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<P class=87179e4c-9a4d-4fc8-bb93-e5765257a3df><div class=WordSection1><p class=MsoNormal>Couple questions on subdivision improvement and proper payments. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>As we all know, non-privity subdivision lienors are not required to serve a NTO as a condition precedent to their right to record a valid lien. The 2<sup>nd</sup> and 4<sup>th</sup> DCA were split on whether the proper payments procedures of 713.06 applied to this work. 713.04 was subsequently amended and it is my understanding that this work is now subject to the proper payment provisions. A non-privity subdivision lienor may choose to serve a NTO and, upon such service, the Owner has an affirmative to duty (under 713.06(3)(c)) to cause said subcontractor giving notice to be paid. Those are the easy ones. However, the non-privity subdivision lienor is not required to serve the NTO. Presumably, if proper payments are otherwise made, and final payment is made in reliance upon a CFA that does not disclose said lienor, that non-privity subdivision lienor, that has not served a NTO, but which lienor is still within its 90 days to record a lien, is barred if the owner makes final payment in accordance with the CFA prior to the lienor recording its lien.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>First, in this scenario, is this non-privity lienor’s lien barred by the owner’s proper payments? This is clearly true if we are talking NTO’s at the end of a job but a NTO is not required in this situation. Still if the Owner makes proper payments, it cannot be required to pay more than the contract balance and it can rely on the final CFA unless lienors giving notice are not listed on the affidavit.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Second, does anyone have any recommendations for complying with the proper payment procedures when constructing horizontals. This owner does not have a super on site to monitor and prepare a list of the active subs. I can only think of getting a list of the subs (at least the major ones) in advance pursuant to a contractual requirement and checking down the sub list with each payment app. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Thanks in advance. <a href="mailto:Tsmith@rtlaw.com">Tsmith@rtlaw.com</a> <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal style=mso-margin-top-alt:auto><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#7F7F7F'>Troy</span></b><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'> </span><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#7F7F7F'>Smith</span></b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#7F7F7F'> | Shareholder</span><span style='font-size:7.5pt;font-family:"Arial","sans-serif";color:#7F7F7F'> </span><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#7D7D7D'>Board Certified Construction Lawyer<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:7.5pt;font-family:"Arial","sans-serif";color:#7F7F7F'><img border=0 width=249 height=65 id="_x0000_i1025" src='cid:image001.png@01CF3D52.B79F3270' /></span><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#7F7F7F'>Rogers Towers, P.A. | 818 A1A N., Suite 208 | Ponte Vedra Beach, Florida 32082</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#7F7F7F'>Direct 904.346.5770 | Fax 904.473.1399 | <a href="mailto:TSmith@rtlaw.com" title="Click to send email to Troy Smith"><span style=color:#7F7F7F>TSmith@rtlaw.com</span></a> | <a href="http://www.RTlaw.com" title=""><span style=color:#7F7F7F>www.rtlaw.com</span></a></span><o:p></o:p></p></div></P>
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