A contractor receives a Notice to Owner from a subcontractor. Under Florida lien law, what action should the contractor take to protect themselves?
Correct Answer
C) Forward the notice to the owner within 15 days
Florida Statute 713.06 requires that when a contractor receives a Notice to Owner from a subcontractor or supplier, they must forward it to the owner within 15 days to maintain proper lien notice procedures.
Why This Is the Correct Answer
Under Florida Statute 713.06, contractors have a statutory duty to forward any Notice to Owner received from subcontractors or suppliers to the property owner within 15 days. This requirement ensures proper notice procedures are maintained throughout the lien process and protects all parties' rights. Failure to forward the notice within the required timeframe can expose the contractor to liability and disrupt the lien notice chain. This forwarding requirement is mandatory, not optional, and helps maintain transparency in the construction payment process.
Why the Other Options Are Wrong
Option A: Ignore it since they have a direct contract with the owner
This is incorrect because having a direct contract with the owner does not eliminate the contractor's statutory obligation to forward notices. The Notice to Owner serves important legal purposes beyond the contractor-owner relationship, including protecting subcontractors' lien rights and keeping owners informed of all parties working on their property.
Option B: Immediately terminate the subcontractor
Terminating the subcontractor would be an extreme and inappropriate response to receiving a Notice to Owner. The notice is a standard legal document that subcontractors are required to serve to protect their lien rights, not grounds for termination. Such action could expose the contractor to breach of contract claims.
Option D: File a counter-lien against the subcontractor
Filing a counter-lien is not a recognized legal response to receiving a Notice to Owner. A Notice to Owner is not a lien itself, but rather a preliminary notice that preserves lien rights. Counter-liens are not standard legal instruments in Florida construction law, and this action would not fulfill the contractor's statutory obligations.
Memory Technique
Think 'Pass it Forward in 15' - contractors must forward Notice to Owner documents to the property owner within 15 days, like passing a message down the chain of command.
Reference Hint
Florida Statutes Chapter 713 - Construction Liens, specifically Section 713.06 regarding Notice to Owner requirements
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