheated to the state of Florida in both cases. From the input here I would say the clerks got it wrong.

Over the past 23 years I have did numerous judgments.

I would like to say thanks for all the input. I'm in touch with an attorney in Volusia to see if I want tp pursue this or turn it back over to the client before I get any deeper involved.