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Construction Liens

What is a Construction Lien?

A Construction Lien, also known as a Mechanic's Lien, is one of the most powerful collection tools in our industry. Anyone who has worked on a construction project, made improvements to real property and has not been paid for their materials, services, and/or labor should consider filing a lien in the event of non-payment. Some states require that you send a preliminary notice and/or intent to lien within a specific period of time before you file your lien. Make sure that you read your states requirements.

File a Mechanic's Lien
Mechanics Lien ensures your payment
Secures your equity interest in the property.
Mechanics Lien sets a cut off date for payment
Lenders will stop funding the project.
Mechanics Lien gives you upper hand in the negotiation
Prevents the sale of the property.
Mechanics Lien Register in the permanent records of the property
Recorded in the official records.

What are the requirements to file a Construction Lien aka Mechanic's Lien in your state?

All 50 states have lien laws. But every state has different requirements and deadlines to file the lien. Some states require a Preliminary Notice and/or an Intent to Lien before filing a Mechanic's Lien. Check the map below to find more information about your state's Mechanic's Lien requirements.

Ultimate guide to mechanics lien by SunRay
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The Ultimate National Guide to Mechanics Lien. 
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Download Mechanics Lien Playbook
Send your Preliminary Notice
There is a statutory notice for both private projects and public projects.
There is a statutory notice for private projects only.
No notice required, but it's recommended to serve a non-statutory notice.

Steps to File a Mechanics Lien

Send:
Preliminary Notice
Send:Demand Letter
Send:
Intent to Lien
Take Control:
File Mechanic's Lien
Once you get paid:
File your Satisfaction

Send Preliminary Notice.

It is a pre-requisite in the majority of the states.
A Preliminary Notice is a construction notice that subcontractors, equipment lessors, and material suppliers must send at the start of a construction job in order to secure their lien and/or bond claim rights.

While a Preliminary Notice is not required for every state it's highly
recommended.
Send a Preliminary Notice

Send Demand Letter.

A demand letter can be a very effective tool in getting paid.
It informs your customer and other parties involved that payment is past due which may result in a more serious action if payment is not received.
Send your Demand Letter

Send your intent to lien.

Intent to lien is a mandatory document in some states before filing a lien.
In some states, a Notice of Intent is a legal requirement before you can file a Mechanics Lien. It warns that you will lien the project if payment is not received within a certain number of days.
Send Intent to Lien

File Your Lien.

Take control of your payments. Ensure cashflow for your projects.
If you lien a property, the property cannot be sold. This is because your lien clouds the title of the property.

If there is a lender, the lien can stop the funding to the project.

The lien informs all required parties that you are working on the project and have not been paid.
File Mechanic's Lien

File your satisfaction.

Once you are paid in full, file your satisfaction of lien.
A Satisfaction of Lien is recorded in the public records where your lien was recorded and is the final step once you have been paid.
File your Satisfaction of Lien
Get Paid
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Mechanic's Lien FAQs

Frequently asked questions on Mechanic's Lien or Construction Lien

How long does a mechanic's lien last in Florida?

If you have not been paid, a Florida mechanics lien must be enforced through a lien foreclosure action within 1 year from the date on which the lien was recorded. If no action is taken within the one-year timeframe, then the lien claim will expire and no longer be enforceable.

What is a construction lien?

A construction lien or mechanic’s lien protects contractors, subcontractors and suppliers from non-payment if they have provided labor or materials to a construction project.

How to file a construction lien?

Here are the steps involved in filing a construction lien:

  • Send a Notice to Owner (NTO): If you don’t have a direct contract with the property owner, send an NTO within the specified deadlines to preserve your right to file a lien.
  • Prepare the Lien Document: Use the correct form for the lien, ensuring it meets Florida’s legal requirements. Obtain the form as per Florida Statute 713.08.
  • Determine the Last Day on the Job: You have 90 days from the last day you provided labor or materials to record the lien. Aim to file within 60 days for timely recording.
  • Choose the Correct County for Recording: Record the lien in the county where the work was performed, such as Miami-Dade County for work done in Miami Beach.
  • Mail the Lien: Send the recorded lien by certified mail to all relevant parties within 15 days of recording to avoid invalidation.

How does a construction lien work?

A construction lien is a claim filed against a property by a contractor or subcontractor who has not received payment for their work. These liens are intended to safeguard professionals against the risk of non-payment for their services.

How to put a construction lien on a house?

A construction lien is usually filed with the county clerk where the project is located. While paperwork and filing requirements vary by state, they generally involve detailing the work performed, specifying the unpaid amounts, and attaching copies of contracts and any required notices.

What’s the difference between construction liens and mechanic’s liens?

Construction liens and mechanic’s liens are the same. Both are legal claims made by contractors, subcontractors, or suppliers to get paid for their work or materials.

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