Question

Lien laws have been enacted to provide protection for various people. Prior to filing a mechanic’s lien, what is the process and what must someone do in order to make a lien claim (i.e., in order to have the right to file a mechanic’s lien)? Mention one strategy that could be used by the owner to avoid a mechanic’s lien.    

Answer 1

The steps of filing a mechanics lien are

1. Send Preliminary Notice (necessary)

2. Send Notice of Intent (if payment issues arise)

3. File a Mechanics Lien ( last resort )

4. Enforce the Lien

in order to have the right to file a mechanic’s lien, one must be

1. a laborer. all laborers possess the right to file mechanic’s lien.

2. In many states, sending a preliminary notice is a required step in order to maintain your lien rights. If you’re working on a project located in one of these states and you did not send a preliminary notice, there is a very good chance that your lien rights will be invalidated.

3. Donot miss any deadlines to sent notices.

strategies that could be used by the owner to avoid a mechanic’s lien are,

1. Bonding the project

Construction bonds are a type of surety bond that that will act as substitute security for a mechanic’s lien. These bonds ensure a construction project’s bills will get paid. So, all claims made by contractors, subcontractors, suppliers or others will no longer be in the form of a mechanic’s lien against the property.

2. Issue Joint Checks

A joint check provides an owner with assurance that its contractor will pay a subcontractor or material supplier. The check will be made out to both the contractor and the potential lien claimant, thus forcing both the contractor and potential lien claimant to endorse the check.