What Is a Mechanic Lien?
A Mechanic Lien is a legal instrument used by contractors and builders used to claim payment for the construction project or improvements made to various items. It is usually completed and filled after the contractor has waited some time and still has not received any payment or even notice of the delay of payment from the property owner. It creates a burden on the item or real estate and it is very difficult to sell or transfer any kind of property with an outstanding lien. The lien exists until the contractor receives the money owed by the property owner.
For a full list of Mechanic Lien templates please check out our library and the related forms below:
- A Notice of Intent to Lien warns about the contractor's intention to file a Mechanic's Lien. It can be sent to the property owner to tell them that is their last chance to settle debts before they deal with a lien.
- Lien Release Forms are submitted to remove the lien from public records. File it when the lien claim has been satisfied unless the claim expires within a certain period of time.
- A Conditional Waiver and Release Forms can be completed to confirm the arrangement between the parties to pay off the lien with payment to the party that holds the lien. You cannot remove the Mechanic's Lien without a Mechanic Lien Release issued when the payment clears.
- An Unconditional Waiver and Release is a more common type of lien - it means the release of the lien has no limitations or restrictions - the parties agree that the project is finished and the payment was provided with no further claims or troubles.
- A Claim of Lien must be filed in the county where the construction project is situated to claim this property or improvements to it as security against money owed.
How to File a Mechanic Lien?
The best way to remind your debtor about the unpaid invoice is to file a Mechanic Lien. This is easier than filing a lawsuit which takes more time and money. Here is how you file a Mechanic Lien:
- Make sure you can file a lien. Different states have different regulations that establish who and when has a right to utilize a Mechanic Lien even when the money is still owed. Once you know you can file a lien, warn the property owner about it with a Notice of Intent to Lien.
- Compose the Mechanic Lien Form. At a minimum, you need to indicate the lien amount (the amount of money you still have to receive), description of the property, your name, and contact details.
- Present the lien to the county clerk in a location where the job site is situated. You may have to appear in person at a county recorder's office or tax records office - the name of the agency also depends on the state you are in. You can draft a Mechanic Lien on Car if the car owner has not paid you for repairs or improvements and file it with the local Department of Motor Vehicles office.
- Give a copy of the claim to people involved in the project and those affected by the lien - all contractors, subcontractors, construction lenders.
- Learn the expiry date of your lien and extend it if you have to. Once you are paid, you can release the lien.
Haven't found the template you're looking for? Take a look at these related templates:
This is a formal document that confirms an agreement between a lienholder (the creditor) and the owner of a property (the debtor) to repay a debt and verify the lien release regarding the property or items in question.
This is an official warning sent by the potential lienholder to the property owner to warn them of the intent to submit a Claim of Lien
An individual may use this document to lets suppliers and contractors receive money they have earned for work and improvements to another party's property.