Construction liens (also referred to as mechanics’ liens) are designed to protect construction contractors against clients who fail to pay for their services, including labor and the materials they furnish. Contractors typically have a specific number of days to file a lien after they’ve finished work, and must file the lien in the county where the property is located.
Construction liens can only be filed when there is a legal contract between the property owner and the contractor. Contractors file such liens when they believe the property owner has breached the contract, generally by failing to pay for work completed. Liens can only be filed for work to which the property owner has consented.
If a judge grants the contractor a lien, the property owner may be required to sell all or a portion of the property to meet the financial obligation he has failed to pay.
The legal requirements for filing a construction lien vary from state to state, although most state laws have the same general requirements. The property owner must be notified that a construction lien is being requested and the lien must be filed in court with a foreclosure action requested. There are timelines, and if the property owner does not pay, the property could be foreclosed.
Barsh & Cohen represents clients in all areas of construction, including contracting, liens and litigation for general contractors, construction managers, subcontractors and suppliers. We can help with any construction-related litigation. Contact us to schedule a consultation. {{account:url}}