I'm asked occasionally to advise a straightforward 2-page building covenant for states like Florida.
Where can I get a covenant like that?
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If you see one of these two-page wonders, you can be sure it's junk - at least in the State of Florida. The legislators in Tallahassee have seen to that. Every valid Florida building covenant will consist of any pages of notices and disclosures required by Florida law.
If you've been using a two-page covenant for residential building in Florida, here's a handy guide to what you're missing.
Opportunity to heal (Florida Statures lesson 558.005)
Every building covenant in Florida (except social communication projects) must consist of the "notice of claim" statement. The covenant is still valid if you omit this statement. But the fine for leaving it out is 0 under Florida Statutes - 775.08(3).
Buyer's Right to Cancel (Florida Statutes - 501.031)
Unless the deal was concluded at a state fair, at your office or after an express invitation to visit your client at home, residential contracts have to give consideration of the buyer's right to cancel.
If the deal was closed, for example, over lunch in a restaurant, on the phone, by email, on a golf course or at an architect's office, it's a home solicitation sale. I know that doesn't make much sense. But it's Florida law. The consideration is required. Omission of the consideration is a first degree misdemeanor punishable by up to a year in prison and a ,000 fine under Florida Statutes - 775.082 and - 775.083.
Florida building Lien consideration (Florida Statutes - 713.015)
This consideration has to appear in all residential prime contracts valued at ,500 or more if work is whether new building or revision of a building with four units or less. The consideration has to be in 12-point bold caps and whether on the front page of the covenant or on a cut off page. If the consideration is on a cut off page, this statement has to be signed by the owner and dated. Omitting this consideration is a non-criminal violation punishable by a fine of up to 0 under Florida Statutes - 775.08(3) and may make it difficult for a prime contractor to impose lien rights.
Construction commerce salvage Fund consideration (Florida Statutes - 489.1425)
Omission of this consideration is punishable by a fine of up to 0 for the first offense and up to ,000 for a second or subsequent offense.
The Home revision Sales and Finance Act. (Florida Statutes - 520.73)
If a home revision covenant includes a finance charge, Florida law requires a statement in 10-point bold type directly above the owner's signature. Omission of this consideration requires a reputation of all delinquency fees charged, plus attorney fees and costs.
If your Florida contracts fudge on these notices, you have an excuse. Some of these required notices are new. The right to heal consideration became productive October 1, 2006. The lien consideration law became productive in the present form on July 1, 2007.
This checklist covers only notices required by Florida law. Of course, all Florida contracts have to comply with Federal law - the 3-day right to cancel (12 C.F.R. 226.15 ), Federal Truth in Lending (15 U.S.C. 1601) and insulation disclosures (16 C.F.R. 460). If you do home revision work in zips in the middle of 33010 and 34141, Miami-Dade Municipal Code - 10-33 requires additional disclosures.
Even if you're not implicated about the threat of fines and jail time, there are good reasons to keep your contracts legal under Florida law. Get into a dispute on any job and the attorney for the other side will hammer away at every wee flaw and fault in your contract. You could be left with no way to collect.
So while a two-page building covenant may be easy to get the owner to sign, it may not be wholly legal under Florida law. It surely offers wee or no safety should something go wrong. Unfortunately, most forms ready on the Internet today do not cover the provisions required by Florida covenant law.
advice Florida construction Contracts Need More Than Two Pages to Be Legal
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