Mechanics' and Materialmens' Liens on Real Property

Question 1

What is a mechanic for the purpose of this lien?

Answer 1

1. Those who build, improve, or repair buildings, or do any kind of work to repair or alter personal property.
2. Also includes those who supply materials (sometimes referred to as a Materialmen’s lien).

Question 2

A mechanics’ lien in real property may by asserted by a…

Answer 2

general contractor, subcontractor, or sub-subcontractor. Subcontractor and sub-subcontractor may assert lien against the property for money owed to them by the general contractor.

Question 3

The mechanics’ lien arises by statute and is asserted by…

Answer 3

Filing a memorandum of lien in the clerk of court’s office where the real estate is located within 90 days of completion/end of work.

Question 4

What must a memorandum of lien have?

Answer 4

1. Names and addresses of property owner and claimand
2. Amount of verified claim (and when payment is due)
3. Intent to claim a lien
4. Description of the property
5. Date from which interest is claimed
   Claimant’s license number

Question 5

The memorandum must be mailed to…

Answer 5

the owner of the property, regardless of whether the lienholder is a general contractor, subcontractor, or sub-subcontractor.

Question 6

You can only file a mechanics’ lien to secure payment for work performed at the ______ request.

Answer 6

owner’s; not lessee’s

Question 7

No mechanics’ liens are allowed on…

Answer 7

Public buildings. Includes public universities. Doesn’t include churches.

Question 8

The mechanic must bring suit in…

Answer 8

6 months or within 60 days of end of work, whichever is later.

Question 9

What is the priority distribution for mechanics’ liens in real property?

Answer 9

First in time, first in right for mechanics’ liens. Look to the date of obtaining the lien not to the date of the work.

Question 10

What are the exceptions to the priority rules for mechanics’ liens?

Answer 10

1. Liens based on labor have priority over liens based on materials.
2. Subcontractors have priority over general contractors.

Question 11

Mechanics’ liens (are/are not) given priority over liens in real estate.

Answer 11

are not

Question 12

But, Mechanics’ liens have priority over earlier liens if …

Answer 12

the mechanics’ lien secures improvements made prior to the earlier lien.