Home or Business Owner Litigation
Here’s a scenario that you may have experienced: You pay your contractor for work, materials and supplies related to your remodeling/building project with the implied understanding – AND AS PER THE CONTRACT – that he in turn will pay his subcontractors and suppliers for their part. This is, of course, is just one of the responsibilities of the general contractor running your project. But he doesn’t pay them for whatever reasons, and you unexpectedly find yourself slapped with a lien against your property. Which makes you liable for paying your contractors’ debts. AND you end up paying twice for the work and materials.
First, understand the Mechanic’s Lien exists to secure payment for services, labor and material on both personal and real property.
However, the creation and enforcement mechanisms differ depending on whether real or personal property is involved. The law of mechanic’s liens on real property governs the creation and enforcement of these liens on items of personal property that have been attached to real property in such a way as to be a fixture.
To have an enforceable lien, it usually must be “perfected.” This means that the holder of the lien must comply with the statutory requirements for maintaining and enforcing the lien. These requirements, which contain time limits, are generally as follows:
Providing the required preliminary notice to the property owner disclosing the entitlement to the lien (some states).
Filing notices of commencement of work (some states).
Filing notices in the required public records offices of the intention to file a lien if unpaid (some states).
Filing the notice or claim of lien in the required public records offices within a specified period of time after the materials have been supplied or the work completed (all states). The law varies from state-to-state on both the triggering event and the timing of this. Some states require the filing within a period measured from the time when the claimant completes its work, while others specify the event as being after all work on the project has been completed. The filing time periods after the triggering event vary, with 4-6 months being common.
Filing a lawsuit to foreclose the lien within a specified time period.
If you believe the Mechanic’s Lien against your property has not been “perfected” in a legal manner than please contact the Law Offices of R.S. Kohn and we can help with any litigation that may be necessary.