Mechanics' Liens

Question 1

Mechanics’ Liens

Answer 1

Lien that provides interest in piece of real property that the “mechanic” has added value to by supplying its own labor or materials

Question 2

Who is a Mechanic?

Answer 2

Anyone who performs labor or furnishes materials or machinery for improvement to real property

Question 3

Scope of Mechanic’s Lien

Answer 3

Lien attaches to the ENTIRE real property

Including building and land

Question 4

Perfection of Mechanic’s Lien: Sworn Statement and Notice of Intent

Answer 4

Must file SWORN STATEMENT and NOTICE OF INTENT to assert claim to mechanic’s lien

Question 5

Perfection of Mechanic’s Lien: Filing

Answer 5

Sworn Statement and Notice of Intent must be filed:

(1) Within 60 days after work on a house; or
(2) Within 90 days after work on all other real property

Question 6

Perfection of Mechanic’s Lien: Relation Back

Answer 6

Date of the recorded lien relates back to when mechanic began to perform labor or furnish the materials or machinery

Question 7

Mechanic’s Lien Priority in General

Answer 7

Priority over a lien created AFTER it

Subordinate to liens created BEFORE it

Question 8

Priority: Multiple Mechanics’ Liens on Same Property

Answer 8

All mechanics’ liens on particular real estate have the SAME PRIORITY

Question 9

Priority: Mortgage Lenders

Answer 9

Mortgage lenders have priority over a mechanic’s lien created after date the mortgage is recorded

EXCEPTIONS:

(1) Single or double dwelling homes
(2) Utility properties

Question 10

Enforcement of Mechanic’s Lien

Answer 10

Party holding the mechanic’s lien must file a complaint in the state court of the county where the real property is located

Complaint to enforce the mechanic’s lien generally must be filed within 1 year after lien recorded

Question 11

Termination of Mechanic’s Lien

Answer 11

If not enforced within 1 year, mechanic’s lien is VOID