But, in reality, it is a tough job. It is true that working in such projects is rather rewarding for material suppliers, craftsmen, laborers, and equipment suppliers. However, at the same time, it is also important for you to ensure that you get properly paid for your time, services, and materials.
When you talk about a mechanic’s lien, it is sometimes also referred to as a construction lien or laborer’s lien. It is basically an additional tool that helps to facilitate payment for all your hard work on any construction project. When you decide to file a mechanic’s lien, it may involve various types of details and also requires a proper follow-through. The way you file such a lien is largely dependent on the state you live in.
Factors to Consider While Filing a Mechanic’s Lien
There are several factors you need to keep in mind when trying to figure out how to file a mechanics lien. Although these may differ from one state to another, the below-mentioned factors remain the same for all the states.
- Do Proper Research: Depending upon the exact location of the project, you need to find out whether it is possible for you to file a lien or not. It is needless to say that the project and any associated liens will be subjected to the laws of the state where the construction of the project is taking place. For example, if your company office is located in Arizona and the project construction is taking place in California, you will have to find out the lien laws of California. When it comes to filing such a lien, 3 factors need to be determined. Firstly, your connection or relationship to the said project. Secondly, whether or not it is necessary for you to give notice. Lastly, the timeline needed to record a lien.
- Form the Lien: The way a lien is prepared is also based on an accurate and current lien form. Once the lien is successfully prepared, it needs to be filed with the clerk or recorder in the county or any other jurisdiction where the project is actually located. It is important for you to understand that liens often get rejected subject to submission requirements of the clerk. It will be a good idea to understand what the clerk actually wants before you start preparing the lien.
Get The Lien Recorded: It is important for a lien to be recorded in the jurisdiction or county where the project in question is being constructed. To eliminate matters, you can also hire a courier to get the lien delivered to the recording office on time. There are several countries that also allow you to file a mechanic’s lien electronically.