what type of attorney is most familiar with mechanic liens?

What is another name for a mechanics lien?

Which of the following would be entitled to a mechanic's lien?

How do I fight a mechanic's lien in California?

Who can record a mechanics lien in California?

What type of liens typically takes priority over all other prior liens?

Which of the following liens usually would be given highest priority?

How long does a mechanics lien last in California?

How long does a lien stay on your property in California?

How long does it take to remove a lien from property?

When can a mechanics lien be filed in California?

How much does it cost to file a mechanics lien in California?

Can you file a mechanics lien without a preliminary notice in California?

Why are liens important?

On the one hand, liens can be an effective tool to ensure payment when due; on the other, they can be strategically used to create issues that are expensive to resolve, potentially causing project delay and increased project costs. Timely and cost effective resolution of lien disputes is critical to keep projects on budget and on schedule. ...

Can you litigate a mechanic's lien?

Sometimes, litigation is the only way to resolve lien disputes. Our attorneys have litigated mechanic’s lien cases across the country and are familiar with the nuances that exist from state to state, such as issues involving lien priority, broken priority, multiple lien claimants, equitable subrogation, lien release and waiver, discharge bonds, payment bonds, stop notices, prompt pay penalties, and other equitable remedies when mechanic’s liens are not available.

What is a mechanic's lien?

Mechanic’s and materialmen’s liens (mechanic’s liens) ensure that those who labor, supply materials, or provide professional services on a construction project are paid for such work. If the lien is not paid, the mechanic’s lien holder may sell the property that is subject to such lien to collect payment.

How to avoid mechanics liens?

If done properly, a payment bond prevents any mechanic’s liens from being filed upon a property by allowing the parties who otherwise could file liens to pursue claims against this payment bond.

How to determine if a mechanic's lien is valid in Arizona?

To determine whether a mechanic’s lien is valid in Arizona, homeowners should first determine whether a few basic mechanic’s lien timing requirements were met. The following three deadlines are just a few of the many rules that must be followed for a mechanic’s lien to be valid.

How long does it take to file a mechanic's lien?

Prior to liening the property, the lien holder must first provide the property owner with a notice that the party is supplying labor, services, and/or materials to the job site, within 20 days of commencing such service. If a contractor fails to supply the property owner with a preliminary 20-day notice, that contractor is not permitted to file a mechanic’s lien. This rule is strictly enforced; the mailing of a preliminary 20-day notice is required to lien any property. Failure to do so makes any mechanic’s lien invalid.

Can a mechanic's lien be removed in Arizona?

It is recommended that a homeowner consult with a licensed Arizona real estate attorney who is familiar with mechanic’s liens before paying the lien or allowing the property to be foreclosed. Many mechanic’s liens are invalid and must be removed.

Can you sell a property with a mechanic's lien?

Fortunately for homeowners , it is not easy to sell property subject to a mechanic’s lien. The mechanic’s lien holder must file a lawsuit and receive a court order permitting the foreclosure. Additionally, mechanic’s liens must conform to many specific requirements regarding the form, content, and timing of mechanic’s liens. Mechanic’s liens are often invalid for failing to follow these requirements.

Can a mechanic's lien be wiped out?

Ownership to property subject to a mechanic’s lien is uncertain. The property can be sold, and other loans against the property potentially could be wiped out. To avoid this potential loan loss, banks almost never lend money on a property subject to a mechanic’s lien. Mechanic’s liens effectively prevent any sale, refinance, or mortgage of the subject property.

Who handles mechanics lien claims?

The foreclosure process must be handled by an attorney if the lien claimant is a corporation or similar business entity. It is once again important to use the services of a knowledgeable attorney with prior experience in handling mechanic’s lien claim actions in the foreclosure stage of the lien claim process.

What happens if a mechanic's lien does not perform early work?

Thus, even if a mechanic’s lien claimant did not perform early work on a project, that claimant’s work will be assigned a uniform priority date identical to the earliest work done by the mechanic’s lien claimant that performed the earliest work.

What is mechanic lien in Colorado?

§ 38-22-127, is a provision of the Colorado mechanic’s lien statute that presents both special problems for general contractors and special opportunities for subcontractors and material suppliers. It requires that when general contractors are paid for the work of subcontractors or for the materials supplied by others, the general contractor is required to hold the money “in trust” for the subcontractor or supplier. Any failure to pay money that is owed to the subcontractor or supplier under this “trust” requirement will create potential liability to the subcontractor or supplier on the part of the general contractor for up to triple damages and attorney’s fees for intentional non-payment to the subcontractor or supplier.

How long to wait to file a lien?

After the Notice of Intent to File a Lien is served on both the property owner and the general contractor, the claiming party must wait for at least ten days before recording the notice in the land records for the county in which the property is located. This recording process must also be completed within the four months after the last substantial work on the project by the subcontractor/material supplier. If the lienable property is located in multiple counties, the recording should take place in all counties where the land is located. Care must be taken not to record the lien claim notice (s) before the expiration of the ten day period provided in the statute. During this ten-day time period it is good practice to directly contact the parties served with the notice to attempt resolution of the claims. Once the notice has been recorded, it serves as public notice of the pending claim.

What is the interest rate on a mechanic's lien?

Unless the original contract provides for a different amount, the lien bears interest at the rate of 12% simple interest, and it is possible to obtain an award of court costs. It is unusual to be awarded attorney’s fees, unless the claim is made under the Mechanic’s Lien Trust Fund provisions of the statute (discussed below).

How long does it take to file a notice of intent to file a lien?

For this reason it is the best practice to file the Notice of Intent to File a Lien within sixty days after the last substantial work was done, in order to make sure that time requirements are easily satisfied without creating potential procedural compliance issues.

Do mechanics lien claims have the same priority date?

All mechanic’s lien claims are given the same lien priority date, and it will be the first date that any mechanic’s lien claimant performed any work on the subject property that could give rise to a lien claim. Thus, even if a mechanic’s lien claimant did not perform early work on a project, that claimant’s work will be assigned a uniform priority date identical to the earliest work done by the mechanic’s lien claimant that performed the earliest work.

1. Paying Twice for a Project

For a mechanic lien’s attorney, it is a priority to make sure there are proper procedures in place throughout the entire construction process, which include a convenient and well documented payment schedule for all parties involved.

4. Losing the Interest on Your Own Property

Once a mechanic lien is recorded against your property interests, if the mechanic’s lien is not removed it could cause a cloud on your title to the property and if left unchecked, could cause the owner of the property to lose his/her ownership interest in the property.

What is mechanic lien?

Any lien is usually a form of loan or type of legal holding or claim on a property that could be used for various items. Mechanic’s liens are most often used by subcontractors, suppliers and similar persons when there is a need for a remodel or to improve the property.

How to keep a mechanic's lien off a home?

One option open to the person that owns or leases the home is to pay the subcontractor and contractor or construction agency through joint checks with the names of each needed to acquire the funds. This may include the supplier as well. This forces the parties to cash the check by both persons endorsing it so that subcontractors or suppliers are paid. Another similar possibility is a lien waiver that is signed by each party involved in the renovations or remodeling. This would make sure no further payments are necessary to complete work, provide items and similar concerns. However, it is best to be aware of laws in different states that do not permit this for mechanic’s liens unless the payment for services has already been made.

Why do you need a lawyer for a home renovation?

By hiring a lawyer to assist with all these proceedings, it may be possible to avoid or evade complications . He or she may give advice about what option to pursue or have the homeowner pay each party himself or herself to ensure each party has been given payment for items, services and the project.

Can a subcontractor sue a mechanic?

However, it is presumed that the homeowner may sue the general contractor that caused the situation initially. This may provide a resolution, but this only complicates the matter. These concerns take time, money and energy. This means that the owner of the property must seek additional legal action in order to obtain a remedy for a situation he or she did not cause. Garnishing the wages of the general contractor takes more time, and trying to get him or her to pay the subcontractor to release the lien could be equally difficult. Because there is only so much time to pay the supplier, this makes a mechanic’s lien both inconvenient and complicated to resolve when the money has already been spent to satisfy what the supplier has already provided.

What Exactly Is A Mechanic's Lien?

How Elkus & Sisson, P.C. Can Help You in Your Mechanic's Lien Case

• Our law firm brings a team of civil litigation attorneysexperienced in real estate law, construction law, and specifically to the area of mechanic's liens. Our extensive litigation expertise in Colorado is helpful in these cases. We offer representation for both homeowners and contractors. Laws surrounding mechanics's liens are specific to individu...

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Legal Representation For Property Owners

Mechanic's Lien FAQ's

The Impact of A Mechanic’s Lien

The Options You Have For Removing A Mechanic’s Lien

• When faced with a mechanic’s lien placed upon their property, homeowners have three general options: 1. Pay the lien off in full; 2. Allow the mechanic’s lien holder to foreclose and sell the property; or 3. Contest the validity of the mechanic’s lien. It is recommended that a homeowner consult with a licensed Arizona real estate attorneywho is fam...

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Overview of Mechanic’s Lien Law

Special Protection For Homeowners — “Owner Occupied Dwelling”

Other Available Protections Against A Mechanic’s Lien