Elise Schwarz

A Mechanic’s Lien (or lis pendens, notice of pendency) is a legal tool by which contractors, subcontractors, suppliers, architects and engineers (among others) can ensure that they get paid for their labor and materials when a property owner has either refused to make payment, or is very late in paying.

The Mechanic’s Lien is an “encumbrance” on the property on which the work has been performed or the materials been supplied for. While it is in effect, the owner no longer has “clear title” to the property. The Mechanic’s Lien alerts prospective buyers that, if they buy the property, they are buying the seller’s debt. Since it is rare for anyone to want to buy a debt, much less one that will subject them to an imminent lawsuit, the lien often has the effect of rendering the property unable to be sold. For this reason, the Mechanic’s Lien is at its most effective when a property owner wants to sell quickly. Of course, they can still sell, but they have to satisfy the debt, and get the Mechanic’s Lien removed first.

A Mechanic’s Lien must be properly prepared, filed and served in order to have any legal effect.

In the case of a single family private dwelling, the lien must be filed within 4 months of the last date labor or materials were provided.

For any other property, the time to file is extended to 8 months.

If you have not met the necessary deadline, a Mechanic’s Lien is not for you. In that case, you will likely need to file a lawsuit and get a temporary restraining order to have the same effect. Since a judge may not give you the temporary restraining order, it is always in your best interests to act expeditiously and file the less laborious Mechanic’s Lien in good time.

A Mechanic’s Lien lasts for one year. However, you can extend it so long as you do so within that one year.

The Mechanic’s Lien is filed in the appropriate county: the county in which the property is situated.

The Mechanic’s Lien must be served on the owner five days before filing OR 30 days after filing. There are various methods of filing available, depending on the circumstances. However, if you choose the wrong method, or if you don’t serve it at all, the Mechanic’s Lien will be voided.

Once the Mechanic’s Lien is filed, the property owner can bond the Mechanic’s Lien or start legal proceedings to discharge it.

If the property owner does pay you (and payment often comes as soon as the property owner realizes it is encumbered), you can discharge the Mechanic’s Lien by filing a certificate in the same county that the lien was filed, acknowledging the satisfaction and release of the Mechanic’s Lien.

Whatever the property owner decides to do, if it does not involve paying you then your next step is to bring an action to foreclose on the Mechanic’s Lien. This could result in a court ordering the property be sold to satisfy the lien.

However, if you do nothing, the Mechanic’s Lien will be automatically discharged one year after filing.

Other Pitfalls

If you exaggerate the circumstances around the Mechanic’s Lien, or submit incorrect information to get the Mechanic’s Lien, or if you file it late, or serve it improperly, you will not be protected. Furthermore, depending on the circumstances, you could expose yourself to some fairly hefty liability: treble damages and attorneys fees being awarded against you – and in favor of the property owner!

Therefore, you should always act via a trusted attorney.

The Law Offices of Elise Schwarz can assist you in filing an effective and accurate mechanics lien, as well as taking action to foreclose on the lien.

If you feel you have had a Mechanic’s Lien placed on your property unfairly, The Law Offices of Elise Schwarz can act to have it removed.

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