{"id":898962,"date":"2021-07-21T15:41:44","date_gmt":"2021-07-21T21:41:44","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=898962"},"modified":"2021-07-21T15:41:47","modified_gmt":"2021-07-21T21:41:47","slug":"mechanics-lien-5-things-to-know","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/mechanics-lien-5-things-to-know\/","title":{"rendered":"Mechanic\u2019s Liens: Five Things That Everyone Should Know"},"content":{"rendered":"\n

Deb Mackay and Carl Pebworth | Faegre Drinker Biddle & Reath<\/a><\/p>\n\n\n\n

Anyone who works in construction and on construction projects will deal with mechanic\u2019s liens<\/a>. Sometimes referred to as construction liens or property liens, mechanic\u2019s liens are typically statutory creations designed to protect contractors, subcontractors and suppliers that have not been paid for work performed or materials supplied relating to work performed on a piece of real property. Here are five things to keep in mind when dealing with mechanic\u2019s liens.<\/p>\n\n\n\n

Knowing your mechanic\u2019s lien rights as a contractor, supplier or property owner is critical<\/strong>. Mechanic\u2019s liens are created by statute in every state. That means that mechanic\u2019s lien rights and practice can vary \u2014 sometimes dramatically \u2014 between jurisdictions. It is essential to know and understand how a given jurisdiction interprets, applies and enforces mechanic\u2019s liens.<\/p>\n\n\n\n

Mechanic\u2019s lien rights can be lost if not properly perfected<\/strong>. As statutory creations, most jurisdictions insist upon strict compliance with rules necessary to create or \u201cperfect\u201d a mechanic\u2019s lien. When a lien must be perfected \u2014 and where and how to do that \u2014 are important issues and concerns. Once a lien is properly perfected, many states require the lienholder to file a claim in court to enforce the lien within an expedited timeframe (often a one-year deadline) or a properly perfected lien can expire.<\/p>\n\n\n\n

When properly perfected, mechanic\u2019s liens are a powerful tool for lienholders<\/strong>. Assuming that a lien has been properly perfected, it can afford substantial and valuable leverage for a lienholder to get paid. Many states award mandatory attorney\u2019s fees for mechanic\u2019s lien claims, for example. Taken to a final conclusion in a worst case-scenario for property owners, mechanic\u2019s liens can be foreclosed against the property. This ultimately results in a judicial sale of the property. Property owners and potential lien claimants therefore need to attend closely to lien claims.<\/p>\n\n\n\n

Mechanic\u2019s lien disputes can be substantively quite complicated for all parties concerned.<\/strong> Efforts to enforce a mechanic\u2019s lien or to defend against a mechanic\u2019s lien can be quite involved, particularly if a substantial amount is at stake. Who has lien rights? Has the lien been properly perfected? What is the amount of damage that may be collected in lien claims? Was the lien claim filed in time? These are just some of the issues that can be disputed.<\/p>\n\n\n\n

Mechanic\u2019s lien statutes and the rights and obligations that flow from these statutes can change in important and substantive ways.<\/strong> For example, Texas just enacted new legislation affecting mechanic\u2019s, contractor\u2019s and materialmen\u2019s liens. As with many jurisdictions, Texas mechanic\u2019s lien statutes were originally promulgated more than 100 years ago. The new legislation will \u201cmodernize\u201d these statutes in ways that in several instances impact the rights and obligations surrounding mechanic\u2019s liens.<\/p>\n\n\n\n

Effectively enforcing and defending mechanic\u2019s lien rights claims is essential in today\u2019s commercial market. Understanding and reacting to circumstances where lien rights are an issue can be the difference between a timely completed and profitable project and a project that experiences time delays, cost overruns and revenue shortfalls.<\/p>\n","protected":false},"excerpt":{"rendered":"

Deb Mackay and Carl Pebworth | Faegre Drinker Biddle & Reath Anyone who works in construction and on construction projects will deal with mechanic\u2019s liens. Sometimes referred to as construction liens or property liens, mechanic\u2019s liens are typically statutory creations designed to protect contractors, subcontractors and suppliers that have not been paid for work performed… Continue reading Mechanic\u2019s Liens: Five Things That Everyone Should Know<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[10772],"tags":[9895,391,441],"class_list":["post-898962","post","type-post","status-publish","format-standard","hentry","category-mechanics-lien-law","tag-advise-consult","tag-construction-liens","tag-mechanics-liens","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nMechanic\u2019s Liens: Five Things That Everyone Should Know - Advise & Consult, Inc.<\/title>\n<meta name=\"description\" content=\"Anyone who works in construction will deal with mechanic\u2019s liens. 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