When contractors or suppliers are not paid for a job, the law allows them to place a mechanic’s lien on the property. In most cases, a mechanic’s lien has priority over mortgages, equity loans, and other financial obligations the property owner has. In order to be effective, the proper legal procedures to place the mechanic lien must be followed. This is where a skilled real estate law attorney, like an appellate lawyer in Los Angeles, CA such as the Tim Kassouni lawyer, can help.
Legal Steps for a Mechanic’s Lien
To begin the process of placing a mechanic’s lien, the party placing the lien must follow certain steps. There are certain factors that will come into play depending on the specifics of the situation, such as whether or not the property is a single-family residence, rental property, or business property.
The first step the contractor must do is serve a preliminary notice to the property owner and any lenders of the property regarding the contractor’s right to file a mechanic’s lien. The notice must include:
· The contractor’s name and address
· The date the work began on the property or the day the materials were delivered
· The type of work that was done or the materials that were provided
If the payment is still outstanding once all the work is completed, the contractor must serve notice to the occupants, owners, and any lenders of the property of their intent to file a mechanic’s lien. Every state has its own laws regarding the timeframe, but it is typically within 90 days from the last day the contractor worked on the job. In addition to the above information, this intent to file must also include the amount of the outstanding balance owed.
The next step for the party filing the mechanic’s lien is to properly record in in the correct jurisdiction. The mechanic’s lien must be recorded within a certain deadline from the last day of work. That deadline depends on the laws of the state you live in. The lien needs to be recorded in office of the recorder of the county in which the property the work was done at is located. In some states, if the property the lien is being placed on is an owner-occupied single-family home, the owner must be provided with a written notice of the lien within 10 days of the recording.
A mechanic’s lien is a critical tool to protect contractors and business owners from not being paid for work or materials they supply. However, in order to be effective, it is crucial to follow all the laws your state requires when filing the lien, otherwise the lien could be ruled invalid. In order to avoid this situation, a real estate law attorney can ensure that every required step and every required deadline is adhered to.
Contact a Real Estate Law Attorney Today
If you are considering or involved in any type of real estate transaction, contact a real estate attorney today to set up a free initial consultation.