How Liens Work in Construction
Each state has its lien laws for the construction industry, which gives the contractor and supplier the leverage to file a lien on the property if the lien remains unpaid. It remains a vital tool for the contractors if they remain unpaid for their work done at the property. The best part about lien is that it is very easy to file. Once the lien is filed, the person asking for the claim has around 2 months to 2 years for initiating the negotiation with the owner. The mechanics lien should be considered as a process rather than assuming it is a single document. This is considered because the contractor is expected to send the initial notices at first in regards to its payment before filing a lien. If in any case the contractor misses a step or misses the deadline of filing a step, he might end up losing his right to file a lien altogether.
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Even the slightest of mistakes can land the claimant in trouble and evade his chances of filing the lien process. But despite all the challenges that come with it, filing a mechanic lien probably remains one of the strongest and powerful tools that one can pursue in the construction industry.
The Five Steps to File a Mechanics Lien
Ensure you have the right to file a lien?
It is very important to have the idea that if you are eligible to file a lien. Each state has its own set of rules to determine the rights of a person who is filing a mechanic lien and the eligibility process involved. The person filing the lien has to follow the rules of the state or he might lose the lien right at any point in time.
Draft the lien
The following step involves producing all the legit documents. One is expected to draft the lien form that has to file and would be known as the lien claim. One is expected to be very careful while filing drafting the claim process.
File your lien with the county clerk or recorder
Once you have determined both the above steps it’s time to file your lien which could be done with just 5 dollars in the pocket to spending thousands on it. The lien could be mailed or filed in person or could also be filed through several electronic mediums. One can also hire a filing service through a law firm and can make the filing a lot easier.
Notify parties
Once you are done filing a lien, one is expected to send a copy of it or inform with a notice to all the people involved. It gets important to let everyone know about the ongoing process and its consequences from it.
Enforce, extend, or release your lien
If 4 of the above steps are complete, it’s time to congratulate yourself because you have almost completed your steps the right way. Now once you are done it’s important to release your lien within time. Each state has its time regulation within which one has to react and get the job done.
We at the national lien and bond claim system will be happy to help you file a lien in Florida. Our team has significant experience in dealing with the mechanic’s lien and we would be happy to assist you at every step.
Also read for
A Primer on Stop Notice and Payment Bond Claim
What Are Liens and How Can They Impact Your Property?
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