What does notice of commencement mean

Surety if applicable, a copy of the payment bond is attached : a. Phone number:. Lender: name and address. Persons within the State of Florida designated by Owner upon whom notices or other documents may be served as provided by Section Phone numbers of designated persons:.

Phone number of person or entity designated by owner:. Expiration date of notice of commencement the expiration date will be 1 year from the date of recording unless a different date is specified. The failure to attach a copy of the bond to the notice of commencement when the notice is recorded negates the exemption provided in s. However, if a payment bond under s. The notice requirements of s. Because a lien could be filed against the property while the NOC is still in existence, we cannot close on the property and give clear title unless it is terminated.

A pro-active title company such as Downtown Title Services , will take the necessary steps to terminate the NOC for you. The Lien Waiver is then attached to the Termination of Notice of Commencement, which is signed by the owner, and it is then filed in the Public Records. It seems simple — right? These information will be very helpful should payment issues arise in the future. Pre-lien notices such as Notice to Owner and even the actual mechanics liens will require some or all of these information.

The top-of-chain party, typically the property owner or the general contractor, files the notice of commencement. This notice is served just before or shortly after work is performed on a project, and it is officially recorded at the local state office where the project is located. The Notice of Commencement must be signed by the property owner.

The legal name of the property owner must be clearly stated on the Notice, and the same person must also sign the document. If there are multiple property owners, one signature should be enough. However, for clarity and to ensure full compliance with the law, it is highly recommended that all legally registered property owners must provide their signature on the notice.

This is a good question since not all states have specific rules on filing a Notice of Commencement; most statutory regulations do not even mention the notice at all. However, filing a Notice of Commencement can be beneficial to all parties in a construction project. Some states like Ohio require the lender to record a notice before releasing funds to the contractor. There are also states like Florida in which the mechanics lien process is arguably kicked off by filing the Notice of Commencement.

Since a Notice to Owner is required in Florida, the project participants will rely on the information found on the NOC to fill their pre-lien notices. There are also states that require subcontractors to file a notice to inform the property owner or the general contractor that work has officially begun.

Keep in mind that the rules vary in every state, so make sure that you know the specific lien laws that govern your project. The lien laws in the following states explicitly require the property owner or the general contractor to file a notice of commencement: Florida, Georgia, Iowa, Michigan, and Ohio. Keeping track of the date recorded in the notice of commencement allows a subcontractor or a supplier to plan a schedule for submitting other vital documents.

If, say, the state requires the preliminary notice to be sent within 15 days after the project has started, the day count must begin with the date stated in the notice. If the state requires a property owner to file the Notice of Commencement, failing to do so is considered a serious violation of the law and could lead to financial consequences.

Ruiz Stewart J. Subjinski Melissa G. Media Contacts Charles B. Should I Terminate a Notice of Commencement? October 14, James O.

Birr, III, Esq. Construction Industry Legal Blog. How an Owner Properly Terminates a Notice of Commencement To properly terminate a Notice of Commencement, the owner must sign and swear to a Notice of Termination that includes the following information: The same information as the Notice of Commencement or attach a copy of the Notice of Commencement ; The recording office document book and page reference numbers and date of the Notice of Commencement or attach a copy of the Notice of Commencement ; A statement of the date the Notice of Commencement is terminated, which may not be earlier than 30 days after the Notice of Termination is recorded; A statement specifying the property to which the Notice of Termination applies; A statement that all lienors have been paid in full; and A statement that the owner has served a copy of the Notice of Termination on the contractor and on each lienor who has a direct contract with the owner or who has served a notice to owner.

Conclusion Property owners should be proactive and terminate a Notice of Commencement when certain circumstances arise. Authors: James O.