Florida Statutes
Fla. Stat. § 713.345 (2025)
Moneys received for real property improvements; penalty for misapplication.
✓ 2025 Florida Statutes — current through the 2025 Regular Session
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713.345 Moneys received for real property improvements; penalty for misapplication.—
(1)(a) A person, firm, or corporation, or an agent, officer, or employee thereof, who receives any payment on account of improving real property must apply such portion of any payment to the payment of all amounts then due and owing for services and labor which were performed on, or materials which were furnished for, such improvement prior to receipt of the payment. This paragraph does not prevent any person from withholding any payment, or any part of a payment, in accordance with the terms of a contract for services, labor, or materials, or pursuant to a bona fide dispute regarding the amount due, if any, for such services, labor, or materials.
(b) Any person who knowingly and intentionally fails to comply with paragraph (a) is guilty of misapplication of construction funds, punishable as follows:
1. If the amount of payments misapplied has an aggregate value of $100,000 or more, the violator is guilty of a felony of the first degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
(c) A permissive inference that a person knowingly and intentionally misapplied construction funds in violation of this subsection is created when a valid lien has been recorded against the property of an owner for labor, services, or materials; the person who ordered the labor, services, or materials has received sufficient funds to pay for such labor, services, or materials; and the person has failed, for a period of at least 45 days from receipt of the funds, to remit sufficient funds to pay for such labor, services, or materials, except for funds withheld pursuant to paragraph (a).
(d) A state attorney or the statewide prosecutor, upon the filing of an indictment or information against a contractor, subcontractor, or sub-subcontractor which charges such person with a violation of paragraph (b), shall forward a copy of the indictment or information to the Department of Business and Professional Regulation. The Department of Business and Professional Regulation shall promptly open an investigation into the matter and, if probable cause is found, shall furnish a copy of any investigative report to the state attorney or statewide prosecutor who furnished a copy of the indictment or information and to the owner of the property which is the subject of the investigation.
(e) If a contractor, subcontractor, sub-subcontractor, or other person who is licensed under chapter 489 is convicted of misapplication of construction funds under this section, the licensee is subject to discipline under s. 489.129(1)(r).
(2) This section does not apply to mortgage bankers or their agents, servants, or employees for their acts in the usual course of the business of lending or disbursing mortgage funds.
History.—s. 1, ch. 87-74; s. 7, ch. 88-397; s. 17, ch. 90-109; s. 7, ch. 2003-177; s. 12, ch. 2005-227; s. 5, ch. 2021-124.
Arrestable Offenses under F.S. 713.345
M = misdemeanor · F = felony · degree: F=1st S=2nd T=3rd§713.345FRAUDNOT A SEPARATE OFFENSE
§713.345(1b1)EMBEZZLEMISAPPROPRIATE CONSTRUCTION FUNDS 0K+
§713.345(1b2)EMBEZZLEMISAPPROPRIATE CONSTRUCTION FUNDS
Notes of Decisions
Cited in 10
cases, 1993–2014 · leading case: Netherly v. State, 804 So. 2d 433 (Fla. 2d DCA 2001).
Netherly v. State, 804 So. 2d 433 (Fla. 2d DCA 2001). “[4] *438 Section 713.345, Florida Statutes (1991) (Monies received for real property improvement), provides, in part: Any person, .”
Goldman v. State, 645 So. 2d 1089 (Fla. 4th DCA 1994). “Lucie and State of Florida did after receiving payments in the amount greater than ,000 on account of improving real property of Ron Derby, fail to apply such portion of the payment to the payment then due and owing for services, labor, and material which had been furnished…”
CDC Builders, Inc. v. Riviera Almeria, LLC, 51 So. 3d 510 (Fla. 3d DCA 2010). “Therefore, while a violation of either section 713.345 or section 713.35 would expose an individual to criminal sanctions, we cannot agree with the trial court that either statute — or chapter 713 interpreted as a whole — would justify the discharge or invalidation of an…”
Wilson v. Gropp (In Re Gropp), 153 B.R. 350 (Bankr. M.D. Fla. 1993). “Plaintiffs claim that by virtue of Fla. Stat. § 713.345 (l)(a), a fiduciary relationship exists between the homeowner and a building contractor.”
Seabridge v. Superior Kitchens, 672 So. 2d 848 (Fla. 4th DCA 1996). “If we thought that a violation of section 713.345 was included within the remedial provisions of the civil theft statute, section 772.”
Off. Comm. of Unsecured Creditors of Cox & Schepp, Inc. v. Palmer Elec. Co. (In re Cox & Schepp, Inc.), 523 B.R. 511 (Bankr. W.D.N.C. 2014). “Because Florida lien law makes misapplication of construction funds a felony offense, Fla. Stat. § 713.345 , Palmer argues that Cox & Schepp merely held Palmer’s funds in trust.”
Vereen v. State, 703 So. 2d 1193 (Fla. 4th DCA 1997). “Appellant entered a plea of no contest to the charge of misappropriating construction funds, in violation of section 713.345, Florida Statutes (1993).”
Weber v. State, 649 So. 2d 253 (Fla. 2d DCA 1994). “Weber appeals his judgment and sentence for misapplication of construction funds in violation of section 713.345, Florida Statutes (Supp.1990).”
Matherly v. State, 704 So. 2d 563 (Fla. 1st DCA 1997). “Following his conviction for the third-degree felony of misapplication of construction *564 funds in violation of section 713.345(l)(b)3, Florida Statutes (1993), appellant seeks review, raising a number of issues.”
P.A.V.C.O. Constr., Inc. v. Am. Framing Specialists, Inc., 722 So. 2d 932 (Fla. 5th DCA 1998). “The statutes relied upon to award the fees, section 713.345 and section 713.29, Florida Statutes (1995), are not applicable to this action.”
— 713.345(1)(a) — 2 cases
Netherly v. State, 804 So. 2d 433 (Fla. 2d DCA 2001). “[4] *438 Section 713.345, Florida Statutes (1991) (Monies received for real property improvement), provides, in part: Any person, .”
Seabridge v. Superior Kitchens, 672 So. 2d 848 (Fla. 4th DCA 1996). “If we thought that a violation of section 713.345 was included within the remedial provisions of the civil theft statute, section 772.”
— 713.345(1)(b) — 2 cases
Netherly v. State, 804 So. 2d 433 (Fla. 2d DCA 2001). “[4] *438 Section 713.345, Florida Statutes (1991) (Monies received for real property improvement), provides, in part: Any person, .”
Seabridge v. Superior Kitchens, 672 So. 2d 848 (Fla. 4th DCA 1996). “If we thought that a violation of section 713.345 was included within the remedial provisions of the civil theft statute, section 772.”
— 713.345(l)(a) — 2 cases
Wilson v. Gropp (In Re Gropp), 153 B.R. 350 (Bankr. M.D. Fla. 1993). “Plaintiffs claim that by virtue of Fla. Stat. § 713.345 (l)(a), a fiduciary relationship exists between the homeowner and a building contractor.”
CDC Builders, Inc. v. Riviera Almeria, LLC, 51 So. 3d 510 (Fla. 3d DCA 2010). “Therefore, while a violation of either section 713.345 or section 713.35 would expose an individual to criminal sanctions, we cannot agree with the trial court that either statute — or chapter 713 interpreted as a whole — would justify the discharge or invalidation of an…”
— 713.345(l)(b) — 1 case
Matherly v. State, 704 So. 2d 563 (Fla. 1st DCA 1997). “Following his conviction for the third-degree felony of misapplication of construction *564 funds in violation of section 713.345(l)(b)3, Florida Statutes (1993), appellant seeks review, raising a number of issues.”
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