The notice of commencement (NOC) is a short public document the owner records before work begins. It tells everyone who will work on the job who the owner is, who the contractor is, whether there is a payment bond, and where notices should be sent. In the Florida lien system it is the starting gun: it fixes the order of priority for liens and gives subcontractors and suppliers the information they need to serve a notice to owner.
The Business and Finance exam tends to test four things about the NOC: who signs and records it, when it becomes void, when it expires, and when a copy must be filed with the building department.
Who records it, and where
Under F.S. 713.13(1)(a), the owner (or the owner's authorized agent), before actually commencing to improve real property, or before recommencing after default or abandonment, must:
- record the notice of commencement in the clerk's office (the county clerk of court), and
- post at the job site either a certified copy of it or a notarized statement that it has been filed for recording, along with a copy.
The statute also says the owner must sign the notice and no one else may sign in the owner's place. The notice becomes effective when it is filed in the clerk's office.
Improvements exempt under F.S. 713.02(5) do not need an NOC. That subsection covers direct contracts with a total price of $2,500 or less.
What it contains
F.S. 713.13 sets out a statutory form. In plain terms, the NOC lists:
| Item | Why it matters |
|---|---|
| Legal description and street address of the property | Ties the notice to the land the liens attach to |
| General description of the improvement | Identifies the job |
| Owner's name, address and interest in the property | Where notices to owner go |
| Contractor's name and address | Identifies the party in privity |
| Surety and bond amount, if there is a payment bond | Tells lienors to look to the bond |
| Lender's name and address, if any | Lender also receives notices |
| Persons designated by the owner to receive notices | Additional notice addresses |
| Expiration date | See below |
The 90-day rule: when an NOC becomes void
F.S. 713.13(2): if the improvement described in the notice is not actually commenced within 90 days after recording, the notice is void and of no further effect. The owner would need to record a new one.
Example
An owner records an NOC on February 1. Permits are delayed and site work does not begin until June 10, about four months later. The NOC is void because work did not start within 90 days. A new NOC must be recorded before work starts.
Expiration: 1 year unless stated otherwise
The statutory form provides that the expiration date will be 1 year after the date of recording unless a different date is specified. Long projects commonly state a later date. If a job will run longer than a year and the NOC shows the default date, the owner should address that before it lapses.
| Rule | Number | Statute |
|---|---|---|
| Void if work does not begin | 90 days after recording | 713.13(2) |
| Default expiration | 1 year after recording | 713.13 statutory form |
| Exempt small contracts | $2,500 or less | 713.02(5) |
| Copy to building department before first inspection | Direct contract over $5,000 | 713.135(1) |
| HVAC repair or replacement exclusion | Under $15,000 | 713.135(1) |
The building department connection: F.S. 713.135
When a building permit is issued, F.S. 713.135(1) requires the permit applicant to file a copy of the notice of commencement with the issuing authority before the first inspection if the direct contract is greater than $5,000. "Copy" here means a certified copy of the recorded NOC, or a notarized statement that it has been filed for recording plus a copy.
That subsection does not apply to a direct contract to repair or replace an existing heating or air-conditioning system for less than $15,000. A homeowner replacing a central A/C unit for $11,800 does not trigger this filing requirement.
Keep the two dollar figures straight:
- $2,500: below this (or at it), the improvement is exempt from the NOC requirement entirely under 713.02(5).
- $5,000: above this, a copy must be filed with the building department before the first inspection under 713.135.
Why contractors care about the NOC
The NOC is the owner's document, but contractors deal with it daily:
- Subs and suppliers use it to get the owner's name and address and any bond information for their notice to owner.
- General contractors often prepare it for the owner's signature and must keep the job inspections moving, which can depend on the NOC copy being on file.
- Payments. The statutory form carries a warning that payments made by the owner after the NOC expires are considered improper and may result in paying twice. Keep an eye on the expiration date on long jobs.
A related document: the direct contract notice
Separate from the NOC, F.S. 713.015 requires a specific lien law disclosure in a direct contract between an owner and a contractor for improvements to a residential dwelling of up to four units when the contract is greater than $2,500. This notice warns the owner that unpaid subcontractors and suppliers can lien the property even if the contractor has been paid. The exam sometimes places this question next to NOC questions, so know which statute does what.
Common exam traps
- The NOC is signed by the owner, not the contractor.
- 90 days is the void rule (work never started); 1 year is the default expiration.
- The $5,000 permit filing threshold is in 713.135, not 713.13.
- The $15,000 HVAC exclusion applies only to repair or replacement of an existing system.
Practice the lien timeline
NOC rules are short and very testable. Our Florida Business and Finance Exam Prep includes original lien law questions with explanations and 90 days of practice across the full exam. Related guides: construction lien law overview, notice to owner and the B&F exam overview.
Practice questions
Unless a different date is stated in it, a notice of commencement expires:
- A90 days after recording
- B6 months after recording
- CWhen the certificate of occupancy is issued
- D1 year after recording
Show answer
Answer: D. The statutory notice of commencement form in F.S. 713.13 states the expiration date will be 1 year after the date of recording unless a different date is specified. The 90-day figure is when an NOC becomes void if work does not commence.
Source: F.S. 713.13(1)(d)
An owner records a notice of commencement, but work on the improvement does not actually begin for four months. What is the status of the notice?
- AIt is void because the improvement was not commenced within 90 days of recording
- BIt remains valid for one year from recording
- CIt is valid but must be re-posted at the site
- DIt automatically converts to a notice of termination
Show answer
Answer: A. F.S. 713.13(2) provides that if the improvement is not actually commenced within 90 days after recording, the notice is void and of no further effect. Four months exceeds 90 days, so a new notice is needed.
Source: F.S. 713.13(2)
A homeowner hires a licensed contractor to replace an existing central air-conditioning system for $11,800. Which statement about the notice of commencement filing requirement in F.S. 713.135(1) is correct?
- AIt applies because the contract exceeds $2,500
- BIt does not apply to repair or replacement of an existing HVAC system under $15,000
- CIt applies because the contract exceeds $5,000
- DIt applies only if the owner obtains financing
Show answer
Answer: B. F.S. 713.135(1) states that subsection does not apply to a direct contract to repair or replace an existing heating or air-conditioning system for less than $15,000. $11,800 is under that threshold.
Source: F.S. 713.135(1)
Under s. 713.015, F.S., the mandatory construction-lien-law notice must appear in a direct contract between an owner and a contractor for improvements to a residential dwelling of up to four units when the contract is:
- AGreater than $2,500
- BGreater than $5,000
- CGreater than $1,000
- DAny amount
Show answer
Answer: A. Section 713.015(1) applies to any direct contract greater than $2,500 for improvements to single- or multiple-family dwellings of up to four units. The notice must be in at least 12-point, capitalized, boldfaced type on the front page or on a separate page, signed and dated by the owner.
Source: F.S. 713.015(1)
These are from our bank of 466 original questions. Get the full Florida Business & Finance prep.