If you are a contractor, subcontractor or provider of construction materials, you deserve proper payment for your work and/or materials. However, dragging your foot for the allowance you are entitled to is not unusual for the owner of the land or the general contractor.
Although others may choose to be patient or resort to phone calls to reach out when waiting for payment, these methods may not be in the best interest.
A mechanics lien is an extremely powerful instrument we use to get you results, and they are more effective and popular than ever right now. Mechanic liens are estimated to be up by as much as 40% nationwide during the latest pandemic.
How the Mechanic’s liens Works
In order to get a mechanic’s lien filed, you must have a signed document concerning the services provided on and/or the supplies shipped to the property in question.
What you need for this is a formal offer and approval. There’s no need for a single document to be signed by both parties. A written contract shall be any written contract enforceable under the law.
In order to avoid granting a judge the power to determine what does or does not constitute a written contract, we propose a “notice of contract” to include the single contract written.
It is crucial if you have not entered into a contract with the owner that you have informed the owner of the presence of your lien. If the owner makes payment to the general contractor before they know the lien, you will not be able to reclaim it. After this and the account statement are registered with the correct deed reference, the next move is to file a suit. If the contract has been recorded, the owner of the property is unable to sell the real estate or carry out any more building work until you either collect your compensation in full, file a bond, or succeed in persuading the court to dissolve the mechanic’s lien.
What’s My Timetable for Mechanic Connection Filing?
If you may not comply with tight timelines, the mechanic’s lien may, in certain cases, become invalid as a matter of law and can be broken. You have 90 days from the date of delivery of the work or supplies to the property in question to document the lien (or from the date that anyone working with the general contractor rendered service and the contract report must be completed within 120 days of the completion of the job. You would then have an extra 90 days to file the suit, and then 30 days from the date of filing to record a certified copy of the lawsuit.
It is important NOT to make errors
The method of filing a mechanic’s lien requires a tight schedule and obedience to the correct procedures. There are, however, a few information that can derail the whole process if it is not addressed:
- Meet deadlines: the Commonwealth of Massachusetts has a very stringent and tight timeline in which you have to meet the deadlines for each move. Failure to reach such a deadline can result in your mechanic’s failure to comply.
- Keep records accurate: although you don’t need 100% accuracy, you have to be right. The notice of contract must direct the registry to the particular property on which you are putting the lien on.
- Proper notices: Prepare and record a notice of contract and a declaration of account—essential documents required for the creation of the mechanic’s lien.