Mechanics Liens

Mechanics liens are essential documents that construction industries use in their projects. With so many expenses and bills to settle, a mechanics lien document will help ensure that payment is guaranteed.

Mechanics Lien Definition & Meaning

A mechanics lien is an agreement concerning the payment between the property owner and those involved with the construction process.

The document is meant to hold on to the property or to serve as a legal claim filed by an unpaid contractor, subcontractor, supplier and other entities involved in the construction and improvement of the property.

What Is a Mechanics Lien

It is vital that construction companies and other entities involved in the construction and improvement of a property are paid for their services and the material supplied. It is rather common to see delays or unpaid bills when it comes to property improvement, hence a mechanics lien is created. This legal document is used to seek compensation for the work done around the property, if left unpaid the property will be legally confiscated.

10 Types of Mechanics Lien

Wisconsin Mechanics Lien

A Wisconsin mechanics lien is a legal document that provides contractors, mechanics, and other entities a right to create a payment remedy. It should be duly noted that there is a deadline to file this document. And this should be within 6 months of the last date labor or materials were furnished.

Generic Mechanics Lien

If there is a need for you to prepare a mechanics lien from scratch, then start with a generic mechanics lien document. Make sure you’ve done your research such as determining the exact content of the document, the legalities and other details pertaining to the construction project. It should be noted as well that the property owner is aware of this document you are about to serve.

Ohio Mechanics Lien

In the state of Ohio, a contractor or subcontractor can file an Ohio mechanics lien if left unpaid. This document provides the claimant with a security interest on the property they have worked on. The claimant should also be aware that there is a deadline to file a mechanics lien which depends on the building and type of project.

Tennessee Mechanics Lien

In the state of Tennessee, USA, filing a mechanics lien has its own set of requirements. For instance, for a Tennessee mechanics lien to be valid it must be recorded in the office of the county where the job is physically located. Also, it’s important to have the document notarized.

Pennsylvania Mechanics Lien

Whenever filing a Pennsylvania mechanics lien it should be noted that the document is valid for two years, however, the property owner has the option to file a written extension. And for its c, a period of 6 months is given from the claimant’s last date of furnishing of the project. This is a strictly enforced deadline.

Oklahoma Mechanics Lien

An Oklahoma mechanics lien is filed by a construction company and any other project participant of the project in the state of Oklahoma. This document is applicable to all sorts of construction projects such as commercial, residential and public property. It is also allowed on oil wells, gas wells, mining property and railroads.

Virginia Mechanics Lien

The state of Virginia also allows construction workers, engineers and other entities involved to file a Virginia mechanics lien to secure payment. This should be filed and recorded in the land records office of the county where the project is currently located. To complete this document certain information must be accurately included such as the name and address of the owner and claimant, the type of materials/services furnished to the project, the amount claimed, and a brief description and location of the property.

Utah Mechanics Lien

Utah also allows its contractor and suppliers to create a Utah mechanics lien to ensure payment is made for the labor and materials provided on a project. Like most requirements, this document should be filed in the county recorder’s office where the project is located. A pre-construction lien is also available in Utah for specific services provided by a construction company.

Nebraska Mechanics Lien

Nebraska has also its own rules when it comes to mechanics liens. For instance, to file a Nebraska mechanics lien the set deadline should be 120 days from the last day on which materials and labor were provided by entities involved with the project. And this should be received by the county Register of Deeds office where the project is physically located.

Idaho Mechanics Lien

Idaho registered construction companies, suppliers, contractors and those involved in a property repair and renovation have the right to file for an Idaho mechanics lien. In this state, the given deadline is set at 90 days. Oral or written contracts are allowed if there is documentation to show the existence of an agreement or that work has been provided the on the property.

Mechanics Lien Uses, Purpose, Importance

Construction projects can be very costly and would sometimes take several years to complete. So it is only natural that construction companies, suppliers and laborers would want something that would ensure that they are paid for the materials and services they have provided. In this case, a mechanics lien is a useful document that would guarantee payment and would usually appear on property records.

A Form of Compensation or Insurance

One of the most common problems in construction projects, whether for improving a building’s foundation or creating an entirely new building is that those who are involved are not paid on time. Therefore a mechanics lien is created which is a form of compensation or insurance to make sure that the property’s owner would pay what is due. Also, a specific deadline is often set for when litigation will start if the payment has not been received by the claimant.

Legal Right On The Property

A mechanics lien also gives the claimant a legal right to the property if the claimant is left unpaid. So whenever the owner files for bankruptcy or in any way cannot pay it is dictated by the law that the owner has to give up their property. Therefore the property can be sold in order to pay the claimant.

Mechanics Lien Differ Per State

It should be noted that although generally, the intent of a mechanics lien guarantee’s its claimant payment, its rules may differ per state. Thus it is essential for those who need to file a mechanics lien to check on the deadline, requirements and other relevant information. This is to make sure there are no discrepancies during the entire processing.

Powerful Tool

If properly prepared, a mechanics lien is a powerful tool for lienholders. Depending on the state or city, some would award mandatory attorney’s fees for mechanic’s lien claims. Or this document could be used as foreclosure against a property.

A Number of Beneficiaries

A mechanics lien is not only used for those directly involved with the project like the contractors, sub-contractors and laborers. Even suppliers benefit from a mechanics lien. However, this is only applicable in certain states, so it’s best to double-check on its requirements and eligibility beforehand.

What’s in a Mechanics Lien? Parts?

Address

The uppermost section of the document must contain the address or state to which the document has been filed. This must be written down correctly.

Parties Involved

The main body of the document must include the names of the parties involved and this would be the claimant and the owner of the property. The address and contact information must be written down as well.

Details of the Services/Materials Provided

It should be noted on the document the list of services and materials provided by the claimant. This should be comprehensively written down.

Description of the Property

Another crucial piece of information needed is the description of the property and its location. And the construction that has been done to the property.

Construction Dates

The construction dates must be provided on the document. The first and last day of construction should be included respectively.

Signatures

Signatures must be duly included on the document or it won’t be valid. And this should take place in the presence of a notary public.

How to Design a Mechanics Lien

1. Choose a Mechanics Lien Size.

2. Decide on the purpose of the mechanic’s lien document.

3. Select a Mechanics Lien Template.

4. Customize the template and add all the necessary information.

5. Add a logo, if applicable.

6. Finalize and download.

Mechanics Lien vs. Notice

A mechanics lien is a legal document that guarantees lienholder payment on a construction project, usually, the property is used as insurance.

A notice on the other hand is a document that announces a particular subject, that gives instruction or information or it can be a warning of some sort.

What’s the Difference Between Mechanics Lien, Waiver, and Credit?

A mechanics lien is a document filed by entities who are involved in a construction project as a means to guarantee the services and materials provided.

A waiver is a written agreement that intentionally relinquishes a legal right or claim to a particular subject matter.

A credit or finance document is actually a set of documents that an obligor owes financial obligations to a lender or other similar parties.

Mechanics Lien Sizes

A mechanics lien is a legal document that contains a handful of important information which may come in a form or letter format. That being said, there are several mechanics lien sizes that work well for this type of document.

Mechanics Lien Ideas & Examples

Each state has its own set of rules and regulations when one has to file for a mechanics lien. Thus, there are several kinds of mechanics lien ideas and examples that will give you a clear understanding of how to properly use this kind of document.

• Montana Mechanics Lien Ideas and Examples
• Louisiana Mechanics Lien Ideas and Examples
• Arkansas Mechanics Lien Ideas and Examples
• Missouri Mechanics Lien Ideas and Examples
• Colorado Mechanics Lien Ideas and Examples
• Hawaii Mechanics Lien Ideas and Examples
• Iowa Mechanics Lien Ideas and Examples
• Kansas Mechanics Lien Ideas and Examples
• Nevada Mechanics Lien Ideas and Examples
• Illinois Mechanics Lien Ideas and Examples

FAQs

More in Documents