What to Do When a Construction Lien Threatens Your Real Estate Deal

If you are buying or selling property in Florida and suddenly find out there is a construction lien recorded on the property, it can feel like someone pulled the emergency brake on your deal. Closings get delayed, title companies cannot move forward, buyers get nervous, and sellers feel blindsided.

If this is happening to you right now, you are not alone. Construction liens are common in Florida’s real estate and construction world, and they do not always appear because someone intentionally did something wrong. Sometimes it is a payment dispute. Sometimes it is a misunderstanding. Sometimes work was performed, but the parties simply do not agree on whether it was done correctly.

The important thing is this: a construction lien does not automatically kill your deal, but it does require fast, smart legal action.

What Is a Construction Lien and Why Does It Affect My Property Sale or Closing?

Florida law allows contractors, subcontractors, laborers, suppliers, and certain professionals to file a Claim of Lien when they believe they were not paid for work or materials that improved a property. Once recorded, the lien attaches to the property itself, not just the person who owes the money.

That means:

• Title companies usually will not close while a lien is active
• Buyers risk inheriting the dispute if they close without resolving it
• Sellers may not be able to transfer clean title

If you are in the middle of a real estate transaction, a lien is a serious issue — but it is also a legal problem with legal solutions.

Can You Still Close on a Property With a Construction Lien in Florida?

Most of the time, no, at least not without addressing it. Title insurers typically require a clear title before issuing a policy. A lien clouds title and creates risk.

However, resolving a lien does not always mean “pay whatever they are demanding.” Florida law gives property owners powerful tools to remove, challenge, or neutralize liens so a deal can move forward.

What Are Your Options to Remove or Resolve a Construction Lien in Florida?

Here are the most common legal paths we help clients take when a lien threatens their deal:

Option 1: Negotiate and Exchange a Lien Release

Sometimes the fastest and most cost-effective approach is to negotiate. That may involve:

• Confirming whether the amount claimed is accurate
• Ensuring work was actually performed
• Reaching a settlement or confirming payment
• Obtaining a Lien Release or Satisfaction of Lien

This is especially effective when the lien claimant filed the lien as a pressure tactic rather than as part of a legitimate dispute.

Option 2: Bond Off the Lien to Keep the Deal Moving

Florida law allows property owners to transfer a lien from the property to a surety bond. This process is commonly referred to as “bonding off” the lien.

What does that do?

• The lien comes off the property title
• The real estate transaction can usually proceed
• The dispute continues, but now attaches to the bond instead of the property

This can be extremely useful when time is critical and closing deadlines are approaching.

Option 3: File a Lawsuit to Contest or Discharge the Lien

Not all liens are valid. Florida has strict technical requirements, including:

• Filing deadlines
• Notice requirements
• Proper statutory language
• Accurate amounts claimed

A lien that fails to comply may be invalid and subject to removal. Your attorney may file an action to discharge or contest the lien when appropriate.

Option 4: Use Florida’s “Notice of Contest” or “Demand for Enforcement”

Florida owners have tools to force lien claimants to act quickly or lose their lien rights. For example:

• A Notice of Contest shortens the time a lienor has to file suit
• A Demand for Enforcement can require the lienor to enforce or lose the lien

These strategies put pressure back on the party who filed the lien instead of letting the lien sit over your property and stall your transaction.

How Long Does a Construction Lien Last in Florida?

Generally, a Florida construction lien can remain enforceable for one year unless action is taken to shorten that period or unless the lienor files a foreclosure lawsuit earlier. However, every case is fact-specific, and deadlines matter. Waiting usually helps the lien claimant, not the property owner.

What Should You Do First When a Construction Lien Puts Your Deal at Risk?

If you have a lien threatening your real estate closing, here are smart first steps:

1. Do not panic, but do not ignore it
2. Contact an experienced Florida construction and real estate attorney quickly
3. Do not negotiate blindly or assume you must pay the full claimed amount
4. Let counsel coordinate with your title company, broker, and closing agent

With the right legal strategy, many deals can still close. The key is addressing the lien correctly instead of reacting out of stress or pressure.

Why Working With a Florida Construction Litigation Firm Matters

Construction liens sit at the intersection of real estate law and construction law, and Florida’s statutes are highly technical. A mistake can cost time, money, and in some cases, the entire deal.

At our law firm, we regularly assist:

• Sellers whose closings are suddenly halted
• Buyers who discover liens during title searches
• Developers facing payment disputes
• Property owners dealing with contractor or subcontractor claims

We work to move transactions forward while protecting your legal and financial interests, whether that means bonding off the lien, negotiating a release, or challenging the lien head-on.

If a Construction Lien Is Threatening Your Deal, Get Guidance Before You Act

A construction lien does not have to derail your plans, but it does require careful, informed action. 

Whether you are facing a lien in Miami, Orlando, or anywhere in Florida, contact one of our experienced attorneys in Miami at 305-570-2208.

You can also contact our team directly at: arianna@ayalalawpa.com  

Schedule a case evaluation online here.

[The opinions in this blog are not intended to be legal advice. You should consult with an attorney about the particulars of your case].