Nationwide Blogs

Lien Laws Update: Georgia

A lien is commonplace both for residential and construction properties. For the latter, it is a claim that is made against that property, either by the contractor or subcontractor, regarding unpaid work that has been done on the property.
This is a more commonplace issue than most realize. A better understanding of the current construction lien laws in Georgia is crucial. Here is an update on the most relevant lien laws in Georgia.

From the Subcontractor Side

This can depend on whether a Notice of Commencement (NOC) has been recorded and posted on the property. If it was, then lienors have to give notices promptly to protect those lien rights.
The notice must be given within 30 days of either delivering materials or starting work, regarding both the general contractor and owner. A Record of Preliminary Notice of Lien Rights must also be presented within 30 days of starting work. It should be sent to the owner or general contractor within seven days of the recording.
Make sure to record a Claim of Lien within 90 days from the last delivery of materials or date of work. Be sure to send a copy to both the owners and the general contractor.
If there is no NOC posted or recorded, the lienor can go right to the lien. That said, a sworn affidavit won't protect the owner and will not protect the lienor's rights since no NOC has been posted or recorded.

From the Property Owner's Side

In a construction project, the general contractor is considered to be the owner's representative. The general contractor gets the notices and performs statutory steps. That said, the owner has no recourse against general contractors should they not carry out their statutory duties.
The most crucial step is recording a NOC and posting it on the worksite within 15 days of starting work with the general contractor. Without the NOC, potential lienors are exempt from just about all notice requirements. They can simply go into the recording of a claim because without that NOC, the lienor won't know who to give the notice to.
A Notice to the Contractor will need to be sent to anyone that isn't in regular contact with the general contractor within 30 days of the delivery of materials or the beginning of work. The NTC goes to the owner and general contractor and is only required if the NOC has been recorded and posted. Subcontractors don't have to issue an NTC.

Providing the Proper Lien Knowledge

At the end of the day, Georgia lien laws are strictly interpreted because of the impact that a lien can have on the property title. The process for filing a claim of lien can be a bit complicated and requires proper knowledge to complete. Knowing who can have the lien, who it is against, and the statute of timing on those liens is just part of the process. Make sure that you have the proper lien information to file your claim.
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. Lien rights are a great way to keep construction project workers from losing their own money in a project. Nationwide Notice, Inc. focuses on assisting construction companies to get their construction payments. As a self-service and full-service lien service and preliminary notice company, that's just what we do. Our goal is always to protect receivables, no matter the size or kind of construction company. To learn more about Nationwide Notice, Inc, check out our main website here, or click this link to learn about our process.