Mechanics Lien | Sweeney Law, P.A. https://www.sweeneylawpa.com Wed, 23 May 2018 15:50:18 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.2 Mechanic’s Liens: Creation, Perfection, and Priority https://www.sweeneylawpa.com/mechanics-liens-creation-perfection-and-priority/ Fri, 25 May 2018 12:00:53 +0000 https://www.sweeneylawpa.com/?p=556 Read More »]]> Although it sounds unrelated to the building construction industry, a mechanic’s lien is a powerful tool for building contractors and subs who seek to collect for their completed work. A contractor should consider a mechanic’s lien when the owner of a property or the entity responsible for payment does furnish payment according to a contract or verbal understanding. That is because the work that the contractor has provided on the construction site serves as a lien (a security interest acquired in property by a creditor). The security interest is not released until the responsible party satisfies the payment. Mechanic’s liens are crucial for contractors who are not having their agreements met. However, there are other legal processes at work driving the lien statute and policy.

Creation

All liens must come into existence somehow–they have to be created. Under common law, liens were created by operation of law or by the conduct of parties to a contract. For example, under common law, a worker adding value to personal property created liens. Adding value included fixing or somehow enhancing the property. Today, states have augmented the common law by enacting legislation recognizing mechanics lien as long as certain conditions are met. In Florida, legislation ensures the viability of a mechanic’s lien, however, there is more to bringing the lien into operation.

Perfection

As with creation, all liens must be perfected. At a fundamental level, a lien is simply a security interest. Perfection is the process through which a secured party (the holder of the lien interest) gives notice to the world that it possesses a security interest in a piece of property. Generally, perfection occurs through a court filing or taking possession of the collateral. In Florida, sending notice to the responsible party of the encumbered property perfects a mechanic’s lien. The rule here is simple: if the responsible party does not receive notice (Notice to Owner) within 45 days from the date the service(s) in question were furnished, then lien was never perfected and the opportunity to do so may be lost. There are a few minor exceptions to this rule set out in the mechanic’s lien statute at Florida § 713.06 (2-c).

Priority

Generally speaking, the priority of the lien is determined when a mechanic’s lien is perfected.  Priority is the mechanism that determines which lien takes precedence when there are several competing claims to a property. For example, a contractor previously builds an addition to a home and owner of the property does not pay for the services. The contractor gives the owner notice of a mechanic’s lien for the unpaid services. Subsequently, another contractor is hired to install electrical panels on the addition. Once again, the owner does not pay. This contractor also places a mechanic’s lien on the home for the unpaid services. If the home was to go under foreclosure, the contractor who initially built the addition and who initially perfected the mechanic’s lien is first in line to receive proceeds from the sale. Priority becomes an important aspect of the mechanic’s lien when there is not enough money to pay all contractors due to liens previously perfected.

Fort Lauderdale Construction Attorney

If you have experienced non-payment for work completed on a construction project, a mechanic’s lien may be the right tool for you. Attorney Brendan A. Sweeney is an experienced construction law attorney and he is ready to help you get the money that is due to you. Involving an attorney in your construction dispute is a wise decision and raises the likelihood that you will prevail in court. Contact us now for a consultation.

Resource:

zlien.com/mechanics-lien/florida-lien-statute/#71306-Liens-of-Persons-Not-in-Privity-Proper-Payments

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Mechanic’s Lien Law in Florida https://www.sweeneylawpa.com/mechanics-lien-law-in-florida/ Thu, 07 Dec 2017 16:44:26 +0000 https://www.sweeneylawpa.com/?p=319 Read More »]]> What is a Mechanic’s Lien?

A Mechanic’s Lien is a form a security interest that is obtained by an individual who provides services, materials and labor as a way to add value to personal or real property. The individual who labored on the property can seek an interest against the property in the form of a lien. This claim is appropriate when payment for labor or materials are not furnished by the property owner. Once a court grants a Mechanic’s Lien, the property is encumbered by the lien until payment is made by the property owner. In other words, unless payment is made, the laborer possesses a form of an ownership right to the property. Nonpayment by the owner can permit the laborer to maintain possession of the property.

When Would I Need a Mechanic’s Lien?

A classic scenario where the use of a mechanic’s lien is warranted is in the case of nonpayment for a real estate construction job. In this example, a contractor has completed work on a property, but the property owner refuses to make payment for one reason or another. It is important to note that a mechanic’s lien is even more appropriate when the property was built to all standards and specifications and there exists no contractual dispute. On occasion, payment is withheld by property owners due to some kind of contractual dispute surrounding job quality or warranty. Therefore, for a contractor to make the best case for a mechanic’s lien, they ought to provide services as agreed upon in the construction contract. A mechanic’s lien is also useful when the individual responsible for payment skipped town or is not reachable. In this case, the property owner cannot transfer or sell the property without first settling the lien issue.

How Do I File a Mechanic’s Lien in Florida?

To file a mechanic’s lien in Florida, you must identify the person who is responsible to make payment. This responsible party is usually the property owner. After you make that identification, you must send notice to the owner. The notice establishes ownership of a security interest against the property. After notice is made, the laborer must prepare a Claim of Lien and record it with the proper recording office within 90 days of the final delivery of the services in question. Ensuring that the Claim of Lien is recorded within 90 days is a crucial piece of the process. Failing to record within the allotted timeframe can void the lien. After the Claim of Lien is recorded, Florida law requires the person seeking the lien to serve the Claim of Lien on the responsible party within 15 days of recording the lien. This entire process can get complicated because of the strict calendar deadlines. Hiring an experienced construction law attorney to guide you through the process is a wise decision.

Do You Need Help Filing a Mechanic’s Lien?  

If you have experienced non-payment for work completed on a construction project, a mechanic’s lien may be the right tool for you. Attorney Brendan A. Sweeney is an experienced construction law attorney and he is ready to help you get the money that is due to you. Involving an attorney in your construction dispute is a wise decision and raises the likelihood that you will prevail in court. Contact us now for a consultation.

Resources:

law.cornell.edu/wex/mechanics_lien

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0713/Sections/0713.08.html

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