Maryland Mechanics' Lien Law Flashcards
What is a Lien
A Lien specific legal process that can be used by contractors and others as a lawful remedy for securing payment for labor or materials that have been used to improve another person’s property.
What is a mechanic’s lien in Maryland?
In Maryland, a mechanic’s lien is a “hold” against a property. Mechanic’s liens can be placed on non-public new construction or renovations that increased the value of the property by 15%.
What is a Notice to Owner by Subcontractor
Notice to Owner by Subcontractor lets the property owner know of the possibility that a lien could be placed on their property by subcontractors, material suppliers, and equipment rental companies who are not paid.
When must a notice of an intent to lien be filed
a notice of intent to lien must be served upon the general contractor and owner of a project within one hundred twenty (120) days of the claimant‘s last day of work on the project.The notice must be sent by registered or certified mail, or personally delivered.
When and where do you file a lien?
You must file a lien against the property within 180 days from the time the work has been finished or materials supplied. The lien is filed at the circuit court of the county in which the project took place.
Time in Which to File a Lien Foreclosure Petition
The right to enforce the lien will expire one year from the day on which the petition was first filed.
Maryland law is unusual in that it provides that a party cannot have a lien against property until a suit is filed, a hearing held, and a judge orders the lien be placed.
An owner must be notified of the possibility of a lien being perfected against their property within ____________ days after doing the work or furnishing the materials.
120 days
Subcontractors must inform an owner of their intent to lien by:
Serving a Notice to Owner by Subcontractor, or Posting the Form of Notice on the front door
What method of providing the owner the “Form of Notice” is acceptable?
Certified Mail, Registered Mail, or Personal Hand Delivery
If a property has more than one owner, does a subcontractor would need to formally notify each owner with “Form of Notice”?
No, just one of the owners.
If, on the account of absence, the owner is not able to be contacted, the “Form of Notice” can be posted on the front door or front of the building, but with this method there has to be a witness to the posting.
True
A Prime Contractor is in default in paying a Subcontractor. The Subcontractor serves the owner “Form of Notice”. The owner, after checking payment records to the Prime Contractor, finds that monies due to this Subcontractor were in fact provided to the Prime Contractor to be disbursed to this Subcontractor. At this point, is it legal for the owner to withhold from the Prime Contractor, the amount needed to pay this claim from future payments still needed to complete the contract with the Prime Contractor?
Yes
An owner receives notice of an order to attach a lien against his property. How long does the owner have to show cause as to why a lien shouldn’t be attached?
15 days
From the date that a contractor or other entitled person petitions to establish a lien at the circuit court, how long does the contractor have to enforce the lien?
1 year
Anyone seeking to claim a lien must file a petition in the circuit court within __________ after the work has been finished or materials furnished.
180 days
