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Benefits of a Mechanics Lien

A Mechanics lien can be a powerful and legal solution for contractors to receive payment for services or materials supplied to a project. However, the requirements for filing a mechanics lien can be complicated, with each state having their own unique set of rules. Let’s look into what a mechanics lien is and how it can benefit you.

What is a Mechanics Lien? 

A mechanic’s lien is a legal document that allows the filer to seek unpaid compensation. When a contractor, subcontractor, or supplier hasn’t received any payment for the work they’ve done in a project, this is an option that they can pursue to ensure they get paid.

It’s important to note that mechanic’s liens are state-specific. What may qualify you to apply for a lien in your state, may not work in another state. There are also specific time limitations for when a lien can be filed, and in some states, this time limitation may vary from public and private property. 

Depending on what state you live in, you may even be required to send a ‘Preliminary Notice’ at the beginning of a project so that you have lien right protection.

For a full list of mechanic lien requirements by state, go here.

Benefits of a Mechanics Lien

Filing for a mechanic’s lien has many benefits to you and your company that will help ensure that you get paid for your work.

  • By filing a mechanic’s lien, you’ll be able to file a suit against the property owner, the land and the general contractor; not just the subcontractor or general contractor. This means you’ll have a better chance of your claim being paid.
  • A mechanic’s lien puts pressure on the owner and general contractor to get the lien paid for, that way the owner can maintain a clear security interest in the property.
  • If the debtor is unable to pay or files bankruptcy, the mechanic’s lien gives the claimant legal right to collect from the real estate. The property can be sold to pay your claim.
  • A mechanics lien sets a specific deadline for when litigation will start if payment has not been received.
  • A lien can initiate a breach in contract. All parties involved in the project have a duty to keep the property free and clear from liens. The breaching party will have the obligation to rectify the situation.
  • Mechanics liens are difficult to challenge if filed properly.
  • Filing a mechanics lien elevates your collection effort and demonstrates to all parties that you are serious.

If you’re looking to get paid, don’t waste anymore time and file your mechanic’s lien today. With Construction Disputes, we’ll be able to put all of the necessary paperwork in one place and help start your process.

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