mechanic's lien (Real Property)

Question 1

what is a mechanic’s lien

Answer 1

A security interest on the building and such part of the land as is necessary for its enjoyment given to those who add value to real property through their labor or supply of materials valued at $150 or more and are properly licensed to do so

Question 2

who is a mechanic {or material man}

Answer 2

those who build, improve, or repair buildings, or do any kind of work to repair or alter personal property

those who supply materials

Question 3

what must the contractor do to acquire a mechanic’s lien

Answer 3

(1) file memorandum of lien in the clerk of court’s office

(2) file along with the memo, a certification that they have mailed a copy of the memo to the owner within 90 days of completion of the work

(3) memo of lien must include:
- names and addresses of the owner of the property and claimant
- amount of verified claim and when payment is due
- intent to claim a lien
- description of the property
- date from which interest is claimed
- claimant’s license number
- notice to owner [must be mailed]

Question 4

property owner’s defenses to mechanic’s lien

Answer 4

(1) blanket lien (for multiple properties)

when a mechanic’s lien is filed, the amount of materials used and charges for each property should be apportioned to each lot. If the memo gives a lump sum of money owed and did not distribute charges, this may be a defense to the lien.

BUT - VA law allows for a blanket lien when there is a single contract for the entire work performed

(2) release of one lot defense

A creditor who releases the lien on one lot is estopped from enforcing the lien against the remaining lots

(3) SOL

(4) poor workmanship

Question 4

what property is subject to lien

Answer 4

payment for work performed on behalf of owners of real property (no lessees)

NOT public buildings

YES churches

Question 5

how to enforce mechanic’s lien

Answer 5

(1) creditors suit in equity brought within 6 months from time of memorandum or within 60 days of the time the work ended, whichever is later

Question 6

priority

Answer 6

(1) WHEN LIEN IS EFFECTIVE - mechanic’s lien commences at time work on the project commences

PRIORITY OVER OTHER TYPES OF LIENS -
Mechanic’s liens takes precedence over all other liens – but only in the building . Other liens perfected prior to the mechanic’s liens may take priority if it was a lien for the value of the land

PRIORITY OVER OTHER MECHANIC’S LIENS:
(1) sub contractor > general contractor
(2) sub sub contractor > sub contractor
(3) manual laborers > material men