MECHANICS LIENS
FAQ's

What is a Mechanics Lien?

A Mechanics Lien is an instrument (document) which typically contains anywhere between 1 to 5 pages of content, but can include as many pages as needed by the lien claimant. It’s ultimate purpose is to notify all those who have an interest in the property that you intend to lien the property and in doing so place a cloud on the record of title by means of recording it as a “public record” in the designated County Recorder of Deeds Office. Doing so makes it difficult for the owner to convey the property through a sale or secure loans against it.

How does filing a Mechanics Lien help me exactly?
Several ways: First and foremost it is a tool which protects your money. Placing the Owner, Lender and G.C. (should one exist) on notice lets all the key people know you haven’t been paid and you intend to protect your investment, be it material, labor, or both. As mentioned above, it places a cloud on the title which makes it difficult for the owner to convey the property or secure loans against it. The majority of the time, construction projects large and small filter though a title company prior to the closing on a property. If you are not found on the sworn statement provided by the G.C. to the Owner and, or Title Company, the lien will bring this to light and the Title Company will have to address your lien and notify the owner of it’s existence. In most instances it prompts a resolution in the way of payment to you.

Who can file a Mechanics Lien?

Anyone who has furnished material or labor which results in an improvement which is fixed or attached to the property and in most cases constitutes enhancement.

When should I file a Mechanics Lien?

Generally there are timing requirements which have to be met (see “Timing Requirements” on our home page). If you know early on that you can expect difficulty securing payment from your customer it is advisable that you get your lien on record as soon as possible. AGAIN MAKE SURE YOU UNDERSTAND THE TIMING REQUIREMENTS WHICH HAVE TO BE MET BEFORE YOU START THE JOB.

What constitutes “Lienable Work”?

Generally speaking, if you furnish material or labor which results in something that is fixed or attached to the property it is considered “Lienable”. However other less tangible work can also be classified as “Lienable”, i.e. Architectural, Engineering work, etc. Contact GRS if you are unsure.

Do I need to have a written Contract to be entitled to a Mechanics Lien?

No. Certainly it’s always better to have a written contract, but oral contracts will not preclude you from recording a lien against a property.

What if I didn’t have a Contract directly with the Owner of the Property? Can I still record a Mechanics Lien against the property?

Yes, if you furnished material or labor to a job site you are entitled to a Mechanics Lien. In the body of the Mechanics Lien document we simply need to show the chain of contracts along with all the other pertinent information required to perfect your Mechanics Lien.

I shipped material to a job site, but didn’t actually perform any work at the premises. Can I still file a Mechanics Lien against the property?

Yes. As long as you can prove your material was in fact used in the construction and improvement of the premises you are entitled to a Mechanics Lien.

How long should I wait after I file / record my Mechanics Lien to take further legal action if the Mechanics Lien doesn’t prompt the immediate results I had hoped for?

Each situation is unique so there is no set answer. Ideally we want the Mechanics Lien to do what it was designed for….rattle some cages and prompt payment, however while results are often times immediate, there are also times when it takes weeks or months before a resolution is reached and payment is secured. Be advised that Mechanics Liens are good for two (2) years from your last day of work, or of shipping materials to the premises. To keep your Mechanics Lien alive beyond this point, you must file suit to foreclose within this time frame. It is best to discuss with your own legal counsel when and how you should act.

My customer paid me…..What do I do now about the Mechanics Lien?

Contact GRS and we will prepare a Mechanics Lien Release. Typically the release is given to the party requesting it in exchange for payment. Depending on the circumstances, either the Title Company, Owner, or you the Lien Claimant take responsibility for recording the Satisfaction and Release of Mechanics Lien in the designated County Recorder of Deeds.

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