File a Mechanic’s Lien: Best Practices
So, have you finished a construction project and are yet to receive your pay for the work? Do you think that the owner of the project may start acting up a bit when it is time to pay for your work? In that case, a mechanic’s lien will be the best bet for you. When it comes to unpaid dues towards a completed construction job, filing a mechanic’s lien can prove to be a highly effective way of getting proper attention to your dues and also to protect yourself against getting stiffed on the job.
It is important for you to know that the entire process of the mechanic’s lien can be rather confusing. However, if you try and do some research on the BICA mechanic’s lien services, it may seem much simpler to you than otherwise. It will not be wrong if you say that the entire process is rather technical and legal. If you make even the slightest mistake in the mechanic’s lien process, it can easily invalidate the payment claim that you make. Thus, the primary focus should be in the details and the laws pertaining to mechanic’s lien in different states.
Steps in Filing a Mechanic’s Lien
Here are the steps in filing a mechanic’s lien
- Right to File a Lien: First of all, it is very important for you to find out whether you have the proper rights to file such a lien. If you file a mechanic’s lien and later find out that you do not have the rights to do so, it may give rise to a rather expensive legal mess for you. Is it possible for the materials and type of work that you supply to be protected by a lien in your state? Was it required for you and did you send a notice? Are you still within your lien deadline? These are some of the questions to answer in order to determine if you have the right to file a mechanic’s lien.
- Draft The Mechanic’s Lien: Once you have successfully determined if you have the right to file a lien, the next step in the process is to produce proper lien documents. This basically means drafting the mechanic’s lien form that needs to be filed. In other words, this is basically your lien claim.
- File it with the Recorder’s Office: So, have you successfully filed the mechanic’s lien form? Now, it is important for you to get it filed properly. It is important for all liens to be filed in the same county where the project is located. You may either file it in person or simply mail the lien claim or even file the lien electronically.
- Notify the Parties: Once the lien claim is filed or even while filing the claim, it is important for you to send out copies of the lien to the different parties that are involved on the job and also affected by the lien.
- Release, Extend or Enforce the Lien: This step is only needed if you do not get paid by the end of the fourth step. You may either extend or enforce or even release the lien depending upon the outcome of the situation.