MECHANIC’S LIEN

A MECHANIC’S LIEN can only be recorded against privately owned property. You cannot record a MECHANIC’S LIEN on property that is owned by a public entity or the federal government.

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MECHANIC’S LIEN

A MECHANIC’S LIEN can only be recorded against privately owned property. You cannot record a MECHANIC’S LIEN on property that is owned by a public entity or the federal government.

A MECHANIC’S LIEN is appropriate when you have supplied labor and or materials to a work of improvement and the labor and/or materials have actually been incorporated into the project and the labor and/or materials have enhanced the value of the property.

If you have a direct contract with the owner of the property you can record a MECHANIC’S LIEN anytime after your scope work has been completed and payment is due, or anytime after the contract has been breached, but no later than 90 days after the actual completion of the project. Actual completion is a question of fact, but a good rule of thumb is the date that the building department signs the entire project off as final. Punch list work does not act as an extension of time to record MECHANIC’S LIEN.

If you have a direct contract with the owner of the property and the owner timely records and serves you with a Notice of Completion you have 60 days instead of 90 days from the date the Notice of Completion is recorded to record your MECHANIC’S LIEN.

If you are a subcontractor or material supplier before you have the legal right to record a MECHANIC’S LIEN you must first do a Preliminary Notice (see Preliminary Notice for details). A subcontractor or material supplier can record a MECHANIC’S LIEN anytime after its scope of work has been completed and payment is due, or anytime after the contract has been breached, but no later than 90 days after the actual completion of the project. Actual completion is not the date that the subcontractor completes its scope of work or the date the last material has been supplied to the project. Actual completion is the date that the entire project is signed off and final.

If you are a subcontractor or a material supplier and the owner of the property timely records a Notice of Completion, and sends you a copy via certified mail, you have 30 days instead of 90 days from date the Notice of Completion is recorded to record your MECHANIC’S LIEN. If you did a Preliminary Notice and the owner records a Notice of Completion and fails to send you a copy via certified mail, the Notice of Completion is not valid and you have 90 days from actual completion to record your MECHANIC’S LIEN.

A Notice of Completion that is not recorded within 15 days of actual completion of a project is not valid and therefore does not affect the time in which you can record a MECHANIC’S LIEN.

If you have a direct contract with the owner of the project or you are a subcontractor or material supplier and the project stops in the middle of the construction for a period of 60 days, you have 150 days from the date the project was stopped to record your MECHANIC’S LIEN.

Once you record a MECHANIC’S LIEN you have 90 days from the date the MECHANIC’S LIEN was recorded to perfect the MECHANIC’S LIEN by filing a lawsuit. If you do not perfect your MECHANIC’S LIEN you need to release the MECHANIC’S LIEN, because although the MECHANIC’S LIEN is legally void, it is still a slander on the title of the property and actionable in law.

If you have questions about MECHANIC’S LIENS contact your attorney or contact attorney Beard Hobbs at 619-698-0977.