Lien on Me? Not So Fast: Unit Owners Defeat Association Contractor’s Lien

Earlier this month, Florida’s Second District Court of Appeal recognized the rights of individual condominium unit owners to challenge mechanic’s liens and stripped the lien of a contractor who failed to follow the strict procedural requirements governing lien enforcement.

Background

The Steins own a condominium unit in the Privateer North Condominium Association, Inc. on Longboat Key, Florida. Their condominium association contracted with a restoration contractor, Reynolds Ventures, to perform work on the common elements. Following a payment dispute with the association, Reynolds Ventures recorded a lien against all units in the condominium. Under § 718.121 of Florida’s Condominium Act, the units, not the common elements, serve as collateral for payment to an association’s contractor.

The Steins, pro se, filed suit to discharge the lien against their unit under § 713.21 of the Construction Lien Law. This required Reynolds Ventures to either file a lien foreclosure or show cause why the lien should not be canceled within 20 days. 

Reynolds Ventures did not foreclose. Claiming its desire to avoid disrupting ongoing negotiations with the association constituted good cause, it sought additional time to foreclose as it attempted to resolve the payment dispute. Finding that Reynolds Ventures established good cause “based upon the existence of a contract, services performed thereto and the lack of payment therefor,” the trial court refused to discharge the lien. The appellate court reversed and ordered the lien discharged. In so holding, the Second DCA made two key findings:

Key Holdings

Unit Owner Standing

The Second DCA expressly found that the Steins, as unit owners, had standing to challenge the contractor’s lien, even though their association contracted with Reynolds Ventures. Under section 718.121(2), when an association authorizes work on common elements, the contractor’s lien is against all units in proportion to each unit’s share of common expenses. Section 718.121(3) confirms that each unit owner may exercise the rights of a property owner under Chapter 713 and may remove the lien against their unit by paying the proportionate amount of the lien attributable to their unit. Extending that principal, the Second DCA found that the Steins had standing to seek discharge of the lien on their individual unit.

The “Show Cause” Requirement

The Second DCA also emphasized that proceedings under section 713.21 are “special statutory proceedings” requiring strict compliance including rigid adherence to time limits.

Reynolds Ventures argued that good cause existed because litigation would undermine its ongoing negotiations with the association. Alternatively, Reynolds Ventures requested an extension of time to commence foreclosure proceedings. Recognizing that the “showing of good cause is not easily met,” the Second DCA rejected the argument that ongoing negotiations with the Association constituted good cause. Finding no legal basis for the court to extend the time to file a foreclosure action, the Second DCA ordered the lien canceled.

Practical Implications

For Contractors:

• When working for a condominium association, the contractor’s lien is against the condominium units, not the association’s common elements. The unit owners have the ability to release the lien against their unit by paying their proportionate share of the total bill. They can also challenge the lien’s validity. When the owner of property subject to a lien invokes § 713.21, the only surefire way to prevent the lien from being discharged is to file a foreclosure action within 20 days.

• When a show cause action is filed, the Final Contractor’s Affidavit must still be served, but the five-day advance service requirement may not apply. This nuance can be critical given the tight 20-day statutory window.

For Condominium Unit Owners:

• Unit owners have standing to challenge liens under Chapter 713 even when the contractor’s agreement was solely with the association. Potential avenues include:

  • Notice of Contest: Serving a notice of contest of lien shortens the contractor’s deadline to commence foreclosure to 60 days, forcing reasonably prompt action or resulting in loss of lien rights, at a significantly lower cost than a show cause proceeding.

  • Transfer to Bond: Unit owners can discharge the lien by posting a bond for their pro rata share of the lien, clearing the title while preserving the unit owner’s ability to contest the amount owed the contractor.

  • Show Cause Proceedings: If the contractor fails to strictly comply with the statutory requirements by foreclosing or showing good cause why it should not be required to do so, the court may be required to discharge the lien.

Conclusion

Florida’s Construction Lien Law demands strict compliance. Contractors must be prepared to act swiftly when a show cause summons is issued; reliance on ongoing negotiations does not preserve lien rights. Unit owners have meaningful tools to protect their property interests against liens of the association’s contractors. All parties are encouraged to consult qualified legal counsel when navigating these procedural requirements.

Reference

Stein v. Reynolds Ventures, Inc., No. 2D2025-2795 (Fla. 2d DCA Aug. 7, 2026)

Dislclaimer

This article is for informational purposes only and does not constitute legal advice. The information provided should not be relied upon as a substitute for consultation with qualified legal counsel regarding your specific situation. No attorney-client relationship is created by reading this article.