Project Description

What is a Mechanics Lien?

A mechanics lien is a legitimate demand for unfinished construction jobs. When a contractor files a lien, they obtain a security interest in the property or estate. A lien clouds the title of the property, making it impossible for the owner or of the property to sell the property until the claim is paid.

Usually, someone who supplies labour or property improvement materials will file a mechanics lien if they are not compensated. Since a bond disrupts the transfer of money to a project, several people, such as developers, land owners, and general contractors, are involved in ensuring that the appropriate party is compensated.

Thomas Jefferson enacted the first legislation on mechanics lien to the safety of builders and other merchants, known in those days as “mechanics.” Each US state now has lien regulations to ensure that builders, manufacturers, and others are compensated.

How liens work

It’s best to think that a mechanics lien is a method rather than a stand-alone file. Before you can file a mechanics, you must take initial actions to secure your right to file a lawsuit. Generally, state regulation allows you to submit particular records at specific intervals during the building process in order to maintain your lien rights.

While each state has its own rules, there are four fundamental steps in the process:

  • File a preliminary notice – Preliminary notice is a letter submitted at the beginning of a building project that informs the GC, the owner of the land, and/or the lender that you are on the job.
  • Send a notice of intent – A Notice of Intent to file a lien (NOI) is a paper that notifies the GC, the owner of the property and others that a lien may be filed if they do not make payment.
  • File a mechanics lien – Filing a lien includes filling out a form with correct details of the estate, the work done, the sum due, etc.
  • Enforcing the lien – After filing a lien, the claimant would need to take additional action. If the lien is met, it is always necessary to release or cancel the lien in order to prevent fines.
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Helping you get paid

Our team of lawyers can help ensure that you meet with statutory deadlines and that the requirements can be complex and time-consuming. We provide flat rates for filing liens. Our lawyers are also specialized with the different solutions available to the construction professions to remove invalid and unenforceable liens.

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