Most homeowners assume that once they’ve paid their contractor, their job is done. But according to Mr. Phil Wilson, an industry expert in construction law, that assumption can lead to serious consequences.
“I’ve had this happen a lot where the contractor doesn’t pay somebody, and the owner says, ‘I paid him. How can I be liable?’”
The answer lies in Florida’s lien law—a set of protections for subcontractors and suppliers that can catch homeowners off guard. The law is designed to ensure that everyone who contributes labor or materials to a construction project gets paid. If someone down the chain isn’t paid, they can file a lien against your property, even if you’ve already paid your general contractor. That lien could turn into a legal judgment, or even a forced sale of your home if it isn’t resolved.
“The homeowner says, ‘I paid the contractor, so how can I be liable?’ Well, the contractor didn’t pay the sub, and the sub sent a notice to owner, and then a lien, and the law says he can do that.”
This dynamic creates a very real risk for homeowners who believe their payment to the contractor should cover everything. It’s a fair assumption—after all, you hired someone to manage the job and make sure everyone gets paid. But under the law, payment doesn’t always equal protection.
When you start a renovation or new construction project, you probably expect the process to be fairly straightforward: you hire a licensed contractor, agree on a scope of work, make scheduled payments, and enjoy your finished home. But the moment your contractor brings in a subcontractor or a supplier, you’re exposed to legal obligations you might not even know exist.
That’s where the Notice to Owner comes in.
“When you get a notice from the owner, it’s not because anybody’s mad or anybody’s done anything wrong. It’s a statutory prerequisite to filing a lien.”
In Florida, anyone who isn’t in a direct contract with you—like a tile supplier, electrician, or drywall sub—must send a Notice to the Owner within 45 days of beginning work or supplying materials. This legal document puts you on notice that they have the right to file a lien if they don’t get paid.
While many homeowners are alarmed to receive one, it’s simply part of the process. A Notice to the Owner isn’t a threat; it’s a procedural formality. What matters is how you respond.
“The lien law gives protection to the owner if the owner gets a release and relies on that release in making the payment.”
Every time you pay your contractor, you should be collecting lien releases or waivers from all parties who have sent a Notice to the Owner. These releases are signed confirmations that the parties have been paid up to a certain amount and are waiving their right to file a lien for that amount.
If you pay your contractor without collecting lien releases, and that contractor fails to pay a sub or supplier, your property is still at risk. The law doesn’t automatically protect you just because you wrote the check.
“If you pay without getting the release, you’re not protected. If you get the release and pay based on that, you are.”
This means that managing lien releases becomes one of the most important parts of your project administration, even if you’re just a homeowner doing a one-time kitchen renovation. It’s not enough to trust your contractor’s word—you need documentation.
There’s a common misconception that hiring a general contractor on a “turnkey” job absolves the homeowner of any responsibility for what happens behind the scenes. But as Mr. Wilson points out, that’s not how the law sees it.
“The homeowner’s position is: ‘Look, I hired a contractor to do a turnkey job. I shouldn’t have to mess with all this.’ And my response is: ‘Well, unfortunately, you do.’”
Homeowners are expected to take proactive steps to protect themselves. That includes tracking Notices to Owner, requesting and verifying lien releases, and ensuring that all payments are tied to proper documentation.
For most homeowners, this level of oversight is unexpected. But the burden is very real. The lien law is structured to prioritize payment to labor and materials providers, sometimes at the homeowner’s expense if due diligence is skipped.
To put this into perspective, imagine this scenario: You hire a contractor to remodel your kitchen. You pay $30,000 over several months as agreed. The contractor brings in a tile supplier, who sends you a Notice to Owner. You receive it, file it away, and think nothing of it. The contractor finishes the job, and you make your final payment. A month later, you receive a lien notice from that tile supplier claiming they were never paid.
You call your contractor, who says, “Yeah, I had some cash flow issues, but I’ll get them paid soon.” Meanwhile, the lien is active on your property. You can’t sell or refinance your home until it’s resolved, and if the supplier decides to sue to foreclose on the lien, you’re in court defending your payment history. The contractor, by then, might be out of business, unreachable, or bankrupt.
All of this could be avoided with one thing: collecting a lien release from the tile supplier before making each payment.
“The law says: contractor, if you don’t pay somebody, even though the owner’s paid you, if the sub or supplier followed the rules, they can still file a lien.”
This is a hard truth for homeowners. The rules don’t always seem fair, especially when you’ve done everything in good faith. But the law places the burden on the owner to protect themselves by following the process.
To reiterate Mr. Wilson’s advice:
- Don’t ignore a Notice to Owner. Keep a file of all notices received.
- Before making a payment to your contractor, ask for lien releases from everyone who has sent a notice.
- Don’t assume a verbal assurance from your contractor is enough.
- Work with a construction attorney or title company if the paperwork feels overwhelming.
It’s understandable to feel frustrated with a process that seems to shift responsibility from the professionals to the homeowner. But as Mr. Wilson emphasizes, the structure of the lien law isn’t accidental. It exists to ensure payment security across the entire chain of labor and material providers.
“The lien law is designed to make sure that everybody gets paid. If you’re a homeowner, you just need to know how to protect yourself.”
Education and diligence are key. With the right approach, you can navigate your renovation or construction project without fear of surprise liens. But it requires more than just cutting checks—it means managing paperwork, verifying payments, and holding your contractor accountable to a standard of transparency.
In the end, the best defense against lien liability is awareness. Know your rights, understand the process, and treat every payment as a checkpoint, not a finish line.
As Mr. Wilson says: “If you get the release and pay based on that, you are [protected].”
Pay smart. Protect your home. Don’t assume you’re safe just because the contractor cashed your check.
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