Many homeowners in Charlotte County who have built a home or had one repaired have faced the unpleasant reality that not all contractors are honest and trustworthy. Some homeowners have lost thousands of dollars due to contractors’ poor workmanship, negligence, or even fraud. A homeowner may then be faced with another harsh reality that when he or she receives a judgment against the contractor, there may be no assets from which to collect. Fortunately, the Florida Legislature has provided a possible vehicle for recovery to these homeowners under Chapter 489, Florida Statutes, entitled the “Florida Homeowner’s Construction Recovery Fund” (the “Recovery Fund”).
It was the intention of the Legislature in creating this Florida Statute that this fund provide relief to homeowners who received a judgment against a contractor, but could not collect on it due to a lack of assets on the part of the contractor. There are many conditions that need to be satisfied prior to filing an application with the Recovery Fund, but the main conditions are as follows:
The maximum amount a homeowner can receive from the Recovery Fund shall be $50,000. Claims against any one contractor cannot exceed, in the aggregate, $100,000 annually, and up to a total aggregate of $250,000. This means that if the contractor has wronged many homeowners, it is in the applicant’s best interest to get a judgment and apply as soon as possible, as the amount of funds is limited per contractor.
In those situations where a homeowner has a judgment and no other way to collect against the contractor, the Recovery Fund may be a viable option to satisfy some, if not all, the judgment. If you wish to learn more about the Florida Homeowner’s Construction Recovery Fund, it is advisable to consult an attorney to assist you in this process.
This newsletter is for general information and education purposes only.
It is not offered as legal advice or legal opinion.
To the extent this message contains tax advice, the U.S. Treasury Department requires us to inform you that any advice in this letter is not intended or written by our firm to be used, and cannot be used by any taxpayer, for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code. Advice from our firm relating to Federal tax matters may not be used in promoting, marketing or recommending any entity, investment plan or arrangement to any taxpayer.
You must be logged in to post a comment.