Can a Contractor File A Lien Against a Homeowner?
Can a Contractor File A Lien Against a Homeowner?
In the world of construction and contracting, disputes can sometimes arise over payment.
Whether it’s a simple renovation or a major construction project, contractors invest substantial time, money, and effort to complete their work.
Unfortunately, not all homeowners are prompt with payments, and this can place contractors in difficult financial situations.
To protect their rights and ensure prompt payment, contractors have a powerful tool at their disposal known as a Mechanic’s Lien.
In this article, our experts here at Speedy Lien, Inc will explore what a Mechanic’s Lien is, how it works, and the essential steps for contractors and vendors to navigate this process and be paid the money they are owed.
Contractors have the right to file a Mechanic’s Lien against a property if they have not been paid for their services or materials. A Mechanic’s Lien is a claim that allows contractors to have a legal interest in the title of the property until the outstanding debt is settled.
Ok, that’s the mini answer in place. Let’s start by finding out more about protection for contractors if they’ve not been paid.
Understanding Mechanic’s Liens
A Mechanic’s Lien is a legal claim placed against a property by a contractor, subcontractor, or supplier who has not been paid for their work or materials provided.
The purpose of a Mechanic’s Lien is to ensure that contractors and other parties involved in a construction project receive rightful payment for their services.
By filing a Lien against a homeowner’s property, the contractor gains a legal interest in the property until the outstanding debt is settled.
A Mechanic’s Lien attaches the amount you are owed for materials or services rendered, to the title of the property in question. In other words, it prevents the property owner from selling, transferring title or refinancing said property.
“A mechanic’s lien is a legal claim placed on a property by a contractor, subcontractor, or supplier who has not been paid for their work or materials provided.”
How much time do I have to file a Lien?
Your last date of service (work performed) for the project is critical to be able to file a Mechanic’s Lien.
New York Mechanic’s Lien Law:
For Commercial Properties – your lien must be filed no later than 8 months since the last date of work performed.
For residential properties – your lien must be filed no later than 4 months since the last date of work performed.
Connecticut Mechanic’s Lien Law:
Your lien must be filed no later than 90 days since the last date of work performed. **Additionally, Connecticut requires a Notice of Intent to be served prior to filing a Lien, if you did not contract directly with the property owner.**
New Jersey Mechanic’s Lien Law:
Commercial Properties – Your lien must be filed no later than 90 days since the last date of work performed.
Pennsylvania Mechanic’s Lien Law:
Your lien must be filed no later than 6 months from the last date of service to all properties. **A Notice of Intent is required if you did not contract directly with the property owner.** The Notice of Intent must be served 30 days prior to filing your Lien Claim (within the 6 month time limit).
Guidelines to follow
There are strict guidelines contractors must follow to be able to file a Lien and to enforce their lien claim.
Failing to comply with these requirements can jeopardize the lien, making it crucial for contractors to hire a professional firm to handle the filing of your Lien claim
Head over to our Frequently Asked Questions to find out more.
“By filing a lien against a homeowner’s property, the contractor gains a legal interest in the property until the outstanding debt is settled.”
As a contractor, you need to know what your rights are.
Read on to find out more.
Eligibility for Filing a Mechanic’s Lien
Before a contractor can file a mechanic’s lien, they must meet certain conditions.
These typically include:
- Timely Filing: Contractors must adhere to strict deadlines for filing a mechanic’s lien. Surpassing the deadline will render the lien invalid.
- Completed Work: Your Mechanic’s Lien is filed for the exact amount you are owed, strictly for the work performed and rendered to date. You cannot Lien for work not performed.
- Who May File a Lien: A Lien can be filed by a contractor, subcontractor, material supplier and or anyone who provides professional services such as architectural and engineering services. In general, anyone who provides labor, materials or professional services for the improvement or construction of a property can file a Mechanic’s Lien.
Who gets served after a Lien is filed?
A Mechanic’s Lien is served upon the property owner and any party involved in the matter, such as the general contractor, party who hired you and any lenders who have a financial interest in the property.
- The Owner of the Property.
- The Party that hired you.
- The General Contractor if you were a Sub-Contractor to a Sub-Contractor.
Failure to properly serve the Mechanic’s Lien can result in the lien being invalid and unenforceable.
Property owners having a mechanic’s lien filed against their property’s title requires the lien to be satisfied before the property can sell or refinance.
Can a Contractor File A Lien Against a Homeowner? – To End On
Mechanic’s Liens are a crucial tool for contractors to protect their interests to ensure they are paid what they are owed.
Speedy Lien has the expertise and experience to navigate the legal requirements and procedures involved in filing a lien. We can ensure that all the necessary paperwork is filed correctly and on time, minimizing the risk of errors.
Filing a mechanic’s lien can be stressful and time-consuming, especially if you are already dealing with the fallout of an unpaid debt. Hiring a professional company to handle the filing process can give you peace of mind and free up your time to focus on other aspects of your business.
Hiring a Speedy Lien is more cost-effective option than retaining an attorney and pursuing a lawsuit to collect unpaid debts. The filing process can be faster and less expensive than pursuing legal action, which can save you time and money in the long run.
By letting the experts handle the filing process, you can ensure that your legal rights are protected and increase your chances of getting paid what you are owed. Don’t let unpaid debts put your business at risk – contact Speedy Lien, a professional mechanic’s lien filing company, today and take the first step towards securing your payment.
Visit our website to submit your lien claim now. We have an easy via our Online Submission, same day processing and simple price structure. Call today for a free consultation on your Lien rights.
Dillon Nash, Vice President
Speedy Lien, Inc. – “The Mechanic’s Lien Clearinghouse”
212-203-7420 x 104 or 516-679-6702 x 104
