How to file a Mechanics Lien [in every state!]

If you decide to file your Mechanics Lien, you first need to figure out whether you have the right to file the lien. This typically involves asking yourself three questions: Does state law allow you to file a Mechanics Lien? Did you send the required notices? And are you within your lien deadline?

00:00 - Intro
00:37 - Do you have the right to file?
02:38 - How to file a lien claim
03:50 - Common Filing Mistakes
04:13 - How to file yourself

#MechanicsLien #Construction #PaymentIssues


Regarding the first question, the most traditional construction participants – for example, general contractors, subcontractors, and material suppliers – almost always have lien rights. If you’re not sure if your state allows you to file a lien, head over to levelset.com/mechanics-lien/ and check out our free state by state Mechanics Lien resources.

To answer the second question, generally speaking, you’ll want to pay attention to these 2 main notices:
The Preliminary Notice: Many states require contractors and suppliers to deliver a Preliminary Notice to the property owner by certified mail at the very beginning of work. If you don’t send this notice on time, you likely lose lien rights.
The Notice of Intent to Lien: Only a few states require the Notice of Intent to Lien, but it’s usually a lot easier for contractors and suppliers to deal with than the Preliminary Notice. Don’t wait too long after you send a Notice of Intent, because your mechanics lien deadline won’t wait for you!

Finally, you want to make sure you’re within your Mechanics Lien deadline. Lien deadlines are strict, and there are very few exceptions. The lien filing timeline is usually tied to the completion of the project, or the last day you provide labor or materials.

If you have the right to file a lien, it’s time to fill out the lien claim itself. There is certain information that must be included and accurate for the lien to be valid. Making a mistake on these forms may cost you additional fees, or even the loss of your lien rights. It’s a good idea to consult your county recorder’s office ahead of time to learn any other special filing requirements.

Once everything is filled out properly, it’s time to file your lien with the recorder’s office. All Mechanics Lien claims need to be filed in the county where the project is located. Once you know the county, you’ll need to figure out which county office files Mechanics Liens. There are several different ways to file your lien with the county recorder’s offices directly.
You can go in-person: If you’re going to do the lien filing yourself, then this is probably your best option.
You can mail file your lien claim: If you are mailing your lien claim, be aware of mailing delays that might cause you to miss your Mechanics Lien deadline. Also it’s important to note that mailing a lien claim to the recorder’s office can also take much longer to process due to backlog!
You can also file your Mechanics Lien electronically: Some counties have electronic filing or “eRecording,” but you’ll typically have to register with a third party eRecording service to take advantage of this. Very few counties allow contractors or suppliers to electronically record liens directly.

The last thing you’ll need to keep in mind, is that in most states, if you’re the person who files the lien, you also need to notify the property owner, prime contractor and construction lender. Once your mechanics lien is filed, it's only valid for a short period of time, which again, varies from state-to-state. If the deadline to enforce your lien is approaching, you’ll want to make sure you either extend the deadline, or enforce the lien.

If you need help filing a lien in any state, we’re here to help. Visit levelset.com/mechanics-lien/ for free state by state resources and forms; talk or live chat with one of our payment experts, or ask a specific question in our Ask an Expert Center at levelset.com/payment-help/ask-question/.

Over 500,000 contractors and suppliers connect on Levelset’s cloud-based platform to make payment processes stress-free. Users easily exchange payment documents like Lien Waivers, Pay Applications, and Preliminary Notices, they see a complete picture of who is on their job, and are empowered with the resources and knowledge they need to be confident in payment. The results are faster payments and fewer surprises.
Levelset is venture-backed by S3 Ventures, Altos Ventures, and Brick & Mortar Ventures. Headquartered in New Orleans with offices in Austin and Cairo, Egypt, Levelset employs more than 150 people. For more information about Levelset, visit levelset.com or call 866-720-5436.