How to get what you're owed, with Mechanic’s lien?

If you’re in the construction industry, especially if you’re a small business contractor, then you should be familiar with a debt collection tool known as the Mechanic’s lien.  If you use this tool properly, you can be assured that you will get paid for your work.

What is a Mechanic’s lien?

If you’re an unpaid contractor, subcontractor, laborer, or material supplier, you can file a Mechanic’s lien to seize the property where you worked. If you’re still unpaid after creating it, the land held under the lien can be sold off to compensate for what you're owed.

How to file a Mechanic’s lien?

The process of creating a mechanic’s lien commences by filing a “Notice of Contract” in the Registry of Deeds where the property is located and giving notice to the owner of the property. You usually need to have a written contract in order to have a mechanic’s lien. Also, you need to be working on private property, as you cannot put a mechanic’s lien on federal, state, county or municipal land.

The process of filing a mechanic’s lien can seem daunting with all of its complexities and nuisances. Unless the amount involved is very small, it’s recommendable that you hire an attorney to file your Statement of Account.

It’s not tough, but it’s very easy to make an error and lose your lien rights. Professional attorneys have the adequate knowledge of all the laws and ordinances surrounding the subject and they also specialize in judgment enforcement, ensuring that you are paid for all the work you’ve done.

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Created on Nov 10th 2017 07:45. Viewed 416 times.

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