{"id":901530,"date":"2023-08-21T15:05:59","date_gmt":"2023-08-21T21:05:59","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=901530"},"modified":"2023-08-21T15:06:02","modified_gmt":"2023-08-21T21:06:02","slug":"pith-perfect-for-lienors-not-landlords","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/pith-perfect-for-lienors-not-landlords\/","title":{"rendered":"Pith? Perfect for Lienors, Not So Much for Landlords: Protecting Rights When Improvements Are Made to Commercial Tenancies"},"content":{"rendered":"\n<p>Jennifer P. Sommerville and Todd F. Kobrin | <a href=\"https:\/\/www.shutts.com\/flconstruction\/pith-perfect-for-lienors-not-so-much-for-landlords-protecting-rights-when-improvements-are-made-to-commercial-tenancies\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Shutts<\/a><\/p>\n\n\n\n<p>Have you ever heard the strange term \u201cpith of the lease\u201d?&nbsp; This odd designation, apparently unique to Florida law, describes improvements to commercial tenancies that are essential or \u201cvital to the lease\u2019s perpetuality.\u201d<a href=\"https:\/\/www.shutts.com\/#_ftn1\">[1]<\/a>&nbsp;<\/p>\n\n\n\n<p>Generally, a construction lien extends only to the \u201cright, title and interest of the person who contracts for the improvement . . .\u201d<a href=\"https:\/\/www.shutts.com\/#_ftn2\">[2]<\/a>&nbsp; However, absent action by the landlord, such a lien will extend to the landlord\u2019s fee interest in the property if: (a) the lease required the work to be done; or (b) the lease by its terms made it obvious that the improvements were the \u201cpith of the lease.\u201d<a href=\"https:\/\/www.shutts.com\/#_ftn3\">[3]<\/a>&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>The Relevant Statute<\/strong><\/h4>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 713.10, Florida Statutes, titled \u201cExtent of liens,\u201d provides a mechanism for landlords to protect their property from being liened when a tenant contracts for improvements to the leased premises.&nbsp; The statute also provides a path for lienors to protect themselves when performing work on behalf of a tenant.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>How Can a Landlord Protect Itself&nbsp;<\/strong><strong>From Liens When Work is Performed for its Tenant?<\/strong><\/h4>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Even if tenant improvements are required by the lease or constitute the pith of the lease, a landlord can still protect itself by taking the following steps:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Including lien prohibition language in the subject lease and recording the lease or a short form or memorandum of the lease containing the specific lien prohibition language in the official records book before the recording of a notice of commencement for the improvements\u201d<a href=\"https:\/\/www.shutts.com\/#_ftn4\">[4]<\/a>&nbsp;OR<\/li>\n\n\n\n<li>Including lien prohibition language in the subject lease&nbsp;and&nbsp;recording a notice in the public records prior to recordation of a notice of commencement for improvements on the property that leases for the rental of premises on a specified parcel of land prohibit the fee interest from being subject to lien for tenant improvements. A notice recorded must contain: (a) the name of the landlord; (b) the legal description of the parcel of land to which the notice applies; (c) the specific language contained in the various leases prohibiting liens for tenant improvements; and (d) a statement that all or a majority of the leases entered into for premises on the parcel of land expressly prohibit such liability.<a href=\"https:\/\/www.shutts.com\/#_ftn5\">[5]<\/a><\/li>\n<\/ol>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The important thing to remember is that the lease itself must contain lien prohibition language&nbsp;<strong><u>and<\/u><\/strong>&nbsp;there must be something recorded in the public records (either the lease\/memorandum of lease or a notice of lien prohibition) indicating that the fee interest of the property will not be subject to liens for work performed for the benefit of the tenant.&nbsp; Landlords usually go with the second option to avoid having to record a lease in the public records.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>How Can a Lienor Protect Itself&nbsp;<\/strong><strong>When Performing Work for a Tenant?<\/strong><\/h4>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lienors performing work for tenants can protect themselves by serving a demand on the landlord for a verified copy of the provision of the lease prohibiting liability for improvements made by the tenant.&nbsp; The demand must identify the tenant and the premises being improved, and must be in a document separate from the notice to owner required by \u00a7713.06, Fla. Stat.<a href=\"https:\/\/www.shutts.com\/#_ftn6\">[6]<\/a><\/p>\n\n\n\n<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the landlord fails to provide a copy of the lease provision verified under \u00a792.525, Fla. Stat. within 30 days after the demand, or if the landlord serves a false or fraudulent copy of the lease provision, the landlord\u2019s fee interest is subject to the lien for tenant improvements so long as the lienor did not have actual notice that landlord\u2019s interest was not subject to a lien for improvements made by the tenant.<a href=\"https:\/\/www.shutts.com\/#_ftn7\">[7]<\/a><\/p>\n\n\n\n<p>A final point to note is that when a lease expressly provides that the interest of the landlord will not be subject to liens for improvements made by the tenant, the tenant has a statutory duty to notify the contractor making any such improvements of this provision.<a href=\"https:\/\/www.shutts.com\/#_ftn8\">[8]<\/a>&nbsp; The failure of a tenant to provide this notice renders the contract between the tenant and contractor voidable at the option of the contractor.<a href=\"https:\/\/www.shutts.com\/#_ftn9\">[9]<\/a><\/p>\n\n\n\n<p>No matter if you or your clients are commercial landlords or lienors, keeping this information in mind will protect your or their rights and help avoid situations that would be \u201caca-awkward.\u201d<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><a href=\"https:\/\/www.shutts.com\/#_ftnref1\">[1]<\/a>&nbsp;<em>14th &amp; Heinberg, L.L.C. v. Henricksen &amp; Co., Inc.<\/em>, 877 So. 2d 34 (Fla. 1st DCA 2004).<\/p>\n\n\n\n<p><a href=\"https:\/\/www.shutts.com\/#_ftnref2\">[2]<\/a>&nbsp;\u00a7713.10(1), Fla. Stat.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.shutts.com\/#_ftnref3\">[3]<\/a>&nbsp;<em>14th &amp; Heinberg<\/em>, 877 So. 2d at 39.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.shutts.com\/#_ftnref4\">[4]<\/a>&nbsp;\u00a7713.10(2)(b)(1), Fla. Stat.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.shutts.com\/#_ftnref5\">[5]<\/a>&nbsp;\u00a7713.10(2)(b)(2), Fla. Stat.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.shutts.com\/#_ftnref6\">[6]<\/a>&nbsp;\u00a7713.10(3), Fla. Stat.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.shutts.com\/#_ftnref7\">[7]<\/a>&nbsp;\u00a7713.10(3), Fla. Stat.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.shutts.com\/#_ftnref8\">[8]<\/a>&nbsp;\u00a7713.10(2)(a), Fla. Stat.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.shutts.com\/#_ftnref9\">[9]<\/a>\u00a0\u00a7713.10(2)(a), Fla. Stat.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\" target=\"_blank\" rel=\"noreferrer noopener\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jennifer P. Sommerville and Todd F. Kobrin | Shutts Have you ever heard the strange term \u201cpith of the lease\u201d?&nbsp; This odd designation, apparently unique to Florida law, describes improvements to commercial tenancies that are essential or \u201cvital to the lease\u2019s perpetuality.\u201d[1]&nbsp; Generally, a construction lien extends only to the \u201cright, title and interest of&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/pith-perfect-for-lienors-not-landlords\/\">Continue reading <span class=\"screen-reader-text\">Pith? Perfect for Lienors, Not So Much for Landlords: Protecting Rights When Improvements Are Made to Commercial Tenancies<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[10772],"tags":[9895,94,10568,11942],"class_list":["post-901530","post","type-post","status-publish","format-standard","hentry","category-mechanics-lien-law","tag-advise-consult","tag-florida","tag-lien-rights","tag-pith-of-the-lease","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Pith? 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