Joseph Evans | Lasher
Washington’s construction lien statutes provide contractors with remedies to secure payment from property owners for furnished labor and/or materials. These statutory requirements are strictly enforced, and even minor mistakes can invalidate an otherwise legitimate lien and eliminate a contractor’s ability to foreclose. The following are some of the most common mistakes that can cause a lien to be invalidated or deemed unenforceable, and how contractors can avoid such errors.
- Failing to Record the Lien within Ninety (90) Days
A construction lien must be recorded within ninety (90) days of the last date on which labor or materials were furnished to the property. Washington courts will strictly enforce this deadline, and recording a lien even one day late will void it entirely. The best practice is to record a lien as soon as practicable after the work has concluded, instead of waiting until just before the deadline.
- Misstating the Last Date Labor or Materials Were Provided
Because the ninety (90) day recording deadline is tied directly to the last date labor or materials are provided to the property, that date is often heavily scrutinized. Property owners routinely challenge lien claims by reviewing emails, text messages, receipts, and invoices to dispute the last day labor or materials were supplied. If the date is proven incorrect, the lien may be invalidated entirely. Contractors should be careful to document and verify this date before recording any construction lien.
- Naming the Wrong Property Owner
A recorded lien must identify the correct owner – or reputed owner – of the subject property. Contractors will frequently make errors when properties are owned by limited liability companies or trusts. While courts may allow a lien to survive if the owner can be reasonably identified from the recording, misidentifying a property owner creates unnecessary risk. Verifying the owner of the property by reviewing title information before recording a lien is critical.
- Failing to Timely Foreclose on the Lien
Recording a lien is only the first step. A lien claimant must initiate a lawsuit to foreclose the lien within eight (8) months from the date when the lien is recorded. If no foreclosure action is filed within that period, the lien expires and becomes unenforceable. Although recorded liens are often used as leverage during settlement negotiations, contractors must be mindful of the foreclosure deadline. Once the deadline passes, a lien can no longer be enforced, even though it may still appear on title records.
Washington’s lien statutes are a valuable tool for contractors, but strict compliance is required. Many liens fail because of avoidable technical problems. Contractors should consider consulting with experienced construction attorney and, when appropriate, using a professional lien recording service.
When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net.