Florida Statute 713.345 - Full Text and Legal Analysis

The 2025 Florida Statutes

Title XL
REAL AND PERSONAL PROPERTY

Chapter 713
LIENS, GENERALLY

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F.S. 713.345

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.

2. If the amount of payments misapplied has an aggregate value of $1,000 or more but less than $100,000, the violator is guilty of a felony of the second degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

3. If the amount of payments misapplied has an aggregate value of less than $1,000, the violator is guilty of a felony of the third 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.

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Amendments to 713.345

Annotations, Discussions, Cases:

Arrestable Offenses / Crimes under Fla. Stat. 713.345

Level: Degree
Misdemeanor/Felony: First/Second/Third

S713.345 - FRAUD - NOT A SEPARATE OFFENSE - M: F

S713.345 1b1 - EMBEZZLE - MISAPPROP CONSTRUCTION FUNDS 100K DOLS OR MORE - F: F

S713.345 1b2 - EMBEZZLE - MISAPPROP CONSTR FUNDS 1K DOLS LESS 100K DOLS - F: S

S713.345 1b3 - EMBEZZLE - MISAPPROP CONSTRUCTION FUNDS UNDER 1K DOLS - F: T

Cases Citing Statute 713.345

Total Results: 9

Netherly v. State

804 So. 2d 433, 2001 WL 1246514

District Court of Appeal of Florida | Filed: Oct 19, 2001 | Docket: 1699371

Cited 6 times | Published

over defense counsel's objection.[4] *438 Section 713.345, Florida Statutes (1991) (Monies received for

CDC Builders, Inc. v. Riviera Almeria, LLC

51 So. 3d 510, 2010 Fla. App. LEXIS 18624, 2010 WL 4977227

District Court of Appeal of Florida | Filed: Dec 8, 2010 | Docket: 60297642

Cited 2 times | Published

agreements whereby one party can withhold payment. Section 713.345(l)(a) states in pertinent part: “[t]his paragraph

Wilson v. Gropp (In Re Gropp)

153 B.R. 350, 7 Fla. L. Weekly Fed. B 93, 1993 Bankr. LEXIS 661, 24 Bankr. Ct. Dec. (CRR) 287, 1993 WL 136565

United States Bankruptcy Court, M.D. Florida | Filed: Apr 7, 1993 | Docket: 1446421

Cited 2 times | Published

Plaintiffs claim that by virtue of Fla. Stat. § 713.345(1)(a), a fiduciary relationship exists between

Seabridge v. Superior Kitchens

672 So. 2d 848, 1996 WL 106377

District Court of Appeal of Florida | Filed: May 13, 1996 | Docket: 2527868

Cited 1 times | Published

812.014. If we thought that a violation of section 713.345 was included within the remedial provisions

P.A.V.C.O. Construction, Inc. v. American Framing Specialists, Inc.

722 So. 2d 932, 1998 Fla. App. LEXIS 15941, 1998 WL 881319

District Court of Appeal of Florida | Filed: Dec 18, 1998 | Docket: 64785001

Published

The statutes relied upon to award the fees, section 713.345 and section 713.29, Florida Statutes (1995)

Vereen v. State

703 So. 2d 1193, 1997 Fla. App. LEXIS 14360, 1998 WL 25615

District Court of Appeal of Florida | Filed: Dec 24, 1997 | Docket: 64777935

Published

misappropriating construction funds, in violation of section 713.345, Florida Statutes (1993). The trial court placed

Matherly v. State

704 So. 2d 563, 1997 Fla. App. LEXIS 6566, 1997 WL 329123

District Court of Appeal of Florida | Filed: Jun 17, 1997 | Docket: 64778332

Published

of construction *564funds in violation of section 713.345(l)(b)3, Florida Statutes (1993), appellant

Weber v. State

649 So. 2d 253, 1994 Fla. App. LEXIS 12556, 1994 WL 714380

District Court of Appeal of Florida | Filed: Dec 28, 1994 | Docket: 64753772

Published

misapplication of construction funds in violation of section 713.345, Florida Statutes (Supp.1990). We reverse because

Goldman v. State

645 So. 2d 1089, 1994 Fla. App. LEXIS 11515, 1994 WL 665705

District Court of Appeal of Florida | Filed: Nov 30, 1994 | Docket: 64752362

Published

prior to receiving the payment, in violation of § 713.345;” Count III: “on or about May 8, 1990 in the county