How to Do a Mechanic's Lien

Building a home involves more than simply hiring an architect and a construction company. Before any construction can start, mechanic's liens must be completed and filed. A mechanic's lien is a guarantee that the construction workers and contractors will be paid before anyone else in the event of liquidation. These liens are necessary to perform work, and they remain in force until the workers and contractors have been paid.

Instructions

1

Prepare a fair notice document detailing the contributions to be made. These contributions can be either services or materials. Most state laws stipulate that fair notice must be given to the property owner of the contributions to be made before a lien can be filed. Deliver the notice to the property owner within 20 to 30 days after the date the materials or services were first contributed to the property.

2

File a claim of mechanic's lien at the county recorder's office. This is essential if the owner has not paid after the materials are delivered or work has begun. This step sets the lien process in motion. A 60-day limit, starting the day the claim is filed, goes into effect. Within those 60 days, the payment problem must be worked out or a legal action is filed against the owner in the county courthouse.

3

File a lawsuit against the property owner within the 60-day deadline. Alternatively, file legal proceedings against the property within the deadline. The third option is to file suit against the owner and proceed against the property simultaneously. Either option can ultimately result in the property being sold at auction. Whichever enforcement action is filed, it must be done within the 60-day deadline or the lien becomes null and void. The majority of mechanic's liens fail to include an enforcement action within this deadline, so be sure to do so to recover the promised payment.