A mechanic’s lien, or a constructor lien, or a labour lien will provide a security to the payment for your services like labour, materials, equipments and other professionals Services. If you have any issues with the payment from the property owner, then you can claim for mechanics lien. The liens are attached to the land itself in public construction projects to restrict the project owners from selling or refinancing. State land and federal land projects have lien attached to the bond of the project. There are different requirements for claiming lien depending upon the project location. Filing a lien may require extraordinary details making it more complex
Consulting NLB lien specialist can also make your claiming procedure easier.
Here are some steps to file your mechanic’s lien.
Step 1:- Do You Have Legal Documents and Right to File a Lien? Knowing some following details can help file a lien.
1) Each state has some types of construction participants to file a liens and restrict others from filing, therefore it is important to know whether the state law will allow you to file a lien? In many states contractors, material suppliers, subcontractors have right to file a lien.
2) If preliminary notice is required to send and you didn’t, then you might lose your lien rights.
3) There is deadline to file a lien, which is usually tied to the completions of the project, so need to know your lien deadline before filing mechanic’s lien.
Step 2:- Draft a lien with care Lien are sometimes confusing and you must be careful while preparing your documents, you need to include all the information required to file a lien. Most states will ask for the legal property description. There are some issues like font, margin and paper size of the documents, if these are not standards, then you may have to pay extra cost for filing the lien or sometimes there may be a chance to lien rejection. You can consult the state recorder’s office to know any special filing requirements. You can go to a NLB lien specialist to get your work done easily with the documents and lien filing
Step 3:- File Your Lien the Specified recording office, where the property is located that you worked for. You need to record the lien in the recording office of particular region or state.
Step 4:- Send the Notice to the property owner. Most of the states will ask lien claimants to send the notice to the property owner and sometimes also to the construction lender if involved in the project.
Step 5:- Extend Your lien If your deadline to enforce your lien has come to end, then extend the deadline. This will require an attorney to file a suit to enforce the lien. Don’t let your claim expire. If you face difficulties in setting up your lien, then you may talk to NLB lien specialist. Some times extending the lien will also require the permission from the property owner.
If you have been paid and want to cancel or release the lien, usually property owners will ask for this after they pay the lien to the claimants. Therefore, to cancel or release you have to file a lien release in the same recorder office where you claimed for the lien.