The other day, I consulted with a contractor that recorded a construction lien. Its lien had been transferred to a lien transfer bond pursuant to Florida Statute s. 713.24. With the lien transfer bond, instead of foreclosing the lien against the real property, you are foreclosing it against the bond. This is not a bad deal. In this case, however, the contractor failed to file a lawsuit within one year, meaning its rights to foreclose against the lien transfer bond expired. There was nothing I could do relative to its lien or the fact that it had been transferred to a lien transfer bond. Remember, just because your lien was transferred to a lien transfer bond does not mean you get more time to file your foreclosure lawsuit. A lawsuit must still be filed within one year (short of that period being specifically shortened under operation of the law). The only exception is that if the lawsuit is filed and the lien transfer bond is then posted (post-lawsuit), the lienor has one year to amend to sue the lien transfer bond.
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