When it comes to filing your Mechanic’s Lien, it’s important to go through the process with little to no hiccups for all parties involved. Not only for the sake of meeting deadlines but also because those who review the documents are going through it with a fine-tooth comb, diligently looking for any mistakes you’ve made along the way. Arming yourself with information on what to avoid when it comes to mechanic’s liens is crucial so you don’t invalidate your lien rights. Here are some things to consider:
Do you fully understand your lien rights?
Before you start any project, make sure you know exactly what your state requirements are to ensure your lien rights. There are several factors to consider, including if you need a valid contractor’s license, notice requirements and how they are served, and doing it all within the strict time frames set by each state.
Are there any incorrect forms with missing or inaccurate information?
Accurate property descriptions are essential, and this means more than just getting the address right. If you are unsure of an exact address, provide a parcel number or use an aerial map, to provide a visual of the property being improved. Ensure that all other information provided is accurate.
Are you filing on time?
Liens must be filed before their deadline, otherwise you’ll lose lien rights. Refer to state statutes to know those deadlines or consult your legal counsel.
Did you send a prelien?
In many states, contractors may be required to send a preliminary notice, notice to owners or notice to general contractors, notifying relevant parties of their involvement on the job. Some states have Intent to Lien requirements before filing a lien.
Are you using the true facts or others opinions?
It’s important to note that lien laws differ state to state, so be sure you are not working off what you “heard from another contractor,” who may be working under different state law.
Never go at it alone!
There’s no shortage of red tape in the lien filing process. A professional lien services firm can help you avoid these mistakes. The smartest move a contractor can make is to not go at it alone.