Know all daetails about using this lien to your advantage
A mechanic’s lien is a legal tool that can be used by the contractors and subcontractors to collect any unsettled payments regarding products and services provided during the construction or up-gradation regarding a real estate project. A contractor or subcontractor can use this tool to realize their debts from the property owner.
There are a number of construction and renovation works that are eligible for mechanic’s liens. Some of these are a new construction project, remodeling (interiors and exteriors), air conditioning, masonry, roofing and flooring, ventilation and so on. The construction of additional features like fences and garages are also under the realm of this lien.
A mechanic’s lien is applicable only when the construction and renovation work done is worth 15% or more of the property value. If the amount of work done is equal to or more than 15% of the real estate’s market value then the contractor or subcontractor involved in the project can obtain a lien.
If you have supplied products or services in a construction or improvement project and are yet to get paid for it you may apply for a lien. There are statutory guidelines that regulate the issuance of a mechanic’s lien. You need to know the right method.
The first step is to provide the property owner a notice regarding your debts. This needs to be done within a period of 120 days from the date when the work was finished. After you have given the notice you need to submit a court petition within 60 days. The next steps involve a ‘Show Cause’ hearing, acquiring an Interlocutory or Temporary Mechanic’s Lien and to prove your point at the trial.
It is necessary to consult an attorney specializing in this field if you want to apply for such a lien. Only an expert is capable of presenting a case properly and thus making it work in your favor.
If there is a mechanic’s lien issued against your property you need to contact a lien attorney immediately. An experienced attorney would be able to guide you in filing collateral actions to save your time and money.