Tuesday, March 11, 2008
Florida's Transfer Bond Statute Isn't Working
In a nutshell, Florida's Transfer Bond Statute is not working. Florida Statute §713.24, permits an owner whose property is encumbered by a claim of lien to transfer that lien off the property to other security, such as a cash deposit or surety bond. However, problems with Florida’s transfer bond statute have emerged. Meaning, lienors who have provided labor or materials are finding themselves unprotected and exposed. This article explains the purpose of Florida Statute 713.24, the advantages and disadvantages of this statute, the problems and complications that arise when the statute is applied to real/everday actual situations, and the various possible amendments to the current statutory framework that should improve the statute and further its purpose of protecting the lienors, while still benefiting owners.