Lien Law Tips

Protecting Your Payment Rights

Mechanic's liens and preliminary notices are powerful tools that help contractors, subcontractors, laborers, and material suppliers secure payment for their work on construction projects. Understanding lien laws in your state is critical to protecting your business and ensuring you get paid.

What is a Mechanic's Lien?

A mechanic's lien is a legal claim against a property for unpaid work or materials provided during construction or improvement of that property. It encumbers the property title, making it difficult for the property owner to sell or refinance until the lien is satisfied. This creates a strong incentive for property owners and general contractors to pay their subcontractors and suppliers.

Key Concepts in Lien Law

1. Preliminary Notice

Many states require preliminary notices to be filed within a specific timeframe after first furnishing labor or materials to a project. A preliminary notice identifies who furnished labor or materials and alerts the property owner and general contractor that the claimant may have lien rights. Failure to file a timely preliminary notice may result in the loss of lien rights in many states.

2. Notice of Intent to Lien

Some states require a Notice of Intent to Lien before a mechanic's lien can be filed. This notice gives the property owner and general contractor a final opportunity to pay the claimant before a lien is recorded against the property.

3. Filing Deadlines

Each state has specific deadlines for filing mechanic's liens. These deadlines typically range from 30 to 120 days after the last date of work or delivery of materials. Missing the deadline will generally result in the permanent loss of lien rights.

4. Priority of Liens

The priority of a mechanic's lien varies by state. In some states, the lien relates back to the date when work first commenced or materials were first delivered. In other states, priority is determined by the date the lien is recorded.

5. Enforcement

A mechanic's lien must be enforced by filing a lawsuit within a specified period after the lien is recorded. This period varies by state but is typically between 6 months and 2 years. If enforcement action is not taken within the deadline, the lien expires and the claimant loses their rights.

Tips for Protecting Your Rights

• Know the lien laws in every state where you work.
• File preliminary notices promptly and keep copies of all filings.
• Maintain detailed records of all labor, services, and materials furnished.
• Document the dates of first and last furnishing on every project.
• Keep copies of all contracts, invoices, and proof of delivery.
• Act quickly when payment is overdue — time limits are critical in lien law.
• Consult with a construction attorney for complex situations.

How Express Notices Can Help

Express Notices has been helping contractors and suppliers protect their payment rights for over 25 years. We prepare and file preliminary notices, mechanic's liens, and bond claims in all 50 states. Our experienced staff understands the specific requirements of each state and ensures your documents are filed properly and on time.

This information is provided for educational purposes only and does not constitute legal advice. Consult with a licensed attorney for advice regarding your specific situation.