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Lien Law Requirements in States Other Than Florida
Mechanic lien rights are a unique element of the construction industry. These rights are
given to construction project operators to allow them to file a mechanic's lien if they
aren't paid for their services. However, it's important to know who has these rights, what
they mean exactly, and how you should handle them when they come up.
When it comes to different state lien laws, the main difference is the fact that each state
has different timelines. This can affect when you have to notify an owner that you are
working on a project. It can also affect the collections and invoicing process when you
need to file a notice of intent and the mechanic lien itself.
What Are Lien Rights?
Lien rights give legal permission to file a mechanics lien against an owner's property if
payment isn't received for construction service. Liens are a legal claim that is made on
the title of the property, and they almost always require the debt to be paid to be
cleared.
The purpose of these lien rights is to give added protection and minimize risk for
contractors, suppliers, and subcontractors. Everyone in these categories puts a large
amount of their own time and money into a project up front, with the understanding their
customer will pay.
A mechanic's lien is filed by the person who hasn't received payment on a private
construction project yet had provided either labor or materials for said project. The goal
of the lien being filed is to receive payment on the project. However, in the event the
payment doesn't come, the lien filer can enforce foreclosure on the property, where they
will then receive their payment from the sale of the property.
Who Has Lien Rights?
The good news is that every state in America has lien rights. However, they can vary
from state to state, so it's best to find out the specific guidelines in your state. In most
cases, the following people have the right to file a lien when needed:
* Direct contractors
* Subcontractors
* Material suppliers
* Equipment leasing companies
* Architects
* Engineers
* Laborers
Working on a construction project will give the above people lien rights automatically.
However, if the correct steps aren't taken in the construction process, it's possible to
lose your right to file a lien, even when needed.
Preserving Your Lien Rights
You don't want to lose your lien rights simply because you didn't follow the right steps or meet the deadlines of the proper procedure. Let's look at how to make sure you keep your right to file a lien if the need arises.
Send a Preliminary Notice
Almost every state requires you to send a preliminary notice to keep your lien rights.
This is a notice that's sent in the beginning days of your construction project. The time
limit for this notice to be sent varies by state, so it's best to look into your local
mechanic's lien laws to ensure you abide by the deadline.
If your state requires you to send a preliminary notice but you don't, you'll lose your right
to file a lien on your project.
Follow Deadlines
You must send all notices and file any liens in the timeline that is framed out through your state's mechanics lien laws. When you file paperwork after your deadline, there's a good chance your lien rights have been forfeited.
Takeaway
Lien rights are a great way to keep construction project workers from losing their own
money in a project. If you want to make sure you're doing everything you can to keep
your lien rights, contact Nationwide Notice, Inc. We'll help ensure all your paperwork is
filed correctly and on time based on your local laws so you can be protected by your
right to file a lien if the need presents itself.
Nationwide Notice, Inc. focuses on assisting construction companies to get their
construction payments. Our goal is always to protect receivables, no matter the size or
kind of construction company. As a self-service and full-service lien service and
preliminary notice company, that's just what we do. To learn more about Nationwide
Notice, Inc, check out our main website here, or click this link to learn about our
process.