Contractors, subcontractors, and the like know that they are entitled to payment for the labor, services, or materials they have furnished on a construction project. They may even know about their right to file a mechanic’s lien. What many of them don’t know is how to properly navigate the mechanic’s lien process, which often leads to a rejected lien. If you’re wondering why your lien was rejected or simply want to avoid that possibility, our Bradenton construction lawyers will provide you with a little insight. Part two will wrap up this article series.
Have You Properly Filed Your Mechanic’s Lien?
Everyone is not qualified to file a mechanic’s lien. A lienor can be a contractor, subcontractor, sub-subcontractor, a laborer, a material man in contract with an owner or another contractor, a subcontractor or a sub-subcontractor, or a professional lienor (i.e., an architect, engineer, surveyor). Next, you must be sure that you have preserved your lien rights with the proper notices. Third, you must produce the proper mechanic’s lien form with the correct information and record the lien (within 90 days) within the specified deadline. Then, you must send a notice (within 15 days) that you have recorded the lien. Lastly, when necessary (after one year) you must enforce your lien.
Common Reasons Why Liens Are Rejected
The lien process is a complex process and a small mistake can derail your success. Meticulousness is the key to seeing your lien through to completion. Liens, however, have been rejected for a number of reasons including:
- Administrative mistakes: Missing or omitting information, insufficient fees, or page margins that don’t meet county standards.
- No lien rights: A failure to preserve lien rights by failing to file or include the proper documents or missing deadlines.
- A recorder making their own judgment: During the recording process, a recorder may deem the information to be unclear, not descriptive enough (property description), or that the claim doesn’t warrant a mechanic’s lien.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.