The 2023 Florida Statutes (including Special Session C)

Title XL
REAL AND PERSONAL PROPERTY

Chapter 713
LIENS, GENERALLY

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F.S. 713.245

713.245 Conditional payment bond.—

(1) Notwithstanding any provisions of ss. 713.23 and 713.24 to the contrary, if the contractor’s written contractual obligation to pay lienors is expressly conditioned upon and limited to the payments made by the owner to the contractor, the duty of the surety to pay lienors will be coextensive with the duty of the contractor to pay, if the following provisions are complied with:

(a) The bond is listed in the notice of commencement for the project as a conditional payment bond and is recorded together with the notice of commencement for the project prior to commencement of the project.

(b) The words “conditional payment bond” are contained in the title of the bond at the top of the front page.

(c) The bond contains on the front page, in at least 10-point type, the statement: THIS BOND ONLY COVERS CLAIMS OF SUBCONTRACTORS, SUB-SUBCONTRACTORS, SUPPLIERS, AND LABORERS TO THE EXTENT THE CONTRACTOR HAS BEEN PAID FOR THE LABOR, SERVICES, OR MATERIALS PROVIDED BY SUCH PERSONS. THIS BOND DOES NOT PRECLUDE YOU FROM SERVING A NOTICE TO OWNER OR FILING A CLAIM OF LIEN ON THIS PROJECT.

(2) Except as specified in this section, all bonds issued under this section must conform to the requirements of s. 713.23(1)(a), (b), (f), and (4). No action shall be instituted or prosecuted against the contractor or the surety after 1 year from the date the lien is transferred to the bond.

(3) The owner’s property is not exempt from liens filed under this part. All lienors must comply with the provisions of this part to preserve and perfect those lien rights.

(4) Within 90 days after a claim of lien is recorded for labor, services, or materials for which the contractor has been paid, the owner or the contractor may record a notice of bond as specified in s. 713.23(2), together with a copy of the bond and a sworn statement in substantially the following form:

CERTIFICATE OF PAYMENT
TO THE CONTRACTOR

TO: Lienor (name and address from claim of lien)

Contractor (name and address)

Surety (name and address)

Under penalties of perjury, the undersigned certifies that the bond recorded with this certificate conforms with s. 713.245, F.S., that the bond is in full force and effect, and that the contractor has been paid $ for the labor, services, and materials described in the Claim of Lien filed by dated , (year) , and recorded , (year) , in Official Records Book at Page of the Public Records of County, Florida.

Dated this day of , (year) .

(Owner)

(Address)

STATE OF FLORIDA

COUNTY OF

Sworn to (or affirmed) and subscribed before me this day of , (year) , by (name of person making statement) .

(Signature of Notary Public - State of Florida)

(Print, Type, or Stamp Commissioned Name of Notary Public)

Personally Known OR Produced Identification

Type of Identification Produced

(Contractor)

(Address)

STATE OF FLORIDA

COUNTY OF

Sworn to (or affirmed) and subscribed before me this day of , (year) , by (name of person making statement) .

(Signature of Notary Public - State of Florida)

(Print, Type, or Stamp Commissioned Name of Notary Public)

Personally Known OR Produced Identification

Type of Identification Produced

Any notice of bond recorded more than 90 days after the recording of the claim of lien shall have no force or effect as to that lien unless the owner, the contractor and the surety all sign the notice of bond.

(5) The clerk shall serve a copy of the notice, the bond, and the certificate on the contractor, the surety, and the lienor; certify to the service on the face of the notice, the bond, and the certificate; record the notice, the bond, and the certificate; and collect a fee in accordance with s. 713.23(2).

(6) The contractor may join in a certificate of payment to the contractor at any time by recording a sworn statement substantially in the following form:

JOINDER IN CERTIFICATE OF PAYMENT

TO: Owner (name and address from certificate of payment)

Lienor (name and address from claim of lien)

Surety (name and address)

The undersigned joins in the Certificate of Payment to the Contractor recorded on , (year) , in Official Records Book at Page of the Public Records of County, Florida, and certifies that the facts stated in the Certificate of Payment to the Contractor are true and correct.

Dated this day of , (year) .

(Name)

(Address)

STATE OF FLORIDA

COUNTY OF

Sworn to (or affirmed) and subscribed before me this day of , (year) , by (name of person making statement) .

(Signature of Notary Public - State of Florida)

(Print, Type, or Stamp Commissioned Name of Notary Public)

Personally Known OR Produced Identification

Type of Identification Produced

(7) The clerk shall serve the joinder in certificate of payment on the owner, the surety, and the lienor; certify to the service on the face of the joinder; record the joinder; and collect a fee in accordance with s. 713.23(2).

(8) If the contractor disputes the certificate of payment to the contractor, the contractor must record, not later than 15 days after the date the clerk certifies service of the certificate, a sworn statement in substantially the following form:

NOTICE OF CONTEST OF PAYMENT

TO: Owner (name and address from certificate of payment)

Lienor (name and address from claim of lien)

Surety (name and address)

Under penalties of perjury, the undersigned certifies that the contractor has not been paid or has only been paid $ for the labor, services, and materials described in the Certificate of Payment to the Contractor recorded in Official Records Book at Page of the Public Records of County, Florida.

Dated this day of , (year) .

(Name)

(Address)

STATE OF FLORIDA

COUNTY OF

Sworn to (or affirmed) and subscribed before me this day of , (year) , by (name of person making statement) .

(Signature of Notary Public - State of Florida)

(Print, Type, or Stamp Commissioned Name of Notary Public)

Personally Known OR Produced Identification

Type of Identification Produced

(9) The clerk shall serve a copy of the notice of contest of payment on the owner, the lienor, and the surety; certify service on the face of the notice; record the notice; and collect a fee in accordance with s. 713.23(2).

(10) If the contractor has signed the certificate of payment to the contractor or the joinder in the certificate or the contractor fails to record a notice of contest of payment within 15 days after the date the clerk certifies service of a certificate of payment to the contractor signed by the owner, the lien shall transfer to the bond to the extent of payment specified in the certificate of payment to the contractor. To the extent the lien exceeds the amount specified in the certificate of payment to the contractor, such amount shall remain as a lien on the owner’s property. The surety may assert all claims or defenses of the owner regarding the validity of the claim of lien or of the contractor regarding the amount due the lienor.

(11) If the notice of contest of payment specifies that the contractor has been paid a portion of the amount due the lienor, the lien shall transfer to the bond to the extent of the payment specified in the notice of contest of payment. To the extent the lien exceeds the amount specified in the notice of contest of payment, such amount shall remain as a lien on the owner’s property. The surety may assert all claims or defenses of the owner regarding the validity of the claim of lien or of the contractor regarding the amount due the lienor.

(12) If there are any material misstatements of fact made by the owner or the contractor in any certificate of payment to the contractor, or by the contractor in any notice of contest of payment, the person making the material misstatement is guilty of a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084. The penalties apply individually and to the business entity if the false certificate is signed in a representative capacity.

(13) The certificate of payment to the contractor and the notice of contest of payment must be signed by the owner or the contractor individually if she or he is a natural person, by the general partner if the owner or the contractor is a limited partnership, by a partner if the owner or the contractor is a general partnership, by the president or a vice president if the owner or the contractor is a corporation, or by any authorized agent if the owner or the contractor is any other type of business entity.

(14) In an action to enforce a lien, the owner shall not be considered the prevailing party solely because the lien is transferred to a conditional payment bond after the action to enforce the lien is brought.

History.—s. 13, ch. 90-109; s. 9, ch. 92-286; s. 3, ch. 93-99; s. 58, ch. 95-211; s. 814, ch. 97-102; s. 16, ch. 98-246; s. 9, ch. 2001-211.

F.S. 713.245 on Google Scholar

F.S. 713.245 on Casetext

Amendments to 713.245

Arrestable Offenses / Crimes under Fla. Stat. 713.245

Level: Degree
Misdemeanor/Felony: First/Second/Third

S713.245 12 - FRAUD-FALSE STATEMENT - BY OWNER CONTRACTOR CERTIFICATION OF PAYMENT - F: T

Annotations, Discussions, Cases:

Cases from cite.case.law:

UNIVERSAL CONCRETE PRODUCTS v. TURNER CONSTRUCTION COMPANY,, 595 F.3d 527 (4th Cir. 2010)

. . . . § 713.245 (2009), as recognized in, WMS Constr., Inc. v. . . . Stat. § 713.245). . . .

PHOENIX WALLS, INC. v. LIBERTY PASADENA, LLC,, 980 So. 2d 1286 (Fla. Dist. Ct. App. 2008)

. . . 15554, Pages 622-626 of the Public Records of Pinellas County, Florida, pursuant to the provisions of § 713.245 . . . conditional payment bond on which International Fidelity Insurance Company is the surety pursuant to section 713.245 . . .

WMS CONSTRUCTION, INC. v. NORTH AMERICAN SPECIALTY INSURANCE COMPANY,, 929 So. 2d 1 (Fla. Dist. Ct. App. 2005)

. . . See § 713.245(4), Fla. Stat. (1997). . . . The trial court found that the claim against the section 713.245 conditional payment bond was barred . . . (“Noland”) as required by section 713.245(4); B. . . . Thus, WMS’ claim of lien was never transferred to the section 713.245 conditional payment bond. . . . That statute reads in relevant part: 713.245. . . .

GARRIDO d b a R. G. v. NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA JMAC, 891 So. 2d 1091 (Fla. Dist. Ct. App. 2004)

. . . The owner then filed a notice of bond, issued pursuant to section 713.245, Florida Statutes. . . . jurisdiction over actions against transfer bonds and claims that have been transferred to bonds via section 713.245 . . . Tiede-Zoeller Tile Corp., 522 So.2d 111 (Fla. 5th DCA 1988), as to National Union’s contention that section 713.245 . . .

PENA- ALUM GLASS MIRROR, v. NATIONWIDE TERMINALS, INC., 864 So. 2d 461 (Fla. Dist. Ct. App. 2003)

. . . The bond bore the legend required for a conditional payment bond under section 713.245, Florida Statutes . . .

EVERETT PAINTING COMPANY, INC. a v. PADULA WADSWORTH CONSTRUCTION, INC. a a, 856 So. 2d 1059 (Fla. Dist. Ct. App. 2003)

. . . Under section 713.245, Florida Statutes (1997), a surety may limit its liability by including conditional . . . a conditional payment bond, the surety must include specific language that is identified in section 713.245 . . . Therefore, we do not know if Surety included the necessary language under 713.245 in order to create . . . However, even if it did contain the language in section 713.245, Surety did not have the ability to create . . . Section 713.245, states that the front page of the bond must contain the following statement in at least . . .

WMS CONSTRUCTION, INC. v. PALM SPRINGS MILE ASSOCIATES, LTD., 762 So. 2d 973 (Fla. Dist. Ct. App. 2000)

. . . Section 713.245(3), Florida Statutes (1997). . . . We specifically hold that section 713.245 cannot be so circumvented. . . . Governed by § 713.245, Fla. Stat. (1997). It is also referred to as a "pay-when-paid” bond. . . . . Sobel, Section 713.245 Conditional Payment Bonds—Panacea or Pandora?, Fla. . . . There is nothing in section 713.245 indicating a retroactive application was intended. . . .

NORTH AMERICAN SPECIALITY INSURANCE COMPANY, v. BERGERON LAND DEVELOPMENT, INC., 745 So. 2d 359 (Fla. Dist. Ct. App. 1999)

. . . of action under section 713.23, and failure to satisfy conditions precedent to payment under section 713.245 . . . should be treated as a payment bond under section 713.23 or a conditional payment bond under section 713.245 . . . that the claim of lien has been transferred to the Conditional Payment Bond, all as required under § 713.245 . . . Obviously, announcing a defense based on section 713.245 is not the same as stating a defense based on . . .

NORTH AMERICAN SPECIALTY INSURANCE COMPANY, a v. HUGHES SUPPLY, INC., 705 So. 2d 616 (Fla. Dist. Ct. App. 1998)

. . . The payment bonds furnished by the surety to the contractor contained the legend specified in section 713.245 . . . This argument, however, neglects the first sentence of section 713.245(1), which reads: Notwithstanding . . . on a bond does not require application of section 713.245 when the contract between the contractor and . . . Section 713.245 itself is specifically limited, only recognizing that the duty of the surety to pay is . . . Thus, a bond which would have been a conditional payment bond (§ 713.245), but for the absence of a “ . . .