Florida Contractor Practice Exam

What measure can an owner take to reduce the risk of a lien being filed against their property?

1. Require the contractor to submit an affidavit of payment

2. Stay active on site and speak with subcontractors

3. Have the contractor obtain a performance bond

4. Require the contractor to secure a payment bond

The correct answer is: Require the contractor to secure a payment bond

Requiring the contractor to secure a payment bond is a proactive strategy an owner can implement to mitigate the risk of a lien being filed against their property. A payment bond serves as a financial guarantee that subcontractors and suppliers will be paid for their work and materials. If the contractor fails to pay these parties, the payment bond provides the necessary funds to cover outstanding dues. This not only protects the contractor but also shields the property owner from claims or liens that could arise from unpaid subcontractors. While other options such as requiring an affidavit of payment, staying active on-site, and obtaining a performance bond may offer certain benefits, they do not specifically address the direct risk of liens being filed. A performance bond, for instance, ensures the project will be completed as per the contractual agreement but does not directly protect against unpaid debts that lead to liens. Similarly, while maintaining communication with subcontractors can help, it does not provide a formal financial safeguard against lien claims. Thus, securing a payment bond is the most effective measure for protecting an owner's property from liens.