LienLawsstatesummary.docx

LienLawsstatesummary.docx

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LienLawsstatesummary

U.S.LIENLAWS

Introduction

Mechanic’sLien:

Definition

Amechanic’sorconstructionlienisastatutoryliencreatedinfavorofcontractors,laborersandmaterialmenwhohaveperformedworkorfurnishedmaterialsintheconstructionorrepairofabuildingorotherrealproperty.Thelienattachestotherealpropertyimprovedbythelaborand/ormaterial.Thelienhastheeffectofencumberingtheproperty,therebyinsuringpaymentforthelienholder’sservices,materialsorequipment.Manystatesspecificallymentionengineersanddesignprofessionalsasbeingcoveredbymechanic’sliens.Othersdonotmentionthematall.Inthissummarywhendesignprofessionalsarementionedascoveredbystatelawitisnoted.Ifitisnotnoteditdoesnotnecessarilymeantheyarenotcoveredbutyoushouldcontactlocalcounselforthatinformation.

“Perfecting”alien

Itmeanstosatisfyorcompleteeachoftheprescribedstepsalienholdermusttakeinordertoestablishalegallyenforceablelienonthepropertyofanother.Thecourtsconsideramechanic’slientobeaprivilegeandnotaright.Youreceiveitsbenefitsonlyifyoustrictlyadheretothestatelawrequirements.

Preliennotice

Manystatesrequiresomekindofnoticebeforealiencanbefiled.Forpurposesofthispaperitisreferredtoasapreliennoticealthoughthenamevariesfromstatetostate.Manystatesrequiresuchanoticeatthebeginningofaprojectsoownersandcontractorsknowexactlywhoisonthesiteandtheextentofpotentialclaims.

Apreliennoticealthoughoptionalinmanystatesisrecommendedforanumberofreasons.Manyownersdonotknowtheexistenceofsubs,sub-subs,andsuppliers.Iftheownerknowsofyourexistence,thereisabetterchanceofyourbeingpaid.Evenmoreimportantly,theownermightwellpayyoudirectlytomakesuretherearenoliens.Especiallyifheorsheknowsyouareunpaidandcouldbefilingalien.Theownercouldalsomakeoutjointcheckstoyouandthegeneralorotherwiseinsistonproofthatyouhavebeenpaidbeforemakingpaymenttothegeneral.Finally,theownermayinsistofproofyouhavebeenpaidpursuanttoeitheraPartialorFinalLienWaiverthatyouareaskedtosign

DISCLAIMER

Theinformationinthispaperisintendedforreferenceonly.Itdoesnotportendtobelegaladvicebutonlyastartingpointforgatheringthefullamountofinformationneeded.Itisnotasubstitutefortheadviceofanattorney.Althougheveryefforthasbeenmadetoassureitsaccuracy,CandACECmakesnowarranties,expressorimplied,orrepresentationsastotheaccuracyofcontentonthiswebsite.Pleasereportanyknownchangesordiscrepanciestoebajer@acec.org.

SummaryofStateLienLaws

ALABAMA

Contractorsorsubswhodonothaveadirectcontractwiththeownermustfileapreliennoticebeforetheycanfilealien.Thereisnotimedeadlinewhenthepreliennoticemustbefiledotherthanbeforealienisfiled.Alienfiledbyoriginalcontractorsmustbewithinsixmonthsafterthelastitemofworkhasbeenfurnished.Otherpartieshavefourmonths.Engineersarecoveredbymechanic’slienlawsbutconstructionmusthavestarted.Areleaseofalienisbythestatuteoflimitationorthroughacknowledgementofpaymentinfull.ThereisnolawinAlabamawhereapartycoulduseabondtoreleasealien.AlabamaCode35-11.

ALASKA

Apreliennoticeisnotrequiredbutrecommendedtomakeenforcementeasier.Aliencanbefiledbyanypersonwhofurnishesservicesfortheimprovementofrealpropertyattherequestofanowner.Engineersarecoveredeventhoughactualworkmaynothavebegun.Iftheownerhasfiledanoticeofcompletiontheclaimanthas15daystofile.Thenoticeofcompletionputspotentialclaimantsonnoticethatthetimetofileisrunning.Iftheownerhasnotfiledanoticeofcompletiontheclaimanthas90daysafterthecompletionoftheconstructioncontractor90daysaftertheclaimanthasceasedtofurnishservices.Apropertycannotbeboundbylienformorethansixmonthsunlesslegalactionhascommenced.Abondcanbeusedtoreleasealien.AlaskaStatutes34.35.

ARIZONA

Unlikemanystates,Arizonarequiresallclaimants–contractorsorsubs-tofileapreliennoticenolaterthan20dayscommencingservices.Anypersonwhofurnishesprofessionalservicesshallhavealienonthebuilding,structureorimprovementwhethertheworkwasdoneattheinstanceoftheownerorhisagent.Contractors,engineersandarchitectsareconsideredareconsideredagentsforpurposesofArizonalaw.Thepotentialclaimantmustgivea“preliminary20daynotice”priortotherecordingofamechanic’slien.Thenoticeshallbegivennolaterthan20daysaftertheclaimanthasfirstfurnishedprofessionalservices.Apaymentbondcanbeinlieuofalienright.ArizonaRevisedStatute