What is a Notice to Owner?
A Notice to Owner, often called an NTO, is a written notice used in Florida construction projects to inform the property owner that the sender has provided labor, services, or materials for the improvement of the property.
In many cases, the sender is a subcontractor, supplier, or other party who does not have a direct contract with the property owner. The notice helps make the owner aware of the sender’s involvement and helps protect the sender’s potential lien rights if payment is not made.
Actual or verbal notice is not a substitute for the written Notice to Owner required by Florida law.
We offer both Full-Service and eNotice (Self-Serve) Notice to Owner services. With over 50 years of experience, Builders Notice will work to protect your right to get paid.
When Must a Notice to Owner Be Served in Florida?
In Florida, a Notice to Owner generally must be served no later than 45 days from the date the lienor first furnishes labor, services, or materials to the job site. Because this deadline is strict, subcontractors and suppliers should not wait until a payment problem occurs before sending the notice.
Why Is a Notice to Owner Important?
Serving a Notice to Owner is an important step for protecting payment rights on Florida construction projects. It lets the owner know who is furnishing labor, services, or materials to the job and gives the owner an opportunity to confirm that downstream parties are being paid.
A timely Notice to Owner can help improve communication, support better payment tracking, and preserve the sender’s right to file a construction lien if payment issues arise later. For many subcontractors and suppliers, serving an NTO on every job is a practical part of protecting cash flow and reducing payment risk.
Who Should Serve the Notice to Owner?
Any potential lienor who is not dealing directly with the property owner, such as a subcontractor or supplier, must serve a notice to owner with three exceptions. A laborer, a professional lienor, and a person who is working only on subdivision improvements need not serve a Notice to Owner to secure the right to lien. All other potential lienors who are not dealing directly with the owner must timely serve a Notice to Owner as a preliminary step to obtaining lien rights. This notice must be timely served, as a precautionary measure, even where no problem has yet developed, if one wants to be able to later claim lien rights. If this preliminary step is not taken when required, the right to later claim a construction lien against the property may be lost.
What Does "Served" Mean?
The Florida Construction Lien Law (Fla. Stat. 713.18) provides specific methods for delivery of the Notice to Owner. The statute uses the terms “serve” and “service,” defined as “delivery in a particular way” and provides the following options:
(a) Actual Delivery: By actual delivery to the person to be served; if a partnership, to one of the partners; if a corporation, to an officer, director, managing agent, or business agent; or, if a limited liability company, to a member or manager.
(b) Certified or Registered Mail: By sending the same by registered or certified mail, with postage prepaid, or by overnight or second-day delivery with evidence of delivery, which may be in an electronic format.
(c) Posting at the Jobsite: If the method specified in paragraph (a) or paragraph (b) cannot be accomplished, by posting on the premises.
What is a Release of Lien?
A Release of Lien is a document that releases lien rights according to the terms stated in the release. A release may apply to a specific dollar amount, to lien rights through a specific date or payment period, or to both.
Florida law provides standard release forms, but releases may contain wording that differs from the statutory form. Because the language of a release can affect lien rights, it is important to review the document carefully before signing or accepting it.
If you are giving a release, make sure you are not releasing more than intended. If you are making payment and receiving a release, make sure the release matches the amount paid and the work or materials being covered.
Who must Serve Copies of the Notice to Owner?
If there is a party between your customer and the owner, that party may also need to receive a copy of the Notice to Owner.
For example, if you are a material supplier to a subcontractor, or if you are a sub-subcontractor, you may need to serve a copy of the Notice to Owner on the prime contractor. If you are supplying materials to a sub-subcontractor, the contractor may also need to receive a copy. In some cases, if the supplier knows who the subcontractor is, a copy should also be served on the subcontractor dealing with the customer.
It is also a good practice to provide your customer with a copy, even when it is not legally required.
What if I don't want to keep track of all of these procedures and time periods myself?
That’s where we come in. Builders Notice Corp. has over 50 years of experience in property search, and preparation and service of Notices to Owner. We are not attorneys and do not give legal advice.
Give us a try today with a Full-Service test NTO. Just give us your information and we will thoroughly research and prepare a real Notice to Owner for one of your jobs which you may view without any obligation to you.
Then, if you’re ready to continue and serve the Notice to Owner, we will create your billing account and take care of the rest.