Timing is an important aspect when a contractor or sub-contractor wants to obtain a mechanics’ lien on a property to secure the owner’s unpaid obligation.
Based on a number of questions from readers regarding the time for filing a mechanics’ lien, we wanted to clarify the time frame in which a party must act to secure payment for labor or materials supplied by a contractor or general contractor in the improvement of real property.
Contractors must file a petition to enforce a mechanics’ lien within 180 days from the last day any work was performed on the project. Subcontractors, however, have an additional hurdle before filing a petition. A subcontractor must first provide written notice to the owner of the property by registered or certified mail, return receipt requested within 120 days from the last day of any work performed on the project. Notice also may be given by posting on the door of the property if the subcontractor is unable to serve the owner by mail. A subcontractor who fails to meet this requirement will be barred from obtaining a mechanics’ lien.
Contractors and subcontractors wishing to file a mechanics’ lien also must provide information regarding ownership of the property, the property itself, and the project. Specifically, a petition for a lien must contain the name and address of the owner of the property; a detailed description of work provided and materials furnished; a statement that the construction is either new construction or a statement that work increased the building’s value by at least 15%; the specific dates work was completed or the materials were furnished; the name of the person or company for whom work was performed or materials furnished; the total amount claimed; and a description of land and description of building. Further, the petition must include all relevant material papers and an affidavit from the petitioner that sets forth the facts upon which the petition for a lien is based. The failure to meet any of these requirements may cause the dismissal of the petition.
Any contractor or subcontractor considering a mechanics’ lien should start as early as possible on the extensive preparation required to meet the close filing deadlines. Otherwise, this important means of securing a claim for work performed will be lost as to that work.
For further information on this subject please contact Michael Siri at 410-583-2400.
Contractors and subcontractors wishing to file a mechanics’ lien also must provide information regarding ownership of the property, the property itself, and the project. Specifically, a petition for a lien must contain the name and address of the owner of the property; a detailed description of work provided and materials furnished; a statement that the construction is either new construction or a statement that work increased the building’s value by at least 15%; the specific dates work was completed or the materials were furnished; the name of the person or company for whom work was performed or materials furnished; the total amount claimed; and a description of land and description of building. Further, the petition must include all relevant material papers and an affidavit from the petitioner that sets forth the facts upon which the petition for a lien is based. The failure to meet any of these requirements may cause the dismissal of the petition.
Any contractor or subcontractor considering a mechanics’ lien should start as early as possible on the extensive preparation required to meet the close filing deadlines. Otherwise, this important means of securing a claim for work performed will be lost as to that work.
For further information on this subject please contact Michael Siri at 410-583-2400.
0 comments:
Post a Comment