Posts Tagged ‘All States’

So What Is A Mechanic’s Lien?

On July 20, 2008 Author By Scott Wolfe Jr        

The “construction lien” goes by many names in the United States: Claim of Lien, Statement of Claim or Privilege, Mechanics Lien, and more. And while the name and technicalities are different from state-to-state, construction liens generally operate similarly across the nation.

So what exactly is a mechanic’s lien?

When you run a Google search for “Mechanic’s Lien” an entry from Wikipedia is the first result. According to the collective Wikipedia editors, a mechanic’s lien is “a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.” Read the full Wikipedia entry here.

The entry goes on to state that liens exist to “protect the contractors.”

Here are some general theories to keep in mind when trying to understand construction or mechanics liens:

  • In general, those who perform labor or supply materials on a construction project will have the right to lien the project;
  • The method of filing a construction lien varies state-by-state;
  • Your lien must be filed within a defined timeframe;
  • If your lien does not produce payment, you will need to “perfect” or “foreclose” on your lien within a defined time period.

To learn more about your state’s requirements, click on your state’s name in our blog’s navigation. Or check out your state’s requirements at the following charts:

Quick Guide to Lien Timelines - Chart of Lien Filing Deadlines
State-By-State Notice Requirements Chart

Posted in:     Mechanics Lien  /  Tags: , , ,   /   Leave a comment

The Effectiveness and Strength of Construction Liens

On June 12, 2008 Author By Scott Wolfe Jr        

Andrea Goldman, a construction attorney in Massachusetts, recently placed an interesting post about the strengths of construction liens on her blog, “Home Contractor vs. Homeowner.”

While the article specifically discusses mechanic’s liens in Massachusetts, the points ring true about liens across the United States:
  • Liens are less costly than filing suit;
  • Liens are a very effective means of pursuing payment;
  • Liens prevent progress payments for new construction projects, prevent the sale of property, and force others to come to the table to try and settle the dispute;
  • Even improperly filed liens require the other party to spend legal fees to file an action seeking the dissolution of the instrument.
To read Ms. Goldman’s article, click on this link:
Posted in:     Around The Web, From The Experts, Mechanics Lien  /  Tags: , , , , ,   /   1 Comment

Why Lien?

On November 11, 2007 Author By Scott Wolfe Jr        

Dear Contractor/Subcontractor/Supplier:

There are some customers or prime contractors who will not pay you after a significant amount of work, labor, services and materials have been invested into performing a job. The founder of Zlien’s father and grandfather were both general contractors in New Orleans, LA, so we know your frustration.

The best way to collect on these non-paying accounts is to begin collecting quickly and thereby motiving the debtor to resolve your claim.

Mechanic’s liens – the documents created and filed by Zlien – are inexpensive and hard-hitting. These filings put restrictions on the job-site property, they entangle the owner with your dispute, they can freeze public funding, and more.

You may be pressured to hold-off on filing your lien and beginning the process of collecting on your account receivable. Homeowners may attempt to postpone payment by promising future funding, and many general contractors – perhaps pointing to a “pay when paid” clause – may promise payment once it gets paid on the job.

These “hold ups” on payment – even when legitimate or well-reasoned – will not suspend the short and strict time period you have to file your lien. If you wait too long, you may lose your right to file a lien – and that means you lose the ability to inexpensively take this important step in collecting on an account receivable and in preserving your rights against all parties funding the project.

Filing a lien will stake your claim. If you were hired by the Owner, it will restrict the owner’s ability to abandon, sell or otherwise transfer the property. If you were hired by the Contractor, a filed lien gives you the right to not only seek payment from the Contractor, but also from the Owner, thereby increasing your chances of getting paid.

Not only is the founder of Zlien the son and grandson of general contractors, but he is also a successful construction attorney licensed to practice law in both Louisiana and Washington. Scott Wolfe, Jr. was named as a Top 50 New Orleans Attorney in 2006 and 2007.

Zlien makes filing a mechanic’s lien fast and easy, and we have the experience and knowledge to help you get paid on a non-paying construction job.

Posted in:     About Our Services, Mechanics Lien  /  Tags: , , , , , , , , , , ,   /   Leave a comment
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