Key Takeaways –

A contractor or subcontractor can file a construction lien against a property if the owner has not paid for work done on it.A lien makes it difficult or impossible to sell or refinance a property.If you are dissatisfied with the quality of work done, it’s your responsibility to seek a resolution.

The laws regarding construction liens vary from state to state. In some laws, it may be referred to as a mechanic’s lien.

How long is a construction lien good for in Michigan?

Conclusion – The key things to remember on any residential construction project in Michigan are:

Construction lien rights cannot be waived in a construction project. Only licensed contractors have the right to a construction lien. Owners who have been asked must provide a Notice of Commencement within 10 days of the start of any residential construction project. Whenever a contractor requests payment, or whenever payment is to be made to a contractor, the owner should be supplied with a Sworn Statement. Any claim for lien must be recorded within 90 days after the contractor’s last date of work on the project and the lien claimant has 1 year to file a lawsuit. In order to obtain the protections of the Michigan Construction Lien Act, an owner must comply with the provisions of the Act, and as such, knowledge of these provisions is critical. If a lien claimant has improperly recorded a construction lien, there are avenues to pursue to have any such recorded liens removed.

The Michigan Construction Lien Act includes rigid timelines and responsibilities for both the owner of residential property, as well as for parties performing the improvements. The provisions of the Michigan Construction Lien Act are also somewhat confusing, and each construction project potentially provides unique issues that should be analyzed.

1. Inevitably, questions or issues will arise and many times, the contractor performing work on your property will have legal counsel already retained and providing advice before, during and after the project is completed.
2. Retaining an experienced construction attorney to review and negotiate construction contracts and to provide owners with guidance regarding these statutory requirements can provide a safeguard to lessen the chance that an issue develops or that a lien is recorded.

Adam Toosley is a member at Hirzel Law, PLC and focuses his practice on real estate litigation, zoning and land use, construction, and financial services litigation. Over the course of his career, he has represented property owners, landlords, condominium associations, lenders and all parties in the construction chain, handling all aspects of real estate-related disputes, including construction defect cases, payment and landlord-tenant disputes as well as real estate foreclosures, mechanic’s lien cases and fraud and business tort claims in state and federal court as well as in mediations and arbitrations throughout the United States.

What is the Ontario construction lien Act?

Our Summary of the Key Changes to the Construction Lien Act The Construction Lien Act was first introduced in 1983, in an effort to protect contractors and suppliers and regulate how payments are made, to help ensure that workers who have provided services or materials during a construction project are paid for their work.

In an effort to modernize the original Construction Lien Act the Ontario government introduced Bill 142, the Construction Lien Amendment Act on May 31, 2017. The Bill introduced a mandatory prompt payment regime, a mandatory fast-track dispute resolution process, as well as various substantive changes.

On December 12, 2017, Bill 142 received Royal Assent and is now called the Construction Act, In order to provide sufficient time to prepare for these changes, the Ontario government has scheduled the reforms to take effect in two stages: technical amendments on July 1, 2018, and prompt payment and mandatory interim adjudication on October 1, 2019.

How long is a construction lien valid in Florida?

A lien is valid for one year, unless a lienor files a lawsuit to enforce the lien prior to the expiration of the year. An owner has a right to file a Notice of Contest of Lien during the one-year period.

How long does a construction lien last in NJ?

New Jersey Mechanics Lien FAQs Preliminary notice deadlines Generally, none. However, on residential projects, the GC should file and serve a Notice of Unpaid Balance and Right to File Lien. Lien must be filed within 90 days of last providing labor or materials.

On residential projects, due within 120 days but arbitration demand and award required before, which takes at least 30 days. An action to enforce a New Jersey mechanics lien must be initiated within 1 year from last providing labor or materials. Note that this deadline does not run from the lien filing.

Also, this deadline may not be extended, and missing the enforcement deadline renders the lien unenforceable. Also note that this deadline may be significantly shortened. If the property owner or other interested party serves a notice requiring the claimant commence an action to enforce the lien claim, the claimant must do so within 30 days,

1. Preliminary notice deadlines Notice of Unpaid Balance due within 60 days of last furnishing on Residential projects.
2. Lien must be filed within 90 days of last providing labor or materials.
3. On residential projects, due within 120 days but arbitration demand and award required before, which takes at least 30 days.

An action to enforce a New Jersey mechanics lien must be initiated within 1 year from last providing labor or materials. Note that this deadline does not run from the lien filing. Also, this deadline may not be extended, and missing the enforcement deadline renders the lien unenforceable.

• Also note that this deadline may be significantly shortened.
• If the property owner or other interested party serves a notice requiring the claimant commence an action to enforce the lien claim, the claimant must do so within 30 days,
• Preliminary notice deadlines Notice of Unpaid Balance due within 60 days of last furnishing on Residential projects.

Lien must be filed within 90 days of last providing labor or materials. On residential projects, due within 120 days but arbitration demand and award required before, which takes at least 30 days. An action to enforce a New Jersey mechanics lien must be initiated within 1 year from last providing labor or materials.

Note that this deadline does not run from the lien filing. Also, this deadline may not be extended, and missing the enforcement deadline renders the lien unenforceable. Also note that this deadline may be significantly shortened. If the property owner or other interested party serves a notice requiring the claimant commence an action to enforce the lien claim, the claimant must do so within 30 days,

Contractors, suppliers, property owners, construction lenders, and other vendors will encounter all kinds of lien-related paperwork and questions when working on New Jersey construction jobs. Here are some of the common issues you may encounter, and answers written by construction attorneys and payment experts.

In New Jersey, general contractors, subcontractors, laborers, material/equipment suppliers, architects, engineers, surveyors, and construction managers are entitled to mechanics lien rights. New Jersey used to not allow suppliers to suppliers to claim a mechanics lien. However, that changed in 2011. Now, a supplier to a supplier is allowed to claim a mechanics lien, but only within the first 3 tiers – that is, that a supplier to a supplier who contracted with the property owner is allowed a mechanics lien, but a supplier to a supplier who contracted with a party other than the owner is not.

Sub-sub-subcontractors, suppliers to a sub-sub, or suppliers to supplier of a sub, do not have lien rights in New Jersey.

• Non-residential projects
• A New Jersey mechanics lien on non-residential property must be lodged for record within 90 calendar days from the date the claimant last furnished labor or materials for the project.
• Residential projects

On residential property, a mechanics lien must be lodged for record within 120 days of the claimant’s last date furnishing labor or materials to the project, but not later than 10 days after the lien claimant receives the arbitrator’s determination. Since the selected arbitrator may take as much as 30 days, and there may be some time involved in selecting the arbitrator, a lien claimant must not waste time in preparing to file a residential construction lien.

• Dive deeper: No, a full isn’t required. New Jersey’s statutory lien form calls for a description of the property to be liened by block, lot, city and county. However, it also provides that if no block and lot is assigned “a metes and bounds or other description of the property” is sufficient. For best practice purposes, a block and lot description should be used if available.

No. The mechanics in New Jersey secures the payment of the unpaid contract amount, reduced by the amount of any mechanics liens filed by others under your contract. However, attorney’s fees may be awarded by the court in a foreclosure action if the defendant offers a baseless defense.

• Yes, a mechanics lien may be filed against a, provided the lien claimant would otherwise have valid mechanics lien rights.
• If a condo association is the party who contracted the work, a lien may be filed against the association.
• However, the lien will not attach to the property.
• If it comes time for enforcement, the judgment will be enforced by assessments against the unit owners after reasonable notice and in a manner directed by the court.

Yes. New Jersey requires the lien to be in order to be valid. Further, in New Jersey, the lien must be signed by the claimant or an officer or partner of the claimant. The claimant’s attorney or agent is unable to sign the lien. Yes. In New Jersey, the lien claimant must serve a copy of the lien (signed and dated by the claimant and stamped by the county clerk) on the property owner (and the general contractor if the lien claimant is not the general contractor) via certified mail, return receipt requested, AND regular mail within 10 days of the lien’s recording.

Yes, a filed in New Jersey to correct any inaccuracies or errors in the original lien form, or to revise the amount claimed due to (1) additional labor and/or materials furnished, (2) release a proportionate share of interest in the real property, or (3) partial payment of the claim. The amendment should be in substantially the same form as provided under,

In New Jersey, an action to must be commenced within one year of the date of the claimant’s last furnishing labor or materials to the project. However, this may be reduced to within 30 days after the receipt of written notice from the property owner or other interested party (by personal service or certified mail, return receipt requested) requiring the claimant to commence an action to enforce the lien claim.

• No, New Jersey is an “,” meaning that the amount recoverable under a lien is limited to the amount of project funds yet to be paid to the general contractor.
• Generally, no.
• The mechanics lien attaches to the property at (and is determined by) the time of filing of the lien, and the first in time rule applies.

However, a subsequently recorded mortgage may have priority over a mechanics lien if the mortgage secures funds that have been applied to certain things as outlined by New Jersey statute (generally, construction liens). If a preliminary notice is filed prior to the recording of the permanent financing, the mechanics lien will have priority over the permanent mortgage, but not over the construction mortgage.

The mechanics lien will have priority over a prior conveyance, lease, or mortgage if a Notice of Unpaid Balance and Right to File Lien is recorded prior to the recordation of the prior encumbrance. As against competing mechanics liens, the date of attachment determines priority – if the liens have the same date of attachment, they will share pro-rata in the distribution of funds from a foreclosure sale.

In New Jersey, once a mechanics lien is satisfied, the lien claimant must file a certificate discharging the lien with the county clerk within 30 days. The Certificate of Discharge must meet certain statutory requirements, including: book and page of recording of the claim; the name of the owner; the date of filing; the location of the property; and the hiring party.

May result in the lien claimant being responsible for the attorney fees and court costs of a party who requests the court to discharge the lien, as well as any damages incurred. → No attorney is going to be able to answer your question without more information. In general, be knowledgeable about the scope of the contract, the scope of the work performed, and be prepared to prove you did what you were supposed to do.

You really should consult with an attorney to help you prepare, even if you don’t want to hire one to represent you in your claim. I would be happy to discuss whether you can file a contractor’s lien, and what it would cost. If you completed the work in September of 2021, you no longer have the ability to lien the New Jersey property.

1. If you have a valid enforcable agreement with the owner of the improved property or the general contractor, you could sue the other party for breach of contract, unjust enrichment, etc.
2. Contractors & suppliers have strong lien rights in New Jersey.
3. If a contractor or supplier isn’t paid on an New Jersey job, they can turn to filing a lien to speed up payment and protect themselves.

However, there are specific requirements and rules that must be followed. Here are 5 essential things you need to know about New Jersey’s mechanics lien law. There is a wide range of project participants eligible to file for a mechanics lien in New Jersey.

In New Jersey, general contractors, subcontractors, laborers, material and equipment suppliers, architects, engineers, surveyors and construction managers are all entitled to mechanics lien rights. In 2011, New Jersey even amended mechanics lien law to allow suppliers to suppliers lien rights as well, depending on tier.

Only suppliers to suppliers in the first 3 tiers (or suppliers to suppliers directly in contact with the property owner) are entitled to rights. Sub-sub-subcontractor, or a supplier to a sub-sub, or supplier to supplier of a sub, do not have lien rights in New Jersey.

There are two different deadlines to file a mechanics lien in New Jersey, depending on whether the project is considered a residential or non-residential project. A non-residential project participant has 90 days from the date the labor or materials were last provided to the property. The lien must also be served to the property owner within 10 business days from the date that the lien was recorded.

For residential properties, a lien must be filed within 120 days from the date the project participant last provided labor or materials on a property. However, prior to a residential lien being filed, an arbitration demand and award is required. This takes at least 30 days (generally more), so the deadline is, practically speaking, closer to the date labor and/or materials were last delivered.

After that, the lien must be served to the property owner within 10 business days from that date it was recorded. Like the deadline to file, preliminary notice has two separate rules depending on the type of project. Residential projects do require that a is filed within 60 days after the date the project participant last provided service or materials.

Further, the lien claimant must also serve a demand for arbitration (with the American Arbitration Association, unless another party is specified in the contract) on the property owner, including a completed and signed copy of the Notice of Unpaid Balance and Right to Claim Lien and an affidavit that the notice has been lodged for record within 10 days from the date the notice is sent.

While it is always a good idea to file Notice of Unpaid Balance and Right to Claim Lien in order to preserve lien rights, it is not required for non-residential projects. Notice of unpaid balance is required for subs and suppliers to file a Mechanics Lien. Get yours fast Some states require notarization and some do not.

In New Jersey, it is required that a mechanics lien is notarized. In addition, the project participant is required to sign the lien. The project participant’s signature on the lien can be substituted with the signature of a partner or officer but it can not be substituted with the signature of a lawyer or agent. In, we will walk you through each step required to qualify for and file a New Jersey mechanics lien. This guide explains the notices you need to send, the information required on the New Jersey mechanics lien form, and essential tips about delivering it to the county office for recording. Be careful! Accuracy is important. New Jersey mechanics liens contain a lot of information, leaving room for mistakes. Filling out the form is the trickiest part of the entire process because even entirely. It’s important to make sure the information you provide is 100% accurate including the legal names of each party, the property description, and the claim amount. Review every detail carefully. The next step after filling the form out is to file the lien with the county clerk in the New Jersey county where the property is located. Each county clerk’s office has its own rules and requirements. to find the fees, requirements, and contact information for your local office. Under New Jersey lien law, claimants are required to serve a copy of the lien on the property owner within 10 days of filing at the county clerk. You must also serve a copy on the GC. Otherwise, the lien claim is invalid. New Jersey’s service requirements are unique.

1. Copies of the lien must be sent by certified mail, return receipt requested AND regular mail.
2. The validity of your claim depends on correct service on the owner and the GC, so make sure you get it right.
3. Mechanics liens are valid for 1 (one) year after last furnishing in New Jersey unless the lien is extended.

If the owner files a notice to commence an action, you may only have 30 days to, Failure to meet these deadlines means your lien expires and it’s invalid. After you receive payment, you can, The provisions of the New Jersey statutes that permit the filing of mechanics liens and materialman’s liens can be found in New Jersey’s Construction Lien Law, The full text of the New Jersey Construction Lien Law is provided below, and has been updated as of 2020.

1. As used in this act:
2. “Claimant” means a person having the right to file a lien claim on real property pursuant to this act.
3. “Community association” means a condominium association, a homeowners’ association, a cooperative association, or any other entity created to administer or manage the common elements and facilities of a real property development that, directly or through an authorized agent, enters into a contract for improvement of the real property.

“Contract” means any agreement, or amendment thereto, in writing, signed by the party against whom the lien claim is asserted and evidencing the respective responsibilities of the contracting parties, including, but not limited to, price or other consideration to be paid, and a description of the benefit or improvement to the real property subject to a lien.

In the case of a supplier, “contract” shall include a delivery or order slip referring to the site or project to which materials have been delivered or where they were used and signed by the party against whom the lien claim is asserted or that party’s authorized agent. As referenced herein: the phrase “party against whom the lien claim is asserted” means the party in direct privity of contract with the party asserting the lien claim; and the term “signed” means a writing that bears a mark or symbol intended to authenticate it.

“Contract price” means the amount specified in a contract for the provision of work, services, material or equipment. “Contractor” means any person in direct privity of contract with the owner of real property, or with a community association in accordance with section 3 of P.L.1993, c.318 (C.2A:44A-3 ), for improvements to the real property.

A construction manager who enters into a single contract with an owner or a community association for the performance of all construction work within the scope of a construction manager’s contract, a construction manager who enters into a subcontract, or a construction manager who is designated as an owner’s or community association’s agent without entering into a subcontract is also a “contractor” for purposes of this act.

A licensed architect, engineer or land surveyor or certified landscape architect who is not a salaried employee of the contractor, or the owner or community association, performing professional services related to the improvement of property in direct contract with the property owner shall be considered a “contractor” for the purposes of this act.

1. County clerk” means the clerk of the county in which real property to be improved is situated.
2. Day” means a calendar day unless otherwise designated.
3. Dwelling” means a one-, two- or three-family residence that is freestanding or shares a party wall without common ownership interest in that party wall.

A dwelling may be part of a real property development. “Equipment” means any machinery or other apparatus, including rental equipment delivered to the site to be improved or used on the site to be improved, whether for incorporation in the improved real property or for use in the construction of the improvement of the real property.

A lien for equipment shall arise only for equipment used on site for the improvement of real property, including equipment installed in the improved real property. In the case of rental equipment, the amount of any lien shall be limited to the rental rates as set forth in the rental contract. “Filing” means the (1) lodging for record and (2) the indexing of the documents authorized to be filed or recorded pursuant to this act in the office of the county clerk in the county where the property subject to the lien is located, or, in the case of real property located in more than one county, in the office of the county clerk of each such county.

A document that is “lodged for record” shall mean a document that is delivered to the county clerk and marked by the clerk with a date and time stamp or other mark indicating the date and time received. “First tier lien claimant” means a claimant who is a contractor.

“Improvement” means any actual or proposed physical changes to real property resulting from the provision of work, services, or material by a contractor, subcontractor, or supplier pursuant to a contract, whether or not such physical change is undertaken, and includes the construction, reconstruction, alteration, repair, renovation, demolition or removal of any building or structure, any addition to a building or structure, or any construction or fixture necessary or appurtenant to a building or structure for use in conjunction therewith.

“Improvement” includes, but is not limited to, excavation, digging, drilling, drainage, dredging, filling, irrigation, land clearance, grading or landscaping. “Improvement” shall not include the mining of minerals or removal of timber, gravel, soil, or sod which is not integral to or necessitated by the improvement to real property.

1. Improvement” shall not include public works or improvements to real property contracted for and awarded by a public entity.
2. Any work or services requiring a license for performance including, but not limited to, architectural, engineering, plumbing or electrical construction, shall not constitute an improvement unless performed by a licensed claimant.

“Interest in real property” means any ownership, possessory security or other enforceable interest, including, but not limited to, fee title, easement rights, covenants or restrictions, leases and mortgages. “Lien” or “construction lien” means a lien on the owner’s interest in the real property arising pursuant to this act.

Lien claim” means a claim, by a claimant, for money for the value of work, services, material or equipment furnished in accordance with a contract and based upon the contract price and any amendments thereto, that has been secured by a lien pursuant to this act. The term “value” includes retainage earned against work, services, materials or equipment furnished.

“Lien fund” means the pool of money from which one or more lien claims may be paid. The amount of the lien fund shall not exceed the maximum amount for which an owner can be liable. The amount of the lien that attaches to the owner’s interest in the real property cannot exceed the lien fund.

“Material” means any goods delivered to, or used on the site to be improved, for incorporation in the improved real property, or for consumption as normal waste in construction operations; or for use on site in the construction or operation of equipment used in the improvement of the real property but not incorporated therein.

The term “material” does not include fuel provided for use in motor vehicles or equipment delivered to or used on the site to be improved. “Mortgage” means a loan which is secured by a lien on real property. “Owner” or “owner of real property” means any person, including a tenant, with an interest in real property who personally or through an authorized agent enters into a contract for improvement of the real property.

“Owner” or “owner of real property” shall not include a “community association” that holds record title to real property or has an interest in real property. “Person” means an individual, corporation, company, association, society, firm, limited liability company, limited liability partnership, partnership, joint stock company or any other legal entity, unless restricted by the context to one or more of the above.

“Public entity” includes the State, and any county, municipality, district, public authority, public agency, and any other political subdivision or public body in the State. “Real property development” means all forms of residential and non-residential real property development including, but not limited to, a condominium subject to the “Condominium Act,” P.L.1969, c.257 (C.46:8B-1 et seq.), a housing cooperative subject to “The Cooperative Recording Act of New Jersey,” P.L.1987, c.381 (C.46:8D-1 et al.), a fee simple townhouse development, a horizontal property regime as defined in section 2 of P.L.1963, c.168 (C.46:8A-2 ), and a planned unit development as defined in section 3.3 of P.L.1975, c.291 (C.40:55D-6 ).

“Residential construction,” also referred to as “residential housing construction” or “home construction,” means construction of or improvement to a dwelling, or any portion thereof, or any residential unit, or any portion thereof. In the case of a real property development, “residential construction” or “residential housing construction” or “home construction” also includes: (1) all offsite and onsite infrastructure and sitework improvements required by a residential construction contract, master deed, or other document; (2) the common elements of the development, which may also include by definition the offsite and onsite infrastructure and sitework improvements; and (3) those areas or buildings commonly shared.

“Residential construction contract” means a contract for the construction of, or improvement to, a dwelling, or dwellings or any portion thereof, or a residential unit, or units, or dwellings, or any portion thereof in a real property development. “Residential purchase agreement” means a contract between a buyer and a seller for the purchase of a dwelling, or dwellings or a residential unit or units in a real property development.

“Residential unit” means a unit in a real property development designed to be transferred or sold for use as a residence, and the design evidenced by a document, such as a master deed or declaration, recorded with the county clerk in the county where the real property is located, or a public offering statement filed with the Department of Community Affairs.

“Residential unit” includes a unit designed to be transferred or sold for use as a residence that is part of a multi-use or mixed use development project. “Residential unit” shall not include a unit designed for rental purposes or a unit designed to be transferred or sold for non-residential use.

• “Second tier lien claimant” means a claimant who is, in relation to a contractor: (1) a subcontractor; or (2) a supplier.
• “Services” means professional services performed by a licensed architect, engineer, land surveyor, or certified landscape architect, who is not a salaried employee of the contractor, a subcontractor or the owner and who is in direct privity of contract with the owner for the preparation of plans, documents, studies, or the provision of other services by a licensed architect, engineer or land surveyor prepared in connection with improvement to real property, whether or not such improvement is undertaken.
• “State” means the State of New Jersey and any office, department, division, bureau, board, commission or agency of the State.
• “Subcontractor” means any person providing work or services in connection with the improvement of real property pursuant to a contract with a contractor or pursuant to a contract with a subcontractor in direct privity of contract with a contractor.

“Supplier” means any supplier of material or equipment, including rental equipment, having a direct privity of contract with an owner, community association, contractor or subcontractor in direct privity of contract with a contractor. The term “supplier” shall not include a person who supplies fuel for use in motor vehicles or equipment delivered to or used on the site to be improved or a seller of personal property who has a security agreement providing a right to perfect either a security interest pursuant to Title 12A of the New Jersey Statutes or a lien against the motor vehicle pursuant to applicable law.

1. Third tier lien claimant” means a claimant who is a subcontractor to a second tier lien claimant or a supplier to a second tier lien claimant.
2. Work” means any activity, including, but not limited to, labor, performed in connection with the improvement of real property.
3. The term “work” includes architectural, engineering or surveying services provided by salaried employees of a contractor or subcontractor, as part of the work of the contractor or subcontractor, provided, however, that the right to file a lien claim for those services shall be limited to the contractor or subcontractor.a.

Any contractor, subcontractor or supplier who provides work, services, material or equipment pursuant to a contract, shall be entitled to a lien for the value of the work or services performed, or materials or equipment furnished in accordance with the contract and based upon the contract price, subject to sections 6, 9, and 10 of P.L.1993, c.318 (C.2A:44A-6, 2A:44A-9 and 2A:44A-10 ).

1. b. For purposes of this section:
2. (1) “interest of the owner of the real property development” includes interest in any residential or nonresidential units not yet sold or transferred and the proportionate undivided interests in the common elements attributable to those units;
3. (2) “interest of the unit owner” includes the proportionate undivided interests in the common elements of the real property development;
4. (3) “unit owner” means an owner of an interest in a residential or nonresidential unit who is not a developer of the property and acquires the unit after the master deed or master declaration is recorded, or after the public offering statement is filed with the Department of Community Affairs; and

c. In the case of a condominium, notwithstanding the provisions of the “Condominium Act,” P.L.1969, c.257 (C.46:8B-1 et seq.), or in the case of any other real property development with common elements or common areas or facilities, if the contract is: (1) with the owner of the real property development, then the lien shall attach to the interest of the owner of the real property development; (2) with the community association, the lien claim shall be filed against the community association but shall not attach to any real property.

• e. If a tenant contracts for improvement of the real property, the lien shall attach to the leasehold estate of the tenant and to the interest in the property of any person who:
• (1) has expressly authorized the contract for improvement in writing signed by the person against whom the lien claim is asserted, which writing provides that the person’s interest is subject to a lien for this improvement;
• (2) has paid, or agreed in writing to pay, the majority of the cost of the improvement; or
• (3) is a party to the lease or sublease that created the leasehold interest of the tenant and the lease or sublease provides that the person’s interest is subject to a lien for the improvement.

f. An amount of a lien on an interest of a person other than a tenant shall be limited to the amount that person agreed in writing to pay, less payments made by or on behalf of that person in good faith prior to the filing of the lien.g. If an interest in real property is lawfully conveyed after work, services, material, or equipment are performed or furnished but before a lien attaches, the lien shall attach only to the interest retained by the owner or unit owner or community association, as the case may be, who contracted for the work, services, material or equipment and not to the interest previously conveyed.h.

1. Liens for the following improvements shall attach to real property only in the manner herein prescribed. In the case of an improvement:
2. a. Involving a dock, wharf, pier, bulkhead, return, jetty, piling, groin, boardwalk or pipeline above, on or below lands under waters within the State’s jurisdiction, the lien shall be on the improvements together with the contracting owner’s interest in the lots of land in front of or upon which the improvements are constructed and any interest of the contracting owner of the land in the land or waters in front of the land;
3. b. Involving removal of a building or structure or part of a building or structure from its situs and its relocation on other land, the lien shall be on the contracting owner’s interest in the improved real property on which the building or structure has been relocated;

c. Involving excavation, drainage, dredging, landfill, irrigation work, construction of banks, making of channels, grading, filling, landscaping or the planting of any shrubs, trees or other nursery products, the lien shall be on the land to which the improvements are made, and shall not be upon the adjoining lands directly or indirectly benefited from the improvements.

No liens shall attach nor shall a lien claim be filed: a. For materials that have been furnished or delivered subject to a security agreement which has been entered into pursuant to Chapter 9 of Title 12A of the New Jersey Statutes (N.J.S.12A:9-101 et seq.); b. For public works or improvements to real property contracted for and awarded by a public entity; provided, however, that nothing herein shall affect any right or remedy established pursuant to the “municipal mechanic’s lien law,” N.J.S.2A:44-125 et seq.; c.

For work, services, material or equipment furnished pursuant to a residential construction contract unless there is strict compliance with sections 20 and 21 of this act.a. A contractor, subcontractor or supplier entitled to file a lien pursuant to section 3 of P.L.1993, c.318 (C.2A:44A-3 ) shall do so according to the following process: (1) The lien claim form as provided by section 8 of P.L.1993, c.318 (C.2A:44A-8 ) shall be signed, acknowledged and verified by oath of the claimant setting forth: (a) the specific work or services performed, or material or equipment provided pursuant to contract; and (b) the claimant’s identity and contractual relationship with the owner or community association and other known parties in the construction chain.

(2) In all cases except those involving a residential construction contract, the lien claim form shall then be lodged for record within 90 days following the date the last work, services, material or equipment was provided for which payment is claimed. In the case of a residential construction contract, the lien claim form shall be lodged for record, as required by paragraph (8) of subsection b.

of section 21 of P.L.1993, c.318 (C.2A:44A-21 ), not later than 10 days after receipt by the claimant of the arbitrator’s determination, and within 120 days following the date the last work, services, material or equipment was provided for which payment is claimed.

• If requested, at the time of lodging for record, the clerk shall provide a copy of the lien claim form marked with a date and time received.b.
• A lien shall not attach or be enforceable unless the lien claim or other document permitted to be filed is: (1) filed in the manner and form provided by this section and section 8 of P.L.1993, c.318 (C.2A:44A-8 ); and (2) a copy thereof served in accordance with section 7 of P.L.1993, c.318 (C.2A:44A-7 ), except that every document lodged for record that satisfies the requirements of this section, even if not yet filed, shall be enforceable against parties with notice of the document.

A document shall be first filed, however, in order to be enforceable against third parties without notice of the document, including, but not limited to, an owner, bona fide purchaser, mortgagee, grantee of an easement, or a lessee or a grantee of any other interest in real estate.c.

• In the case of a residential construction contract the lien claim shall also comply with section 20 of P.L.1993, c.318 (C.2A:44A-20 ) and section 21 of P.L.1993, c.318 (C.2A:44A-21 ).d.
• For purposes of this act, warranty or other service calls, or other work, materials or equipment provided after completion or termination of a claimant’s contract shall not be used to determine the last day that work, services, material or equipment was provided.a.

Within 10 days following the lodging for record of a lien claim, the claimant shall serve on the owner, or community association in accordance with section 3 of P.L.1993, c.318 (C.2A:44A-3 ), and, if any, the contractor and subcontractor against whom the claim is asserted, a copy of the completed and signed lien claim substantially in the form prescribed by section 8 of P.L.1993, c.318 (C.2A:44A-8 ) and marked “received for filing” or a similar stamp with a date and time or other mark indicating the date and time received by the county clerk.

Service shall be by personal service as prescribed by the Rules of Court adopted by the Supreme Court of New Jersey or by: (1) simultaneous registered or certified mail or commercial courier whose regular business is delivery service; and (2) ordinary mail addressed to the last known business or residence address of the owner or community association, contractor or subcontractor.

A lien claim served upon a community association need not be served upon individual “unit owners” as defined in section 3 of P.L.1993, c.318 (C.2A:44A-3 ).b. The service of the lien claim provided for in this section shall be a condition precedent to enforcement of the lien; however, the service of the lien claim outside the prescribed time period shall not preclude enforceability unless the party not timely served proves by a preponderance of the evidence that the late service has materially prejudiced its position.

• The lien claim shall be filed in substantially the following form:
• CONSTRUCTION LIEN CLAIM
• TO THE CLERK, COUNTY OF _:

In accordance with the “Construction Lien Law,” P.L.1993, c.318 (C.2A:44A-1 et al.), notice is hereby given that (only complete those sections that apply): 1. On (date), I, (name of claimant), individually, or as a partner of the claimant known as (name of partnership), or an officer/member of the claimant known as (name of corporation or LLC) (circle one and fill in name as applicable), located at (business address of claimant), claim a construction lien against the real property of (name of owner of property subject to lien), in that certain tract or parcel of land and premises described as Block _, Lot _, on the tax map of the (municipality) of _, County of_, State of New Jersey, (or if no Block and Lot is assigned, a metes and bounds or other description of the property) in the amount of $(lien claim amount), as calculated below for the value of the work, services, material or equipment provided.

1. 2. In accordance with a written contract for improvement of the above property, dated_, with the property owner, community association, contractor, or subcontractor (circle one), named or known as (name of appropriate party), and located at (address of owner, unit owner, community association, contractor or subcontractor), this claimant performed the following work or provided the following services, material or equipment:
2. a._
3. b. _

c._etc.3. The date of the provision of the last work, services, material or equipment for which payment is claimed is _, 20_.

• 4. The amount due for work, services, material or equipment delivery provided by claimant in connection with the improvement of the real property, and upon which this lien claim is based, is calculated as follows:
• A. Initial Contract Price: $ _
• B. Executed Amendments to Contract Price/Change Orders: $_
• C. Total Contract Price (A + B) = $_
• D. If Contract Not Completed, Value Determined in Accordance with the Contract of Work Completed or Services, Material, Equipment Provided: _
• E. Total from C or D (whichever is applicable): $ _
• F. Agreed upon Credits: $ _
• G. Amount Paid to Date: $ _
• TOTAL LIEN CLAIM AMOUNT E – = $_
• NOTICE OF UNPAID BALANCE AND ARBITRATION AWARD

This claim (check one) does_does not_arise from a Residential Construction Contract. If it does, complete 5 and 6 below; if not residential, complete 5 below, only if applicable. If not residential and 5 is not applicable, skip to Claimant’s Representation and Verification.

1. An award of the arbitrator (if residential) was issued on_ in the amount of $_.
2. CLAIMANT’S REPRESENTATION AND VERIFICATION
3. Claimant represents and verifies under oath that:

1. I have authority to file this claim.2. The claimant is entitled to the amount claimed at the date of lodging for record of the claim, pursuant to claimant’s contract described above.3. The work, services, material or equipment for which this lien claim is filed was provided exclusively in connection with the improvement of the real property which is the subject of this claim.4.

This claim form has been lodged for record with the County Clerk where the property is located within 90 or, if residential construction, 120 days from the last date upon which the work, services, material or equipment for which payment is claimed was provided.5. This claim form has been completed in its entirety to the best of my ability and I understand that if I do not complete this form in its entirety, the form may be deemed invalid by a court of law.6.

This claim form will be served as required by statute upon the owner or community association, and upon the contractor or subcontractor against whom this claim has been asserted, if any.7. The foregoing statements made by me in this claim form are true, to the best of my knowledge.

• Name of Claimant
• _
• Signed
• _
• (Type or Print Name and Title)
• SUGGESTED NOTARIAL FOR INDIVIDUAL CLAIMANT:
• STATE OF NEW JERSEY
• COUNTY OF ss:
• On this _ day of _ 20_, before me, the subscriber, personally appeared (person signing on behalf of claimant(s)) who, I am satisfied, is/are the person(s) named in and who executed the within instrument, and thereupon acknowledged that claimant(s) signed, sealed and delivered the same as claimant’s (s’) act and deed, for the purposes therein expressed.
• _
• NOTARY PUBLIC
• SUGGESTED NOTARIAL FOR CORPORATE OR LIMITED LIABILITY CLAIMANT:
• STATE OF NEW JERSEY
• COUNTY OF ss:
• On this _ day of _ 20_, before me, the subscriber, personally appeared (person signing on behalf of claimant(s)) who, I am satisfied is the Secretary (or other officer/manager/agent) of the Corporation (partnership or limited liability company) named herein and who by me duly sworn/affirmed, asserted authority to act on behalf of the Corporation (partnership or limited liability company) and who, by virtue of its Bylaws, or Resolution of its Board of Directors (or partnership or operating agreement) executed the within instrument on its behalf, and thereupon acknowledged that claimant signed, sealed and delivered same as claimant’s act and deed, for the purposes herein expressed.
• _
• NOTARY PUBLIC
• NOTICE TO OWNER OF REAL PROPERTY
• NOTICE TO CONTRACTOR OR SUBCONTRACTOR, IF APPLICABLE

The owner’s real estate may be subject to sale to satisfy the amount asserted by this claim. However, the owner’s real estate cannot be sold until the facts and issues which form the basis of this claim are decided in a legal proceeding before a court of law.

• The lien claimant is required by law to commence suit to enforce this claim.
• The claimant filing this lien claim shall forfeit all rights to enforce the lien claim and shall be required to discharge the lien claim of record, if the claimant fails to bring an action in the Superior Court, in the county in which the real property is situated, to establish the lien claim: 1.

Within one year of the date of the last provision of work, services, material or equipment, payment for which the lien claim was filed; or 2. Within 30 days following receipt of written notice, by personal service or certified mail, return receipt requested, from the owner or community association, contractor, or subcontractor against whom a lien claim is filed, as appropriate, requiring the claimant to commence an action to establish the lien claim.

You will be given proper notice of the proceeding and an opportunity to challenge this claim and set forth your position. If, after the owner (and/or contractor or subcontractor) has had the opportunity to challenge this lien claim, the court of law enters a judgment against any of you and in favor of the claimant filing this lien claim, and thereafter judgment is not paid, the owner’s real estate may then be sold to satisfy the judgment.

A judgment against a community association for a claim of work, services, material or equipment pursuant to a contract with that community association cannot be enforced by a sale of real estate. The owner may choose to avoid subjecting the real estate to sale by the owner (or contractor) by either: 1.

paying the claimant and obtaining a discharge of lien claim from the claimant, by which the owner will lose the right to challenge this lien claim in a legal proceeding before a court of law; or 2. causing the lien claim to be discharged by filing a surety bond or making a deposit of funds as provided for in section 31 of P.L.1993, c.318 (C.2A:44A-31 ), by which the owner will retain the right to challenge this lien claim in a legal proceeding before a court of law.a.

The amount of a lien claim shall not exceed the unpaid portion of the contract price of the claimant’s contract for the work, services, material or equipment provided.b. Except as set forth in sections 15 and 21 of P.L.1993, c.318 (C.2A:44A-15 and 2A:44A-21 ), and subject to section 7 of P.L.1993, c.318 (C.2A:44A-7 ) and subsection c.

of this section, the lien fund shall not exceed: (1) in the case of a first tier lien claimant or second tier lien claimant, the earned amount of the contract between the owner and the contractor minus any payments made prior to service of a copy of the lien claim; or (2) in the case of a third tier lien claimant, the lesser of: (a) the amount in paragraph (1) above; or (b) the earned amount of the contract between the contractor and the subcontractor to the contractor, minus any payments made prior to service of a copy of the lien claim.c.

A lien fund regardless of tier shall not be reduced by payments by the owner, or community association in accordance with section 3 of P.L.1993, c.318 (C.2A:44A-3 ), that do not discharge the obligations for the work performed or services, material or equipment provided, including, but not limited to:

1. (1) payments not in accordance with written contract provisions;
2. (2) payments yet to be earned upon lodging for record of the lien claim;
3. (3) liquidated damages;
4. (4) collusive payments;
5. (5) use of retainage to make payments to a successor contractor after the lien claim is lodged for record; or

(6) setoffs or backcharges, absent written agreement by the claimant, except for any setoffs upheld by judgment that are first determined by: (a) arbitration or alternate dispute resolution in a proceeding conducted in accordance with section 21 of P.L.1993, c.318 (C.2A:44A-21 ); or (b) any other alternate dispute resolution agreed to by the parties.d.

Subject to subsection c. above, no lien fund exists, if, at the time of service of a copy of the lien claim, the owner or community association has fully paid the contractor for the work performed or for services, material or equipment provided.e. For purposes of a lien fund calculation, the “earned amount of the contract” is the contract price unless the party obligated to perform has not completed the performance in which case the “earned amount of the contract” is the value, as determined in accordance with the contract, of the work performed and services, material or equipment provided.f.

If more than one lien claimant will participate in a lien fund, the lien fund shall be established as of the date of the first of the participating lien claims lodged for record unless the earned amount of the contract increases, in which case the lien fund shall be calculated from the date of the increase.g.

No lien rights shall exist for other than first, second, or third tier lien claimants. Subject to the limitations of sections 3 and 6 of P.L.1993, c.318 (C.2A:44A-3 and 2A:44A-6 ), the lien shall attach to the interest of the owner from and after the time of filing of the lien claim. Except as provided by section 20 of P.L.1993, c.318 (C.2A:44A-20 ), no lien shall attach to the interest acquired by a bona fide purchaser as evidenced by a recordable document recorded or lodged for record before the date of filing of the lien claim.

A lien claim shall not, except as provided by sections 20 and 22 of P.L.1993, c.318 (C.2A:44A-20 and 2A:44A-22 ), have a priority over any mortgage, judgment or other lien or interest in real estate first recorded, lodged for record, filed or docketed.

• A lien claim filed under this act shall be subject to the effect of a Notice of Settlement filed pursuant to P.L.1979, c.406 (C.46:16A-1 et seq.).a.
• A lien claim may be amended for any appropriate reason, including but not limited to correcting inaccuracies or errors in the original lien claim form, or revising the amount claimed because of: (1) additional work performed or services, material, or equipment provided; (2) the release of a proportionate share of an interest in real property from the lien in accordance with section 18 of P.L.1993, c.318 (C.2A:44A-18 ); or (3) the partial payment of the lien claim.

A lien claim may not be amended to cure a violation of section 15 of P.L.1993, c.318 (C.2A:44A-15 ).b. The amended lien claim, which shall be filed with the county clerk, shall comply with all the conditions and requirements for the filing of an original lien claim, including but not limited to the notice requirements of section 7 of P.L.1993, c.318 (C.2A:44A-7 ) and shall be subject to the limitations of sections 9 and 10 of P.L.1993, c.318 (C.2A:44A-9 and 2A:44A-10 ).

• c. The amended lien claim shall be filed in substantially the following form:
• AMENDMENT TO CONSTRUCTION LIEN CLAIM
• TO THE CLERK, COUNTY OF :

1. On (date), the undersigned claimant, (name of claimant) of (address of claimant), filed a CONSTRUCTION LIEN CLAIM in the amount of ($ ) DOLLARS for the value of the work, services, material or equipment provided in accordance with the contract between claimant and (name) as of (date).2.

This construction lien claim was claimed against the interest of (name) as (circle one): owner, unit owner, community association or other party; (if “other,” describe: _) in that certain tract or parcel of land and premises described as Block, Lot, on the tax map of the (municipality) of, County of, State of New Jersey, for the improvement of which property the aforementioned work, services, material or equipment was provided.

(If the claim was against a community association in accordance with section 3 of P.L.1993, c.318 (C.2A:44A-3 ), set forth the name of the community association and the name and location of the property development.) 3. This amends a lien claim which was previously lodged for record on _ _, 20.

and filed with the County Clerk of County on, 20_ and recorded on _,_20_ as No. in Book No., Page, A Notice of Unpaid Balance and Right to File Lien (if any) was previously filed with the County Clerk of on, 20_ and recorded on, 20_ as No. in Book No., Page,4. Amendments to the original claim were recorded in the office of the County Clerk on, 20 as No.

in Book No., Page, (Complete if applicable) 5. Effective the date of the lodging for record of this AMENDMENT TO CONSTRUCTION LIEN CLAIM, the value of the lien is claimed to be in the total amount of ($ ) DOLLARS, inclusive of all prior lien claims or amendments thereof.

1. 6. The work, services, material or equipment provided upon which this Amendment is made are:
2. a.
3. b.
4. c.
5. (etc.)

7. The date of the provision of the last work, services, material or equipment for which payment is claimed is (date).

• 8. The reason for this amendment is _
• CLAIMANT’S REPRESENTATION AND VERIFICATION
• (Same as for lien claim)
• NOTICE TO OWNER OF REAL PROPERTY
• (Same as for lien claim)
• NOTICE TO SUBCONTRACTOR OR CONTRACTOR
• (Same as for lien claim)

a. The county clerk shall provide a book designated as the “Construction Lien Book” in which shall be entered each Notice of Unpaid Balance and Right to File Lien, Amended Notice of Unpaid Balance and Right to File Lien, lien claim and amended lien claim, and discharge, subordination or release of a lien claim or Notice of Unpaid Balance and Right to File Lien presented for filing pursuant to this act.

1. b. The county clerk shall cause marginal notations to be made upon each filed document as follows:
2. (1) upon each Notice of Unpaid Balance and Right to File Lien, the date an amendment to that Notice or discharge thereof, and related lien claim or amendment thereto is filed;
3. (2) upon each lien claim, the date an amendment thereto is filed; and the date a discharge, subordination or release thereof is filed; and
4. (3) upon the affected lien claim or amended lien claim, the date of the filing of the Notice of Lis Pendens pertaining to the real property subject to the lien claim.

c. The failure of the clerk to cause a marginal notation to be made in accordance with subsection b. of this section shall not affect the validity, priority or enforceability of any document filed pursuant to this act.d. The county clerk shall provide and maintain an index book designated as the “Construction Lien Index Book,” setting forth alphabetically, and arranged by owners’ or community associations’ names, and by claimants’ names, each Notice of Unpaid Balance and Right to File Lien, Amended Notice of Unpaid Balance and Right to File Lien, lien claim, amended lien claim, discharge, subordination and release of a lien claim or Notice of Unpaid Balance and Right to File Lien.e.

• Each county clerk shall charge fees for the filing and marginal notation of the documents authorized to be filed by this act as set forth in N.J.S.22A:2-29.a.
• A claimant filing a lien claim shall forfeit all rights to enforce the lien, and shall immediately discharge the lien of record in accordance with section 30 of P.L.1993, c.318 (C.2A:44A-30 ), if the claimant fails to commence an action in the Superior Court, in the county in which the real property is situated, to enforce the lien claim: (1) Within one year of the date of the last provision of work, services, material or equipment, payment for which the lien claim was filed; or (2) Within 30 days following receipt of written notice, by personal service or certified mail, return receipt requested, from the owner, community association, contractor, or subcontractor against whose account a lien claim is filed, requiring the claimant to commence an action to enforce the lien claim.b.

Any lien claimant who forfeits a lien pursuant to this section and fails to discharge that lien of record in accordance with section 30 of P.L.1993, c.318 (C.2A:44A-30 ), shall be liable for all court costs, and reasonable legal expenses, including, but not limited to, attorneys’ fees, incurred by the owner, community association, contractor, or subcontractor, or the total costs and legal expenses of all or any combination of them, in defending or causing the discharge of the lien claim.

The court shall, in addition, enter judgment against the claimant who fails to discharge the lien for damages to any of the parties adversely affected by the lien claim.c. (Deleted by amendment, P.L.2010, c 119 ) d. Any disputes arising out of the improvement which is the subject of a lien claim but which are unrelated to any action to enforce a lien claim may be brought in a separate action or in a separate count in the same action.a.

If a lien claim is without basis, the amount of the lien claim is willfully overstated, or the lien claim is not lodged for record in substantially the form or in the manner or at a time not in accordance with this act, the claimant shall forfeit all claimed lien rights and rights to file subsequent lien claims to the extent of the face amount claimed in the lien claim.

The claimant shall also be liable for all court costs, and reasonable legal expenses, including, but not limited to, attorneys’ fees, incurred by the owner, community association, contractor or subcontractor, or any combination of owner, community association in accordance with section 3 of P.L.1993, c.318 (C.2A:44A-3 ), contractor and subcontractor, in defending or causing the discharge of the lien claim.

The court shall, in addition, enter judgment against the claimant for damages to any of the parties adversely affected by the lien claim.b. If a defense to a lien claim is without basis, the party maintaining the defense shall be liable for all court costs, and reasonable legal expenses, including, but not limited to, attorneys’ fees, incurred by any of the parties adversely affected by the defense to the lien claim.

The court shall, in addition, enter judgment against the party maintaining this defense for damages to any of the parties adversely affected thereby.c. If a lien claim is forfeited pursuant to this section, or section 14 of P.L.1993, c.318 (C.2A:44A-14 ), nothing herein shall be construed to bar the filing of a subsequent lien claim, provided, however, any subsequent lien claim shall not include a claim for the work, services, equipment or material claimed within the forfeited lien claim.d.

For the purpose of this section “without basis” means frivolous, false, unsupported by a contract, or made with malice or bad faith or for any improper purpose. No lien claim under this act or right thereto shall abate by reason of the death of any party in interest and the right to the lien claim may be asserted by the personal representative of a deceased contractor, subcontractor, or supplier against the personal representative of a deceased owner, contractor or subcontractor.a.

All valid liens filed pursuant to this act shall attach to the interest of the owner from the time of filing of the lien claim, subject to this section and sections 3, 6, and 10 of P.L.1993, c.318 (C.2A:44A-3, 2A:44A-6 and 2A:44A-10 ).b. A lien claim validly filed under this act shall have priority over a prior conveyance, lease or mortgage of an interest in real property to which improvements have been made, only if a Notice of Unpaid Balance and Right to File Lien is filed before the recording or lodging for record of a recordable document evidencing that conveyance, lease or mortgage.

The Notice of Unpaid Balance and Right to File Lien shall be filed in substantially the following form: TO THE CLERK, COUNTY OF _: NOTICE OF UNPAID BALANCE AND RIGHT TO FILE LIEN In accordance with the “Construction Lien Law,” P.L.1993, c.318 (C.2A:44A-1 et al.), notice is hereby given that: 1.

(Name of claimant), individually or as a partner of the claimant known as (Name of partnership), or an officer/member of the claimant known as (Name of corporation or LLC) (Please circle one and fill in name as applicable) located at (Business address of claimant) has on (date) a potential construction lien against the real property of (name of owner of property subject to lien), in that certain tract or parcel of land and premises described as Block _, Lot _, on the tax map of the (municipality) of _, County of _, State of New Jersey, in the amount of ($_ ), as calculated below for the value of the work, services, material or equipment provided.

(If claim is against a community association in accordance with section 3 of P.L.1993, c.318 (C.2A:44A-3 ), set forth the name of the community association and the name and location of the property development.) The lien is to be claimed against the interest of the owner, unit owner, or other party, or against the community association (circle one; if “other”, describe: _).2.

• 3. In accordance with the above contract, this claimant performed the following work or provided the following services, material or equipment:
• a._
• b. _

c. _ etc.4. The date of the provision of the last work, services, material or equipment for which payment is claimed is (date.)

1. 5. The amount due for work, services, material or equipment provided by claimant in connection with the improvement of the real property, and upon which this lien claim is based is calculated as follows:
2. A. Initial Contract Price: $ _
3. B. Executed Amendments to Contract Price/Change Orders: $_
4. C. Total Contract Price (A + B) = $_
5. D. If Contract Not Completed, Value Determined in Accordance with Contract of Work Completed or Services, Material or Equipment Provided:_
6. E. Total from C or D (whichever is applicable): $ _
7. F. Agreed upon Credits: $ _
8. G. Amount Paid to Date: $ _
9. TOTAL LIEN CLAIM AMOUNT E – = $_

6. The written contract (is) (is not) (cross out inapplicable portion) a residential construction contract as defined in section 2 of P.L.1993, c.318 (C.2A:44A-2 ).7. This notification has been lodged for record prior or subsequent to completion of the work, services, material or equipment as described above.

The purpose of this notification is to advise the owner or community association and any other person who is attempting to encumber or take transfer of said property described above that a potential construction lien may be lodged for record within the 90-day period, or in the case of a residential construction contract within the 120-day period, following the date of the provision of the last work, services, material or equipment as set forth in paragraph 4 of this notice.

CLAIMANT’S REPRESENTATION AND VERIFICATION Claimant represents and verifies that: 1. I have authority to file this Notice of Unpaid Balance and Right to File Lien.2. The claimant is entitled to the amount claimed herein at the date this Notice is lodged for record, pursuant to claimant’s contract described in the Notice of Unpaid Balance and Right to File Lien.3.

• The work, services, material or equipment for which this Notice of Unpaid Balance and Right to File Lien is filed was provided exclusively in connection with the improvement of the real property which is the subject of this Notice of Unpaid Balance and Right to File Lien.4.
• The Notice of Unpaid Balance and Right to File Lien has been lodged for record within 90 days, or in the case of a residential construction contract within 60 days, from the last date upon which the work, services, material or equipment for which payment is claimed was provided.5.

The foregoing statements made by me are true, to the best of my knowledge.

• Name of Claimant_
• Signed_
• (Type or Print Name and Title)
• SUGGESTED NOTARIAL FOR INDIVIDUAL CLAIMANT:
• STATE OF NEW JERSEY
• COUNTY OF ss:
• On this _ day of _ 20_, before me, the subscriber, personally appeared (person signing on behalf of claimant(s)) who, I am satisfied, is/are the person(s) named in and who executed the within instrument, and thereupon acknowledged that claimant(s) signed, sealed and delivered the same as claimant’s (s’) act and deed, for the purposes therein expressed.
• _
• NOTARY PUBLIC
• SUGGESTED NOTARIAL FOR CORPORATE OR LIMITED LIABILITY CLAIMANT:
• STATE OF NEW JERSEY
• COUNTY OF ss:
• On this _ day of _ 20_, before me, the subscriber, personally appeared (person signing on behalf of claimant(s)) who, I am satisfied is the Secretary (or other officer/manager/agent) of the Corporation (partnership or limited liability company) named herein and who by me duly sworn/affirmed, asserted authority to act on behalf of the Corporation (partnership or limited liability company) and who, by virtue of its Bylaws, or Resolution of its Board of Directors (or partnership or operating agreement) executed the within instrument on its behalf, and thereupon acknowledged that claimant signed, sealed and delivered same as claimant’s act and deed, for the purposes herein expressed.
• _
• NOTARY PUBLIC

c. A claimant electing to file a Notice of Unpaid Balance and Right to File Lien as described above need not serve a copy upon any interested party.d. After the filing of a Notice of Unpaid Balance and Right to File Lien, any person claiming title to or an interest in or a lien upon the real property described in the Notice of Unpaid Balance and Right to File Lien, shall be deemed to have acquired said title, interest or lien with knowledge of the anticipated filing of a lien claim, and shall be subject to the terms, conditions and provisions of that lien claim within the period provided by section 6 of P.L.1993, c.318 (C.2A:44A-6 ) and as set forth in the Notice of Unpaid Balance and Right to File Lien.

• A Notice of Unpaid Balance and Right to File Lien filed under this act shall be subject to the effect of a Notice of Settlement filed pursuant to P.L.1979, c.406 (C.46:16A-1 et seq.).e.
• The Notice of Unpaid Balance and Right to File Lien shall be effective for 90 days or in the case of a residential construction contract claim for 120 days from the date of the provision of the last work, services, material or equipment delivery for which payment is claimed as set forth in paragraph 4 of the Notice of Unpaid Balance and Right to File Lien.f.

The lodging for record or filing of a Notice of Unpaid Balance and Right to File Lien shall not constitute the lodging for record or filing of a lien claim nor does it extend the time for the lodging for record of a lien claim, in accordance with this act.g.

Failure to file a Notice of Unpaid Balance and Right to File Lien shall not affect the claimant’s lien rights arising under this act, to the extent that no conveyance, lease or mortgage of an interest in real property occurs prior to the filing of a Notice of Unpaid Balance and Right to File Lien or lien claim.h.

A Notice of Unpaid Balance and Right to File Lien may be amended by the filing of an Amended Notice of Unpaid Balance and Right to File Lien in accordance with this section.a. Every mortgage recorded before the filing of a lien claim or the filing of a Notice of Unpaid Balance and Right to File Lien in accordance with section 20 of P.L.1993, c.318 (C.2A:44A-20 ), shall have priority as to the land or other interest in real property described and any improvement wholly or partially erected or thereafter to be erected, constructed or completed thereon, over any lien established by virtue of P.L.1993, c.318 (C.2A:44A-1 et al.) to the extent that: (1) the mortgage secures funds that have been advanced or the mortgagee is obligated to advance to or for the benefit of the mortgagor before the filing of the lien claim or Notice of Unpaid Balance and Right to File Lien in accordance with section 20 of P.L.1993, c.318 (C.2A:44A-20); or (2) the mortgage secures funds advanced after the filing of a lien claim or the filing of a Notice of Unpaid Balance and Right to File Lien in accordance with section 20 of P.L.1993, c.318 (C.2A:44A-20), and the funds are applied in accordance with paragraphs (1) through (7) of subsection b.

1. (1) The payments of amounts due to any claimants who have filed a lien claim or a Notice of Unpaid Balance and Right to File Lien;
2. (2) The payment to or the securing of payment by, the party against whose interest the lien claim is filed of all or part of the purchase price of the land covered thereby and any subsequent payment made for the improvements to the land, including but not limited to any advance payment of interest to the holder of the mortgage as required by the mortgagee as a condition of the loan;
3. (3) The payment of any valid lien or encumbrance which is, or can be established as, prior to a lien provided for by this act;
4. (4) The payment of any tax, assessment or other State or municipal lien or charge due or payable at the time of, or within 60 days after, such payment, as required by the mortgagee as a condition of the loan;
5. (5) The payment of any premium, counsel fee, consultant fee, interest or financing charges, or other cost related to the financing, any of which are required by the lender to be paid by the owner, provided that the total of same shall not be in excess of 10 percent of the principal amount of the mortgage securing the loan upon which they are based;
6. (6) The payment to the owner of that portion of the purchase price of the real property on which the improvements are made or to be made which have previously been paid by the owner, exclusive of any interest or any other carrying costs of such real property, provided, however, that at the time of the payment of such funds to the owner, the budget upon which the loan was made indicated that the amount of the loan is not less than the total of: (a) the purchase price of the real property, (b) the cost of constructing the improvements, and (c) any cost listed in paragraphs (3), (4), and (5) of subsection b. of this section; or

(7) An escrow in an amount not to exceed 150% of the amount necessary to secure payment of charges described in paragraphs (1), (3), (4) and (5) of subsection b. of this section.c. Nothing in P.L.1993, c.318 (C.2A:44A-1 et al.) shall be deemed to supersede the mortgage priority provisions of 46:9-8 or diminish the effect of a Notice of Settlement filed pursuant to P.L.1979, c.406 (C.46:16A-1 et seq.).a.

The amount due a lien claimant shall be paid only after the lien claim has been established by judgment, or, in the case of an execution sale, only to those lien claimants whose lien claims were filed before application was made to the court for distribution of the sale proceeds. All lien claims established by judgment are valid claims that shall be concurrent and shall be paid as provided in subsection c.

of this section.b. The sheriff or other officer conducting an execution sale authorized by section 24 of P.L.1993, c.318 (C.2A:44A-24 ) shall pay the proceeds to the clerk of the Superior Court and the Superior Court shall provide proper disposition of sale proceeds to the persons entitled thereto under P.L.1993, c.318 (C.2A:44A-1 et al.).c.

The Superior Court shall order the distribution of a lien fund, after its calculation in accordance with section 9 of P.L.1993, c.318 (C.2A:44A-9 ), in the following manner: (1) If there are first tier lien claimants, the lien fund shall be allocated in amounts equal to their valid claims. If the total of those claims would exceed the maximum liability of the owner or community association as provided by section 9 of P.L.1993, c.318 (C.2A:44A-9 ), the allocations shall be reduced pro rata so as not to exceed that maximum liability; (2) From the allocation to each first tier lien claimant, amounts shall be allocated equal to the valid claims of second tier lien claimants whose claims derive from contracts with that first tier lien claimant.

If the total of the claims is less than the allocation to that first tier lien claimant, the first tier lien claimant shall be paid the balance. If the total of the claims exceeds the allocation to that first tier lien claimant, the second tier claimants’ allocations shall be reduced pro rata so as not to exceed that first tier lien claimant allocation; (3) From the allocation to each second tier lien claimant, amounts shall be allocated equal to the valid claims of third tier lien claimants whose claims derive from contracts with that second tier lien claimant.

• If the total of the claims is less than the allocation to that second tier claimant, the second tier lien claimant shall be paid the balance.
• If the total of the claims exceeds the allocation to that second tier lien claimant, the allocation to the third tier lien claimants shall be reduced pro rata so as not to exceed that second tier lien claimant allocation; (4) If there are no first tier lien claimants, the lien fund for second tier lien claimants shall be allocated in amounts equal to that second tier’s valid claims.

If the total of the claims of any group of second tier lien claimants exceeds the lien fund for that group of claimants as provided by section 9 of P.L.1993, c.318 (C.2A:44A-9 ), the allocations shall be reduced pro rata so as not to exceed that lien fund; and (5) If there are no first or second tier lien claimants, the lien fund for third tier lien claimants shall be allocated in amounts equal to that third tier’s valid claims.

• If the total of the claims of any group of third tier lien claimants exceeds the lien fund for that group of claimants as provided by section 9 of P.L.1993, c.318 (C.2A:44A-9 ), the allocations shall be reduced pro rata so as not to exceed that lien fund.a.
• Subject to the requirements of section 14 of P.L.1993, c.318 (C.2A:44A-14 ), and in the case of lien claims arising from residential construction contracts the additional requirements of sections 20 and 21 of P.L.1993, c.318 (C.2A:44A-20 and 2A:44A-21 ), a lien claim arising under P.L.1993, c.318 (C.2A:44A-1 et al.) shall be enforced by a suit commenced in the Superior Court within one year of the date of the last provision of work, services, material or equipment, payment for which the lien claim was filed.

Venue shall be laid in the county in which the real property affected by the lien claim is located.b. A lien claimant shall join as party defendants the owner or community association, if applicable, in accordance with section 3 of P.L.1993, c.318 (C.2A:44A-3 ), contractor or subcontractor alleged to have failed to make payments for which the lien claim has been filed and any other person having an interest in the real property that would be adversely affected by the judgment.

1. The court shall order joinder of necessary parties or determine if it is appropriate for the suit to proceed if party defendants are not joined.c.
2. The court shall stay the suit to the extent that the lien claimant’s contract or the contract of another party against whose account the lien claim is asserted provides that any disputes pertaining to the validity or amount of a lien claim are subject to arbitration or other dispute resolution mechanism.d.

Upon commencement of the suit, the lien claimant shall cause a Notice of Lis Pendens to be filed in the office of the county clerk or register pursuant to N.J.S.2A:15-6 et seq.e. A party to a suit to enforce a lien claim shall be entitled to assert any defense available to any other party in contesting the amount for which a claimant seeks to have the lien reduced to judgment.f.

The judgment to be entered in a suit to enforce a lien claim shall (1) establish the amount due to the lien claimant; and (2) direct the public sale by the sheriff or other such officer as the court may direct of the real property and improvement affected by the lien. The proceeds of the sale shall be distributed in accordance with section 23 of P.L.1993, c.318 (C.2A:44A-23 ).

If funds are realized at the sale in an amount greater than the lien fund, the surplus funds shall be distributed in accordance with law.g. Nothing in this act shall bar recovery of money damages pursuant to a lien claim arising under P.L.1993, c.318 (C.2A:44A-1 et al.).h.

A judgment obtained against a community association that is unpaid may be enforced by assessment against unit owners as they would be assessed for any other common expense, after reasonable notice, and in a manner directed by the court. In ordering assessments, the court shall be guided by the master deed, bylaws or other document governing the association.

A judgment shall not be enforced by the sale of any common elements, common areas or common buildings or structures of a real property development.i. Upon resolution of the suit other than by the entry of final judgment in favor of the plaintiff in accordance with subsection f.

• a. When a lien claim has been filed and the claim has been paid, satisfied or settled by the parties or forfeited by the claimant, the claimant or claimant’s successor in interest or attorney shall, within 30 days of payment, satisfaction or settlement, or within 7 days of demand by any interested party, file with the county clerk a certificate, duly acknowledged or proved, directing the county clerk to discharge the lien claim of record, which certificate shall contain:
• (1) The date of filing the lien claim;
• (2) The book and page number endorsed thereon;
• (3) The name of the owner of the land, or the community association, if applicable, named in the notice;
• (4) The location of the property; and
• (5) The name of the person for whom the work, services, equipment or materials was provided.

b. If the claimant shall fail or refuse to file this certificate, as set forth in subsection a. of this section, then any party in interest may proceed in a summary manner by filing an order to show cause in accordance with the Rules of Court adopted by the Supreme Court of New Jersey.

A judge of the Superior Court may, upon good cause being shown, and absent receipt of written objections and grounds for same, order the lien claim discharged on the return date of the order to show cause. The county clerk shall thereupon attach the certificate or order to the original notice of lien claim on file and shall note on the record thereof “discharged by certificate” or “discharged by court order,” as the case may be and any lien foreclosure action shall be dismissed with prejudice.c.

Any party in interest may proceed to discharge a lien claim on the ground that it is without factual basis by filing an order to show cause in the same manner as set forth in subsection b. of this section.d. In those circumstances in which the lien claim has been paid in full, the lien claimant has failed to file a lien claim discharge pursuant to this section, and at least 13 months have elapsed since the date of the lien claim, the owner or community association may, in accordance with section 33 of P.L.1993, c.318 (C.2A:44A-33 ) submit for filing a duly acknowledged discharge certificate substantially in the form provided by subsection a.

1. OWNER (OR COMMUNITY ASSOCIATION) AFFIDAVIT OF PAYMENT TO DISCHARGE LIEN CLAIM
2. TO THE CLERK, COUNTY OF
3. The undersigned, being duly sworn upon the undersigned’s oath, avers as follows:

1. I am an owner of real property located at (address ofproperty subject to lien), in that certain tract or parcel of land and premises described as Block _, Lot _, on the tax map of the (municipality) of _, County of _, State of New Jersey. (In the case of a community association, I am an (officer/manager/agent) of the community association, (name of community association) for property located at (location of property development).) 2.

On or about (date), I caused to be sent to (name of contractor or subcontractor to whom payment was made), located at (address designated for payment by the filed lien claim form), the final payment in the amount of ($ ) in full satisfaction of a certain lien claim dated (date) which was filed by (name of lien claimant) against the real property designated in paragraph 1, on (date) in the office of the county clerk of the County of (name of county) in Construction Lien Book _, Page _.3.

At least 13 months have elapsed since the date of the lien claim and 90 days before filing this affidavit, I mailed or caused to be mailed by certified mail to the last known address of the lien claimant as set forth in the filed lien claim form written notice of my intention to file a discharge certificate with respect to the lien claim.

• Name of Owner/Community Association
• Signed _
• (Type or Print Name and Title)
• NOTARIAL FOR INDIVIDUAL OWNER
• STATE OF NEW JERSEY
• COUNTY OF ss:
• On this _ day of _ 20_, before me, the subscriber, personally appeared (name of owner/community association) who, I am satisfied, is/are the person(s) named in and who executed the within instrument, and thereupon acknowledged that the owner/community association signed, sealed and delivered the same as the owner’s/community association’s act and deed, for the purposes therein expressed.
• _
• NOTARY PUBLIC
• NOTARIAL FOR CORPORATE OR LIMITED LIABILITY OWNER/COMMUNITY ASSOCIATION:
• STATE OF NEW JERSEY
• COUNTY OF ( ) ss:
• On this _ day of _ 20_, before me, the subscriber, personally appeared (person signing on behalf of owner/community association) who, I am satisfied is the Secretary (or other officer/manager/agent) of the Corporation (partnership or limited liability company) named herein and who by me duly sworn/affirmed, asserted authority to act on behalf of the Corporation (partnership or limited liability company) and who, by virtue of its Bylaws, or Resolution of its Board of Directors (or partnership or operating agreement) executed the within instrument on its behalf, and thereupon acknowledged that the owner/community association signed, sealed and delivered same as owner’s/community association’s act and deed, for the purposes herein expressed.
• _
• NOTARY PUBLIC

e. Any lien claimant who fails to discharge a lien claim of record pursuant to this section shall be liable for all court costs, and reasonable legal expenses, including, but not limited to, attorneys’ fees, incurred by the owner, community association, the contractor, or subcontractor, or any combination of owner, community association, contractor and subcontractor, as applicable, to discharge or obtain the discharge of the lien, and in addition thereto, the court shall enter judgment against the claimant for damages to any or all of the parties adversely affected by the failure to discharge the lien.f.

Upon discharge of record in all cases, the party who filed the enforcement action shall cause the Notice of Lis Pendens to be cancelled or discharged of record pursuant to N.J.S.2A:15-6 et seq. Any party who filed the enforcement action who fails to cancel or discharge the lis pendens of record pursuant to this section shall be liable for all court costs, and reasonable legal expenses, including but not limited to, attorneys’ fees, incurred by the owner, community association, the contractor, or subcontractor, or any other interested party, or any combination thereof, as applicable, to obtain the cancellation or discharge of the lis pendens, and in addition thereto, the court shall enter judgment against the claimant for damages to any or all of the parties adversely affected by the failure to cancel or discharge the lis pendens.a.

When a lien claim is filed against any improvement and land under this act, the owner, community association in accordance with section 3 of P.L.1993, c.318 (C.2A:44A-3 ), contractor or subcontractor may execute and file with the proper county clerk a bond in favor of the lien claimant, with a surety company, duly authorized to transact business in this State, as surety thereon in an amount equal to 110% of the amount claimed by the lien claimant.

The amount of the bond shall be equal to 110% of the amount claimed by the lien claimant but in the case of a lien claim arising from a residential construction contract, no greater than the earned amount of the contract between the owner and the contractor as determined by the arbitrator in accordance with paragraph (4) of subsection b.

of section 21 of P.L.1993, c.318 (C.2A:44A-21 ). The bond shall be filed in accordance with the language set forth in subsection d. of this section, along with payment in the amount of $25, conditioned upon the payment of any judgment and costs that may be recovered by the lien claimant under this claim.

Any form of bond proffered that contains language inconsistent with the language set forth in subsection d. of this section shall be the basis for a cause of action to strike such language from the form of bond.b. As an alternative, the owner, community association, contractor or subcontractor may deposit with the clerk of the Superior Court of New Jersey, funds constituting an amount equal to 110% of the amount claimed by the lien claimant, but in the case of a lien claim arising from a residential construction contract, no greater than the earned amount of the contract between the owner and the contractor as determined by the arbitrator in accordance with paragraph (4) of subsection b.

of section 21 of P.L.1993, c.318 (C.2A:44A-21 ). The deposit shall be made along with payment in the amount of $25, conditioned upon the payment of any judgment and costs that may be recovered by the lien claimant under this claim. The deposit may be made without the necessity of commencing any legal action.

1. The written receipt provided by the court clerk for the deposit made may be filed with the county clerk as evidence of that deposit.c.
2. Any surety bond filed with the county clerk under this section shall be discharged, and any deposit with the clerk of the Superior Court shall be returned to the depositor, without court order, upon presentment by the owner, community association, contractor or subcontractor of any of the following: (1) a duly acknowledged certificate as provided in paragraph (2) or (3) of subsection a.

of section 33 of P.L.1993, c.318 (C.2A:44A-33 ); (2) an order of discharge as provided in paragraph (4) of subsection a. of section 33 of P.L.1993, c.318 (C.2A:44A-33 );

1. (3) a judgment of dismissal or other final judgment against the lien claimant; or
2. (4) a true copy of a Stipulation of Dismissal, with prejudice, executed by the lien claimant or its representative in any action to foreclose the lien claim which is subject to the surety bond or deposit.
3. d. The bond shall be filed in substantially the following form:
4. (Name of Bond Company)
5. (Bond No.) Bond Amount $_
6. BOND DISCHARGING CONSTRUCTION LIEN
7. WHEREAS, on the (date), (name of claimant) (hereinafter “Lienor”) filed a Construction Lien for the sum of (amount written out) ( $ ), in the office of the Clerk of the County of (name of county where lien claim was filed), (hereinafter “Clerk”), against the real property of owner, (name of owner), or community association (or name of community association) and the tenancy interest of Lot (#), Block (#), (address of property or name and location of the property development in the case of a community association) on the Tax Map of Township of (name of municipality), County of (name of county), State of New Jersey as more fully set forth in the notice of lien, a true copy of which is attached hereto, and which lien was filed (date lien claim was filed) in book (#), page (#).

WHEREAS, in accordance with the “Construction Lien Law,” P.L.1993, c.318 (C.2A:44A-1 et al.), the Principal is permitted to file a bond for 110% of the lien amount, which would be a total bond penalty of (amount written out) ($ ) (hereinafter “Penal Sum”).

• NOW THEREFORE, in consideration of the discharge of said lien by the Clerk, the Principal and (name of bond company) as surety, having an office at (address of bond company) and authorized to do business as a surety, do hereby pursuant to the statute provided, in such case made and jointly and severally undertake and become bound to the Clerk in an amount not exceeding the Penal Sum, ($ ) conditioned for the payment of any and all judgments that may be rendered against said property in favor of the Lienor, its successors or assigns, in any action or proceedings to enforce the alleged lien as described.
• Sealed with our seal and dated the day of (month), (year)
• Witness: _ (Name of principal)
• By: (Signature)
• Title: (Printed name and title of signatory)
• Witness: _ (Name of Bond Company)
• By: (Signature)
• Title: (Printed name and title of signatory)

When the bond, deposit or any combination thereof, authorized by section 31 of this act, is properly filed or deposited, the improvements and land described in the lien claim shall thereupon be released and discharged from the claim and no execution shall issue against the improvements and land.

1. a. A lien claim shall be discharged of record by the county clerk:
2. (1) Upon the execution and filing with the county clerk of a surety bond, or the deposit of funds with the clerk of the Superior Court of New Jersey, in favor of the claimant in an amount equal to 110% of the amount of the lien claim; or
3. (2) Upon receipt of a duly acknowledged certificate, discharging the lien claim from the claimant having filed the lien claim, or the claimant’s successor in interest, or attorney; or

(3) Pursuant to the filing of an owner’s or community association’s discharge certificate in accordance with section 30 of P.L.1993, c.318 (C.2A:44A-30 ), provided that 90 days prior to the filing of the affidavit, substantially in the form set forth in section 30 of P.L.1993, c.318 (C.2A:44A-30 ), the lien claimant is notified by certified mail at the lien claimant’s last known address of the owner’s or community association’s intent to file a discharge certificate and no written communication from the lien claimant denying or disputing payment in full of the lien claim is filed with the county clerk and served on the owner or community association; or (4) Pursuant to an order of discharge by the court.b.

When judgment of dismissal or final other judgment against the lien claimant is entered in an action to enforce the lien claim under this act and no appeal is taken within the time allowed for an appeal, or if an appeal is taken within the time allowed for an appeal, or if an appeal is taken and finally determined against the lien claimant, the court before which the judgment was rendered, upon application and written notice to the lien claimant as the court shall direct, shall order the county clerk to enter a discharge of the lien claim.c.

If an appeal is taken by the claimant, the claim shall be discharged unless the claimant posts a bond, in an amount to be determined by the court, to protect the owner or community association from the reasonable costs, expenses and damages which may be incurred by virtue of the continuance of the lien claim encumbrance.d.

Upon discharge of record of the lien claim, unless the action for enforcement also involves claims, by way of counterclaim, cross claim or interpleader, arising out of or related to the improvements that are the subject of the lien claim in which the owner or community association is an interested party, the court shall also order that the owner or community association no longer be a party to an action to enforce the lien claim, and the surety issuing the bond shall be added as a necessary party.e.

Discharge of record of a lien claim will automatically discharge of record the Notice of Unpaid Balance and Right to File Lien filed in connection therewith. A discharge, subordination or release of a lien claim or Notice of Unpaid Balance and Right to File Lien, a receipt of payment of a lien claim, or any order of the court discharging or releasing a lien claim, shall recite the book and page number of the original record of the lien claim, and a full description of the property discharged or released.

• The county clerk may refuse to discharge, release or satisfy a lien claim or file a receipt of payment of a lien claim unless the provisions of this section have been satisfied.
• A person who fraudulently deprives a person entitled to the benefits of this act shall be liable to that person for any damages resulting therefrom.

Waivers of construction lien rights are against public policy, unlawful, and void, unless given in consideration for payment for the work, services, materials or equipment provided or to be provided, and such waivers shall be effective only upon and to the extent that such payment is actually received.

How long does a lien stay on your property in Michigan?

2809. (1) Unless subsection (2) or (3) applies, a judgment lien expires 5 years after the date it is recorded. (2) Unless subsection (3) applies, if a judgment lien is rerecorded under subsection (4), the judgment lien expires 5 years after the date it is rerecorded.

Can a contractor put a lien on my house with no contract in Ontario?

Traditional Construction Pyramid – The laws are slightly different for each province as to hold back and the length of time the money is to be held. For our purposes, we will be using the definitions as set out in the Ontario Construction Lien Act. Ontario’s Construction Lien Act establishes a system of lien and hold-back rights and trust provisions to provide financial protection to those who supply services or materials to a construction project.

Anyone who provides material or labour to your property has the right to place a lien. For whatever reason, a lien was placed, you, as the landowner, is ultimately responsible. Even if a contractor tells you that he/she will be accountable for any liens when it gets to court, the law makes you ultimately responsible.

Here are some scenarios: The foundation contractor subs out the excavation of’ the foundation. The excavation contractor hires a couple of labourers to do some hand shoveling and other work. After the first day, the workers get fired for loafing on the job, and the contractor does not pay them.

1. It’s not a problem for either the foundation or excavation contractors.
2. The problem is the homeowners because the laborers can place a lien for payment against the property.
3. The same holds true for the plumber that didn’t pay for the material supplied to do the rough-in.
4. The supplier can place a lien against your property for money owed by the plumber.

If, for example, you assume that the drywall finishers quoted on texturing the ceilings, and they think they didn’t, and you threaten to withhold his money until the ceilings are textured, they can place a lien against your property for non-payment.

How long does a lien stay on your property in Ontario?

After a Lien is Filed What happens after a lien is filed depends on the customer and other factors. There are several situations that can potentially occur such as: 1. Your customer decides to pay the account and you can have the lien removed In this case, the lien process is very straight forward.

First you should wait until your customer’s funds have cleared your bank account or you should request certified funds to make sure payment is final. Once you have confirmed payment you can request Lien-Pro to discharge your lien. In each province the time it takes to process a discharge and receive confirmation of its removal can vary.

For additional information, visit our page on,

2. Your customer acknowledges the lien being in place but does not want to pay 3. You are ignored entirely 4. You are sent a “Notice to Prove Lien” or Notice to Lienholder to Take Action 5. Money is paid into Court 6. Money is paid into a lawyer’s trust account

If your customer has acknowledged that the lien is in place but still refuses to pay the probability of receiving payment from your lien is low. Each province has different rules about the time limit of a lien. In Alberta, for example, your lien is valid for 180 days from the date the lien was placed.

In Ontario, liens are only valid for 90 days from the date of last on site working. If your customer refuses to pay within the first 30-60 days, legal action or collections may be an additional action you want to take to help enforce your lien. As stated in number 2, if your customer refuses to acknowledge your lien the likelihood of receiving payment from your lien is low.

In this case, you will likely want to pursue alternative options in order to resolve your account i.e. collections, legal action, small claims court, etc. In some situations your customer may dispute the validity of your lien. If this happens, your customer must send you via registered mail, a “Notice to Prove Lien” or Notice to Lienholder to take Action.

This notice outlines your customer’s request for you to prove your lien by beginning legal action. Generally you have 15 days from the date you receive the notice to respond. In other cases, the timeline to prove your lien may be longer. The timeline to begin legal action will be dictated in the notice you have received.

If you go ahead and prove your lien, a lawyer will be required in order to begin legal action. Sometimes money can be paid into court in order to have your lien removed. In this case, your customer must pay the face value of the lien plus costs typically 10-15% into court in order to have the lien discharged.

1. This generally happens when a large jobsite is liened and the presence of the lien is holding up work or the release or further funds.
2. For example, if you placed a lien against a large condominium project, the general contractor will not be able to receive money from the bank until your lien is dealt with.

If money isn’t released, work cannot continue. By paying money into court your client shows they have the funds available; however, they may still dispute your claim. If money is paid into court you must prove the validity of your lien in order to receive the funds.

Money paid into court does not guarantee that you will receive it and can take time to be released. Like paying money into court, your customer can pay the monies owed into their lawyer’s trust account. This option is used when your customer would like to have the lien removed; however, they may not want to give you the funds directly prior to the lien being removed.

In this case, Lien-Pro is generally in contact with your customer’s lawyer and we provide “Discharge in Trust” services. When a “Discharge in Trust” is done, proof of the lien’s removal must be given prior to the funds being released. This is a very easy option to use if your customer is hesitant about paying funds to you directly and not having the lien removed.

1. After you place a lien, the outcome can always vary,
2. Some liens are paid out right away, while others simply sit on a property untouched.
3. Prior to filing a lien it is difficult to determine which scenario will apply to you.
4. Regardless if your situation has a good or bad outcome we can assist you the whole way and our knowledgeable staff can help you find the best remedy.

and can answer any questions you may have on what to expect when a lien is filed, : After a Lien is Filed

How do you avoid a construction lien in Florida?

Understanding the Operation and Enforcement of the Florida Construction Lien Law The Construction Lien Law, formerly known as the Mechanic’s Lien Law, has served as a source of confusion to owners, contractors, suppliers and materialman that seek to enforce its provisions.

1. As outlined in Chapter 713, Florida Statutes, the Construction Lien Law established the ground rules for enforcing a construction lien on real property.
2. The lien law authorizes those that furnish labor and material to improve real property as well as those that perform professional services, such as architects, landscape architects, engineers, interior designers, land surveyors and mappers to file a lien as security for payment.

By following the Construction Lien Law, owners also benefit by being assured that the total payments made to the general contractor will not exceed the original price. This article will discuss certain basic issues relating to the operation and enforcement of the Construction Lien Law.

1. What Property Can Be Liened? Liens can only attach to private property.
2. Federal, state, county and municipal property is exempt from the operation of the Construction Lien Law.
3. Frequently, contractors that perform “tenant improvements” may lien property to the extent of the landlord’s interest.
4. However, the landlord may exempt his property interest from liens if the lease entered into between the landlord and tenant prohibits such liability.

The exemption is evidenced, by a Notice, recorded in the public records of the county where the property is located. Accordingly, contractors performing tenant improvements should first ascertain whether such an exemption has been recorded by the landlord.

When Must the Lien Be Recorded? A Claim of Lien must be recorded within ninety (90) days from the date the lienor last furnished labor or materials to the project. It is significant to note that returning to a project to perform inconsequential work, such as minor punchlist type repairs, may not extend the ninety (90) days from the last date that meaningful work was performed.

A copy of the Claim of Lien must be served on the owner within fifteen (15) days from the date it is recorded. Thereafter, a lienor must file a lawsuit to foreclose the Claim of Lien within one (1) year from the date it is recorded unless a “Notice of Contest of Lien” is served on the lienor by the owner.

1. A “Notice of Contest” shortens the statute of limitations to sixty (60) days after it is recorded.
2. If a lienor fails to file a lawsuit within one (1) year of filing a Claim of Lien or sixty (60) days from recording a Notice of Contest, the Claim of Lien is subject to dismissal.
3. It is significant to note that the Construction Lien Law prohibits a lienor from waiving its right to file a lien in advance of performing the work or furnishing materials to improve real property.

Licensing Requirements The Construction Lien Law only permits a licensed contractor, subcontractor or sub-subcontractor to lien property. Upon receipt of a Claim of Lien, the owner should ascertain whether the lienor was properly licensed to perform work.

Confirmation can be acquired by contacting the appropriate licensing authority, such as the Florida Construction Industry Licensing Board. If not licensed, the lien can be declared invalid and unenforceable. Notice to Owner A “Notice to Owner” is a document furnished by any person that is not in privity of contract with the owner.

This document advises the owner as to the identity of all persons that have furnished labor and material to improve his property. The owner can protect himself from paying twice for improvements to his property by requiring a contractor to furnish releases of lien from all persons that served Notices to Owner or alternatively, by requiring the general contractor to submit a partial payment affidavit.

A partial payment affidavit will certify to the owner that all potential lienors have been paid to the extent payments have been made by the owner to contractor. A Notice to Owner must be served on the owner within forty-five (45) days from the date that the lienor first furnished labor and/or materials to the project.

Failure to provide a Notice to Owner will preclude that particular lienor from placing a lien on the owner’s property. Upon receipt of a Claim of Lien, check your records to ascertain whether a Notice to Owner has been furnished to you. If a Notice to Owner has not been furnished or if it was filed in excess of forty-five (45) days from the date a lienor first furnished labor and material to the project, then the Claim of Lien may be subject to attack.

Notice of Commencement A Notice of Commencement is a recorded statement executed by the owner. The Notice of Commencement identifies the name and address of the owner and requires that all persons that furnish labor and materials to send a Notice to Owner. By recording a Notice of Commencement, the owner can require the general contractor to supply releases of lien from all persons that have served a “Notice to Owner.” Construction must be commenced within ninety (90) days from the date that the Notice of Commencement had been recorded.

The Notice of Commencement is effective for one (1) year after it is recorded unless otherwise provided in the Notice. To the extent that a recorded Notice of Commencement is not posted on the job site by the owner, the municipal building department that issued a building permit, may not approve the first inspection which occurs seven (7) days after the building permit is issued.

In the event a construction loan exists, a lender must, prior to disbursement of any construction funds to the contractor, record a Notice of Commencement with the clerk’s office. The failure of a lender to record a Notice of Commencement renders the lender liable to the owner for all damages sustained by the owner as a result of the failure to record it.

Liability may result to the owner if construction funds are disbursed to the contractor and a subcontractor is owed money. If a Notice of Commencement was recorded, the lender and owner would have received a “Notice to Owner” from that subcontractor. Consequently, the lender would not have disbursed funds to the contractor without first acquiring a release of lien from the subcontractor.

Absent a Notice of Commencement, the owner may end up paying twice for the same work; once to the contractor and thereafter to the subcontractor to satisfy its Claim of Lien. Practical Tips to Avoid Problems Pursuant to the Construction Lien Law Owners can protect their property from liens by requesting the general contractor to furnish proof that all laborers, materialmen and suppliers have been paid.

Requiring the general contractor to furnish partial and final releases of lien to the owner will prevent those persons from placing liens on the owner’s property because of non-payment by the general contractor. For each request for payment, the contractor should be required to issue a sworn certification to the owner which states as follows: No known construction, supplier, subcontractor or materialmen’s liens are outstanding at the date of this requisition, that all due and payable bills with respect to the work have been paid to date or are included in the current application, and, except, for such bills not paid but so included, there is no known basis for the filing of any liens on the work, that such liens from all subcontractors, suppliers and materialmen have been obtained in such form as to constitute an effective waiver of the lien under the laws of the State of Florida.” The foregoing provision should be included in each request for payment submitted by a contractor.

the nature of labor and services performed; the nature of labor and service to be performed; a description of materials furnished; the amount paid on account to date; the amount due; the amount to become due.

The failure of a lienor to respond in thirty (30) days after demand, or should the response be false, the lienor will be deprived of his lien rights. Similarly, a lienor may request information and documents from the owner such as payment bonds, direct contracts with others for improvements to the property.

• Should the owner fail to respond within thirty (30) days, attorney’s fees will not be recoverable should the owner prevail against the lienor in a suit to foreclose a Claim Of Lien.
• When the contractor requests final payment, including retainage, a Final Contractor’s Affidavit must be submitted.
• The Final Contractor’s Affidavit lists all money due to potential lienors that have not been paid.

At that point, the owner may elect to demand in writing that the contractor pay the outstanding sums due or alternatively, pay the listed subcontractor a pro-rata portion (based upon the remaining contract balance) within ten (10) days from the date that the owner serves his written demand for payment to the contractor.

1. Conclusion The Construction Lien Law is confusing and requires careful consideration when pursuing enforcement of a lien and paying those that furnish labor and materials to improve real property.
2. As required by Chapter 713, Florida Statutes, timetables established for recording the Notice of Commencement, serving Notices to Owner, recording and foreclosing on a Claim of Lien must be followed for a lien may be declared invalid.

By following the Construction Lien Law, owners can be assured that upon completion of construction and payment of the contract price, your property will be free and clear of all liens. : Understanding the Operation and Enforcement of the Florida Construction Lien Law

How do you remove a construction lien in Florida?

Page 2 – If you hired a to do work on your Florida home and have since discovered that he or she has filed a mechanic’s lien on your home for non-payment, we understand that you may be feeling confused and at a loss as to what to do. Whatever your reason for not paying the contractor might have been, a mechanic’s lien is usually not the way to solve the issue.

1. Usually, a mechanic’s lien is not effective unless you try to sell your home or profit off your home in some way.
2. Also, a mechanic’s lien becomes void after 90 days if the contractor fails follow through with the lien—meaning, he or she fails to file a lawsuit for non-payment.
3. However, just because a lien becomes void does not mean that you are no longer susceptible to its powers.

If you want to remove a lien from your property, you need to do one of two things: 1) have the contractor record a release of the lien or 2) file an appeal to have the lien released. At the office of Edward J. Jennings, P.A., our Fort Lauderdale real estate lawyers can advise you on what to do if a mechanic’s lien is placed on your home and how you can go about removing it.

• Demand That the Contractor Release the Mechanic’s Lien If you hope to have the contractor release the mechanic’s lien on your home, there are specific steps you need to follow.
• First, you need to notify the contractor of your intent to appeal, which you can do in one of the following ways: 1) Mail via certified, express, registered, or overnight mails; 2) personally delivery; 3) leave the notice at the contractor’s home or business with an adult person and mailing a second notice to the same address regarding the first notice.

Once a notice is delivered, the contractor has ten days to respond; if the contractor either refuses to release the lien or doesn’t respond, you can file a petition. Filing a Petition With the Courts If you decide to file an appeal with the courts, it is imperative that you understand the laws and how the process works.

• Because the process takes about 30 days on average, there is not much time for most homeowners to brush up on real estate law.
• For this reason, it is always best to hire a knowledgeable real estate attorney who is armed with the knowledge necessary to make a case on your behalf and get the ball rolling.

After the hearing, the judge has another 30 days to make a decision. If the judge makes a decision in your favor, the lien will be released and you can then proceed to seek reimbursement for your attorney fees. Do not forget to file the judge’s order for the release with your county recorder’s office, as that is the office that keeps all records of homes in your area.

How do construction liens work in Florida?

If contractors and suppliers don’t get paid on a construction project in Florida, they can file a lien to secure payment. A mechanics lien is a legal tool that provides the unpaid party with a security interest in the property.

Who can file a construction lien NJ?

THE PARTY ENTITLED TO A CONSTRUCTION LIEN A contractor, subcontractor, or supplier that provides work, services, materials, or equipment to improve privately owned real property may claim a lien on the privately owned real property to secure payment (N.J.S.A.2A:44A-3).

What is the general limitation of time a contractor must file a lien within?

Skip to content Brian C. Tokarz One issue that frequently arises in construction projects is the need to file a construction lien. Generally speaking, a construction lien is a mechanism by which general contractors, subcontractors, architects, suppliers and certain other individuals involved in construction projects can secure payment for the labor, services and/or materials that they performed or provided as part of the improvement of real estate.

Depending on the person or entity seeking to perfect the construction lien and the type of project at issue, Wisconsin law has different procedures that a claimant must follow before the lien can be perfected. My goal here today is to provide you with an overview of how a general contractor can perfect a construction lien on a privately funded construction project.

Thus, the following information does not apply to subcontractors or suppliers, or for projects involving payment bonds. Separate procedures apply in those situations. What is a “general contractor” for purposes of Wisconsin’s lien law? The statute uses the term “prime contractor” instead of “general contractor” and defines it as “A person, other than a laborer, but including an architect, professional engineer, construction manager, surveyor, or other service provider, employed by the owner, who enters into a contract with an owner of land,

to improve the land” or “an owner of land who acts personally as prime contractor in improving such land.” Thus, these rules are not limited to “general contractors” as that term is traditionally understood in the industry, but also includes such persons as architects if they contract directly with the owner.

If one qualifies as a general contractor under the statute, they must include in their written contract a notice of lien rights. The statute includes particular language that must be used in the notice, which essentially notifies the owner that persons or entities such as subcontractors who provide labor, materials or services for the project may have lien rights on the building and land if the general contractor is not paid.

If there is no written contract for the project, the general contractor must provide the notice to the owner within ten days after the first labor, services or materials are performed or provided. However, the general contractor does not have to provide the owner with this initial notice if the project is for greater than four family units if the project is wholly residential or if the project is partly or wholly non-residential.

In other words, this initial notice of lien rights is not necessary if it is a commercial project or a larger residential project. Nevertheless, the better practice is to include this language in all contracts regardless of whether the notice is required for the particular project.

• If the general contractor satisfies the notice of lien rights requirement, they can file a construction lien against the owner’s property if the general contractor is not paid for their work.
• There are two deadlines that the general contractor must meet before they can perfect a construction lien.
• It is of critical importance for the general contractor to be aware of these deadlines, because failure to meet them will result in the general contractor’s loss of lien rights.

If so, the general contractor might not have a means to collect from the owner for the work they performed on the property in the event that the owner has no other assets to collect on, or is judgment proof. General Contractor Deadlines Serve the owner with a “notice of intent to file lien” at least 30 days before filing the lien.

File the lien within six months of the date that the general contractor last performed labor, services or materials for the project. First, the general contractor must serve the owner with a “notice of intent to file lien” at least 30 days before filing the lien. The notice must be served on the owner personally or via registered or certified mail; standard U.S.

Mail or e-mail does not suffice. The purpose of this requirement is to give the owner notice and sufficient time to make payment to prevent a lien being placed on their property. Second, the general contractor must file the lien within six months of the date that the general contractor last performed labor, services or materials for the project.

Thus, the time limit for perfecting a construction lien is effectively five months after the general contractor last performed labor, services or materials for the project, because the general contractor cannot file their lien unless they first serves the owner with the “notice of intent to file lien,” which must be done at least thirty days before filing the lien.

The lien is then filed in the circuit court for the county in which the land is located. In addition to meeting these two deadlines, the general contractor must include certain language in both the “notice of intent to file lien” and the lien itself. The “notice of intent to file lien” must briefly describe:

The nature of the claim The amount of the claim and The land and improvement to which it relates. The lien must contain the following information: A statement of the contract or demand upon which the lien is founded The name of the person against whom the demand is claimed The name of the claimant and any assignee The last date of performing, furnishing, or procuring any labor, services, materials, plans, or specifications A legal description of the property against which the lien is claimed A statement of the amount claimed and all other material facts in relation thereto

The lien must be signed by the general contractor or their attorney, and must also attach a copy of the aforementioned notices (that is, the notice of lien rights in the written contract and the “notice of intent to file lien”). It is critical that the general contractor include all of this information or they will be at risk of having their lien rights impaired.

1. Finally, once the construction lien is filed against the property, the next step is for the general contractor to enforce it.
2. To do so, the general contractor files a lawsuit to foreclose on the property.
3. There is also a deadline for filing the lawsuit: the general contractor has two years from the date of filing the lien to commence a lawsuit and foreclose on the property.

Similar to the other deadlines already discussed, a failure to meet the deadline will result in the general contractor losing their lien rights. The requirements that a general contractor must follow to properly perfect a construction lien are unforgiving and can be confusing.

I’ve provided you with a simplified overview of the procedure. It is critical that the general contractor understand the applicable notices that they must give to the owner, the contents of such notices and, perhaps most importantly, the deadlines that must be met. Failure to follow all of the requirements could result in the general contractor losing their lien rights and, potentially, any means to receive payment for the work that they performed.

Brian practices in the areas of civil and commercial litigation with a focus on construction law and construction-defect litigation. Learn more about our Construction Defects Litigation practice here.

What is the Michigan construction lien Act?

AN ACT to establish, protect, and enforce by lien the rights of persons performing labor or providing material or equipment for the improvement of real property; to provide for defenses to construction liens; to provide remedies and prescribe penalties; and to repeal acts and parts of acts.

On what grounds may the contractor exercise his lien?

Enforcing Your Builder’s Lien in Cases Where Spoliation Takes Place By Daniellé Giannico (Candidate Attorney) What it is A lien is the right of retention that a Contractor has over a building or part of a building on which it worked, this can mean the Contractor constructed the building from scratch or it enhanced or repaired the building by constructing a portion thereof or renovated same.

Contractors are in the unique position that once they have performed their part of the agreement, they cannot physically withhold the “goods” until the Employer has paid them. This is where the Contractor’s Lien becomes relevant. The lien enables the Contractor to legally remain in or take possession of a site until the Employer pays him.

In order to enforce a Builder’s Lien, the Contractor would have to show that the Employer was enriched by the work the Contractor has done on the project and that the debt that exists is in fact due and payable. A further requirement is that the Contractor must be in possession of the site when he intends to enforce his right and he must remain in possession until such a time that the right falls away.

This means more than just having the keys; the Contractor must be in physical control of the site and he must have the intention to hold and exercise his possession. Waiver of Lien Most of the standard form building contracts make provision for the Employer to provide a payment guarantee to the Contractor in return for which the Contractor waives his lien over any work done in terms of that contract.

In Standard bank of SA v D Florentino Construction CC & Others the Court held that the provision of a payment guarantee is not necessarily a legal requirement to ensure a valid waiver of lien. It is possible for a Contractor to waive his lien without the existent of a payment guarantee to replace it.

Furthermore, where a Contractor voluntarily relinquishes his possession of the property, he will be deemed to have waived his right of retention over such property. In Collen v Rietfontein Engineering Works the Court held that the onus of proving that the Contractor did in fact waive his lien lies with the party alleging that such a waiver took place.

The party alleging the waiver must show that the Contractor acting with full knowledge of his right acted in such a way so as to abandon it. This can take place either expressly or through conduct of the Contractor inconsistent with an intention to enforce his lien.

Spoliation Spoliation is the legal construct describing a scenario where a possessor of a thing is unlawfully deprived of his or her peaceful and undisturbed possession. In Van Rhyn NO and others v Fleurbaix Farm (Pty) Ltd the court described the Mandament van Spolie as a robust remedy aimed at restoring the party claiming spoliation to the position they were in prior to being unlawfully dispossessed of property of which they were in peaceful and undisturbed possession of.

It was furthermore said that all a party claiming spoliation must show is peaceful and undisturbed possession of the thing and the unlawful spoliation thereof; the court does not concern itself with any dispute regarding the party’s entitlement to the possession of the thing.

In order for a Contractor to assert his right of retention, he needs to have physical possession of the property; symbolic possession is not enough. In Wightman t/a JW construction v Headfour (Pty) Ltd and Another,the Employer had requested a duplicate set of keys for the property in order to inspect same, the understanding being that the Contractor would retain possession of the site.

The Contractor had only delivered the duplicate set of keys on the basis of this understanding and for the limited purpose which was discussed. The Court held that construction had progressed far enough that retaining the original keys was enough to retain physical possession of the site.

On the Following Monday, the Contractor was barred entry to the estate in which the property was located, and the Employer had given access to new contractors. The court held that it was at this point that physical possession was lost by the Contractor. Following this loss of physical possession, the Attorneys for both parties concluded an agreement wherein it was agreed that the Contractor would retain his lien over the property regardless of the fact that he had agreed to allow new contractors to complete the works.

It was clear from the actions of the Contractor that he had at no point intended to waive any of his rights. The contractor was then wrongly advised that by reason of the abovementioned agreement he had continued to retain possession of the property. The court confirmed that he had lost physical possession of the property prior to the conclusion of the agreement, and that it was not possible to revest such physical control by agreement.

However, by being dishonest in his reasons for requesting the duplicate keys, the Employer had unlawfully spoliated the Contractor and as a result the court ruled that even though the Contractor had been dispossessed for almost three and a half years, unless the Employer put up adequate security, possession was to be restored to the Contractor In Top Assist 24 (Pty) Ltd t/a Form Work Construction (Registration No: 2006/037960/07) v Cremer and another the court said, in reference to the requirement of deprivation of possession, that spoliation takes place where the applicant is deprived of control over the property by the actions of the respondent.

The applicant does not need to show that the respondent used force or stealth in this deprivation. In Stocks Housing (Cape) (Pty) Ltd v Chief Director, Department of Education and Cultural Services and others it was held that the element of unlawfulness that must be shown relates to the act of dispossession and not the alleged right of the spoliator to claim possession.

Of the many unlawful ways that dispossession can take place, it is important to note that dispossession will always be unlawful where it takes place without the consent of the possessor. Security The owner of the property, being the person against whom the lien is exercised, can defeat the lien by providing the Contractor with adequate security for the outstanding debt which is owing to the Contractor.

However, merely offering the Contractor security for the outstanding debt does not confer a right of possession on the owner. The owner must actually pay the security to the Court, furnish the possessor with a bank guarantee, or pay the amount for security into an Attorneys trust account, where after the attorney provides the possessor with an undertaking that the money will be retained in the trust account until such a time as it becomes due and payable.

4 All SA 236 (WCC) (28 July 2015).1996 (4) SA 231 (C).1948 (1) SA 413 (A) at 436.4 All SA 236 (WCC) (8 August 2013).2008 (5) SA 534 (C).

: Enforcing Your Builder’s Lien in Cases Where Spoliation Takes Place

Can someone put a lien on my house in Michigan?

How Judgment Liens Work – A judgment creditor can file a lien with the court 22 days after the judgment is entered against the debtor, provided that the debtor has not appealed or moved to set the judgment aside. The lien is then sent to the register of deeds for recording in the county where the debtor lives.

1. The judgment lien takes priority over subsequently recorded liens, except tax liens and purchase-money mortgages.
2. Of course, a judgment lien is only effective if the debtor actually owns real estate in the county where the lien is on file.
3. Many creditors require debtors to divulge whether they own or rent their homes when filling out credit applications, so creditors can refer to this information during their collection efforts.

Creditors may also glean this information by pulling a debtor’s credit report to see if there are any outstanding mortgages listed. A unique and useful feature of judgment liens is that they will attach to real estate that the debtor acquires after the recording of the lien.

How do liens work in Michigan?

If contractors and suppliers don’t get paid on a construction project in Michigan, they can file a mechanics lien to secure payment. A mechanics lien is a legal tool that provides the unpaid party with a security interest in the property.

What is the statute of limitations for collecting a debt in Michigan?

The Fact About Michigan Debt Collection Laws and the Statute of Limitation –

According to Michigan law, your creditor has up to 6 years (from the date of your last payment) to collect on a debt, including obtaining a judgment on the debt.

By getting a judgment, your creditor can pursue collections (likely a garnishment) almost indefinitely as long as they renew the judgment every 10 years. The statue of limitations no longer applies if your creditor gets a judgment or default judgment and keeps it active by renewing it.

Just because a debt has been dormant, it does not mean that your creditor won’t resume collection efforts years down the road or sell the debt to a collection agency. Selling a debt to a collection agency typically results in renewed, aggressive collection efforts to collect on the debt.

This third party collection agency can also pursue a judgment to extend their collection timeframe and allow them to apply for a,

A Charge-off status (link to: ) linked to a debt on your credit report does not mean that you are no longer legally obligated to pay the debt. This is merely an accounting practice for your creditor(s). This creditor could still pursue a judgment or sell the debt to a collection agency (who could also pursue a judgment).

If you received a notice of complaint (a lawsuit filed against you) on a debt that is past what you believe to be the Statute of Limitations, you must still respond to the suit. The Statute of Limitations is an “affirmative defense”. If you ignore the notice of complaint, your creditor can obtain a deficiency judgment to renew collection efforts even if it has been past the six years Statute of Limitations. This makes the debt legally binding again and this judgment can also be continually renewed and/or sold to a debt collection agency until the debt has been satisfied.

Lingering, unaddressed debt damages your and will most likely compromise your efforts to obtain new credit sources or reasonable interest rates.

35% of your credit score is based on your payment history. According to FICO, delinquent accounts and derogatory credit reportings will have the largest impact toward a poor credit score.30% of your credit score is based on your total debt load. Even though a particular debt may seem dormant, it still counts toward your total and can continue to drag down your credit score.

The bottom line is that it is best to deal with your debt proactively, find the best debt resolution option and begin rebuilding your credit score. Time is not your ally when it comes to debt collections and maintaining a positive credit score. Call us today at 866-261-8282 for a free consultation on your debt resolution options. We offer with appointments available daily.

How long does a contractor have to file a lien in Maryland?

Mechanics’ Liens – A mechanics’ lien is a way for contractors and subcontractors who supply labor or materials for construction to get paid for their work. Using a mechanics’ lien, a contractor or subcontractor who has performed work on a property can sell the property to recover any amount owed but not paid by a customer.

• A building includes any unit of a nonresidential structure that is leased or sold separately as a unit.
• Several types of work result in the automatic statutory creation of a mechanics’ lien, including landscaping, digging a well, constructing a pool or fence, and leasing equipment for use on the property.
• A contractor or subcontractor can establish a lien for the value of unfinished or finished projects, regardless of the amount of the debt. If unfinished, the value will attach to the work done or material that has been furnished.
• To establish a lien on an older building, the work must increase the building’s value by at least 15%.
• A tenant may also establish a lien on a building in which the tenant lives, but only if the tenant performs work that increases the building’s value by at least 25%.

Normally, a building owner is not required to pay a subcontractor directly because there is no contract between the owner and the subcontractor. A mechanics’ lien allows a subcontractor to recover amounts owed but not paid by the owner to the subcontractor.

For a lien to arise in favor of a subcontractor, there must be a contract between a contractor and the owner on which the subcontractor works and between the contractor and the subcontractor. The contract can be any agreement for goods or services, and it need not be written down. Read the Law: Md. Code, Real Property §§ 9-101, 9-102, and 9-103 When Mechanics’ Liens Do Not Arise.

There are various situations under which a mechanic’s lien is not available.

• Mechanics’ liens do not arise for work on public buildings.
• If a new owner purchases the land or building before a lien on the property is established, then no lien will arise even if the worker provides services that increase the property’s value.
• Separate rules apply to certain subcontractors working on a single-family home.
• A subcontractor cannot get a lien on a property if the owner has already paid the contractor.

Read the Law: Md. Code, Real Property § 9-102, § 9-104 Time Limits. To establish a lien, a contractor or subcontractor must file a petition in the circuit court for the county where the property is located within 180 days after completing work on the property or providing materials.

1. It can be difficult to determine the work completion date.
2. Read the Law: Md.
3. Code, Real Property § 9-105(a) Notice For Subcontractors.
4. Subcontractors must give the owner written notice of their intent to claim the lien.
5. Subcontractors must give this notice within 120 days after they complete work or provide materials.

Upon receipt of a notice from a subcontractor, the owner may withhold from the contractor the amount owed to the subcontractor to pay the subcontractor directly. However, this amount may not exceed the amount that the owner owes under the contract at the time the notice is given.

How long does a contractor have to file a lien in NC?

North Carolina Mechanics Lien FAQs Preliminary notice deadlines Notice to Lien Agent required within 15 days from first furnishing labor and/or materials. Lien filed and served within 120 days from last furnishing labor or materials. An action to enforce a North Carolina mechanics lien must be initiated within 180 days after the claimant’s last furnishing of labor or materials.

Note that this deadline runs from last furnishing, so it is possible that the deadline could be as short as 60 days from the filing of the lien itself. This deadline may not be extended, and missing the deadline invalidates the lien. Preliminary notice deadlines Notice to Lien Agent required within 15 days from first furnishing labor and/or materials.

Notice of Subcontract if Notice of Contract Filed by Prime Contractor. Lien filed and served within 120 days from last furnishing labor or materials. An action to enforce a North Carolina mechanics lien must be initiated within 180 days after the claimant’s last furnishing of labor or materials.

Note that this deadline runs from last furnishing, so it is possible that the deadline could be as short as 60 days from the filing of the lien itself. This deadline may not be extended, and missing the deadline invalidates the lien. Preliminary notice deadlines Notice to Lien Agent required within 15 days from first furnishing labor and/or materials.

Notice of Subcontract if Notice of Contract Filed by Prime Contractor. Lien filed and served within 120 days from last furnishing labor or materials. An action to enforce a North Carolina mechanics lien must be initiated within 180 days after the claimant’s last furnishing of labor or materials.

1. Note that this deadline runs from last furnishing, so it is possible that the deadline could be as short as 60 days from the filing of the lien itself.
2. This deadline may not be extended, and missing the deadline invalidates the lien.
3. Contractors, suppliers, property owners, construction lenders, and other vendors will encounter all kinds of lien-related paperwork and questions when working on North Carolina construction jobs.

Here are some of the common issues you may encounter, and answers written by In North Carolina, “any person who performs or furnishes labor or professional design or surveying services or furnishes materials or furnishes rental equipment pursuant to a contract,

• Parties that may file a lien against the real property are: 1) party contracting directly with the owner; 2) first tier sub ; 3) first, second, or third tier sub provided the requirements for a claim against funds are complied with, and b) the owner pays the general or higher-tiered sub anyway and does not hold out enough to cover liens; 4) second or third tier subs (and suppliers) through subrogation of the GC’s lien even if the first-tier sub has been paid, when the owner still owes money to the GC and the GC has lien rights – this can be limited if the general files a notice of contract and second or third tier sub does not serve a notice of subcontract; or unless, if both notices are given, the general serves written notice of payment with 5 days of receiving payment.
• Parties that may file a claim on funds: a subcontractor may claim a lien against funds owed to their hiring party (the party on the tier above) and may also be subrogated to that party’s claim.
• Parties more remote than a second tier sub may not be subrogated to higher subs’ interest.
• Parties may not file a claim against funds when no funds are owed to the higher tier party at the time the lower tier party files the claim of lien.

Another nuance about who can file a mechanics lien was recently analyzed by the North Carolina Court of Appeals in a controversial decision that invalidated a mechanics lien because the parties contracted with a party to do the work who at the time work began was not the actual owner of the property, but only later became an owner.

1. To qualify for a lien pursuant to the law of this case, therefore, you must contract with someone who has an immediate interest in the property being improved.
2. See discussion of this case, John Conner Construction, Inc. et al v.
3. Grandfather Holding Company, Inc., et al in our blog article: In North Carolina, a mechanics lien must be filed after the debt becomes due, but within 120 days from the date of last furnishing labor or materials to the project.

If the claim is upon funds, there isn’t a hard “deadline” for making a claim. However, it’s a good idea to send a claim of lien upon funds earlier rather than later. A claim of lien upon funds requires the obligor to withhold funds for the claimant’s benefit.

But, if there are no funds left to be withheld on the project, the claimant might not be able to recover. Yes. A claim of lien on real property is required to be served on the owner of the property as well as filed in the Office of the Clerk of Superior Court in the county in which the property is located.

A subcontractor must also serve the general contractor with a copy of the lien. The mechanics lien is not perfected until the lien is both filed and served on the owner (and, if required, the general contractor). This means that the lien must be both filed and served prior to the expiration of 120 days from last furnishing labor and/or materials to the project.

A claim of lien on funds is not required to be filed (unless attached to a lien on real property), but is required to be sent by certified mail to the parties “up-the-chain” from the lien claimant. If the obligor is a corporation, the claim must be addressed to the attention of an officer, director, or managing agent.

No. In North Carolina, the amount of the mechanics lien is determined by the unpaid amount of labor, material, and/or equipment furnished to the project. Interest and indirect or consequential damages are not allowable in the lien claim. Attorney’s fees may be granted to the prevailing party at the discretion of the judge if the losing party unreasonably refused to resolve the matter.

In North Carolina, a mechanics lien generally has priority over other encumbrances to the property attaching after the earliest of either 1) the lien filing; or 2) the Notice of Commencement. There is some controversy as to whether a contractor’s mechanic’s lien on real property or a bank holding the construction mortgage takes priority in a foreclosure action.

We discuss an appeals court’s clear explanation of this area of law, which previously had a bit of uncertainty, in the following article:, No. In North Carolina, a mechanics lien must “reasonably identify” the property to be charged with the lien. The description does not need to be as detailed as a full legal description.

• No. North Carolina does not require that a mechanics lien be notarized in order to be valid.
• North Carolina imposes no specific licensing requirement in order to file a valid mechanics lien.
• However, it is never a good idea to perform work for which a license is required without having the proper license.

Yes, a mechanics lien may be filed against a project involving a condominium, provided the lien claimant would otherwise have valid mechanics lien rights. There is no specific provision in North Carolina stating which party is responsible for discharging a lien when the obligation underlying the lien is paid.

The lien claimant of record, or the claimant’s agent or attorney, may acknowledge the satisfaction of the claim of lien on real property indebtedness, or the property owner may exhibit an instrument of satisfaction signed and acknowledged by the lien claimant of record which states that the claim of lien on real property indebtedness has been paid or satisfied.

North Carolina does not have statutory lien waiver forms; therefore, you can use any lien waiver form. Since lien waivers are unregulated, be careful when reviewing and signing lien waivers. Also, North Carolina state law prohibits contractors and suppliers from waiving their right to file a mechanics lien in contract.

To learn more about lien waivers, see our, It depends on what deadline you missed. I you missed the 120-day deadline for filing a mechanic’s lien under Chapter 44A (120 days from the last date on which you furnished labor or materials), you are barred from filing the lien and your remedy at that point would be to file an action for breach of contract.

While it is possible they could file a lien, that lien would be invalid as the subcontractor only has the same rights as the contractor to lien your property. If the general contractor has been paid in full, the subcontractor does not have a legal right to lien your property.

If the lien is filed, it would be invalid and the subcontractor may liable for your attorney’s fees and costs paid to remove the lien. That is a, First I want to differentiate between perfecting a lien and enforcing a lien. Perfecting a mechanics lien merely requires a filing in the property records in the county in which the work was performed.

Enforcing a lien requires an actual lawsuit. Basically, a lien may be perfected regardless of the validity of the claim. Yet, the enforcement of a mechanics lien requires legal action, an owner will have the opportunity to challenge a legal claim before it is enforced without further scrutiny.

1. Next, if the mechanics lien filed was not enforced then the lien will expire after a certain amount of time if not enforced.
2. In North Carolina, a lien will expire if it is not enforced.
3. In North Carolina, an action to enforce a mechanics lien against real property must be initiated within 180 days after the date of last furnishing labor or materials to the project.

Yet, that doesn’t mean that the lien will simply disappear. Rather, a lien claim will often linger in the property records if it is left unattended. The owner of the property can take legal action to have the lien removed, and the owner may also put pressure on the party who filed the lien to remove the now-invalid lien.

You can learn more about, North Carolina’s mechanics lien laws provide substantial protection for contractors and suppliers. However, there are many requirements that must be followed in order for a construction participant to qualify for, maintain, perfect, and enforce lien rights. This page provides frequently asked questions about North Carolina’s mechanics lien laws and rules, the lien statutes, and a breakdown of the lien and notice details for contractors and suppliers in North Carolina.

You may want to consult our In our, we will walk you through each step required to qualify for and file a North Carolina mechanics lien. This guide explains the notices you need to send, the information required on the North Carolina mechanics lien form, and essential tips about delivering it to the county office for recording. Be careful! Accuracy is important. This is the tricky part. North Carolina lien law is very specific requirements for the information that needs to be included and the format of the document itself. All of the information must be 100% accurate, including the legal names of each party, the property description, and the claim amount. Under North Carolina lien law, you’re required to serve a copy of the lien on the property owner. Subcontractors must serve the lien on the general contractor. A mechanics lien in North Carolina is only valid for 180 days after last furnishing of labor or materials, meaning it will expire if not enforced. Usually, the payment dispute is resolved in that time. However, if the lien claim alone wasn’t enough to spur payment, you can within the 180 day window.

• The provisions of the North Carolina statutes that permit the filing of mechanics liens and materialman’s liens can be found in et. seq.
• Relevant sections of North Carolina’s mechanics lien statute have been provided below.
• Updated as of 2020.
• Unless the context otherwise requires, the following definitions apply in this Article: (1) Contractor.

– A person who contracts with an owner to improve real property. (2) First tier subcontractor. – A person who contracts with a contractor to improve real property. (3) Improve. – To build, effect, alter, repair, or demolish any improvement upon, connected with, or on or beneath the surface of any real property, or to excavate, clear, grade, fill or landscape any real property, or to construct driveways and private roadways, or to furnish materials, including trees and shrubbery, for any of such purposes, or to perform any labor upon such improvements, and shall also mean and include any design or other professional or skilled services furnished by architects, engineers, land surveyors and landscape architects registered under Chapter 83A, 89A or 89C of the General Statutes, and rental of equipment directly utilized on the real property in making the improvement.

4) Improvement. – All or any part of any building, structure, erection, alteration, demolition, excavation, clearing, grading, filling, or landscaping, including trees and shrubbery, driveways, and private roadways, on real property. (4a) Inspection department. – Any city or county building inspection department authorized by Chapter 160A or Chapter 153A of the General Statutes.

(4b) Lien agent. – A title insurance company or title insurance agency designated by an owner pursuant to G.S.44A-11.1. (5) Obligor. – An owner, contractor, or subcontractor in any tier who owes money to another as a result of the other’s partial or total performance of a contract to improve real property.

• 6) Owner.
• A person who has an interest in the real property improved and for whom an improvement is made and who ordered the improvement to be made.
• Owner” includes successors in interest of the owner and agents of the owner acting within their authority.
• 6a) Potential lien claimant.
• Any person entitled to claim a lien for improvements to real property under this Article who is subject to G.S.44A-11.1.

(7) Real property. – The real estate that is improved, including lands, leaseholds, tenements and hereditaments, and improvements placed thereon. (8) Second tier subcontractor. – A person who contracts with a first tier subcontractor to improve real property.

9) Third tier subcontractor. – A person who contracts with a second tier subcontractor to improve real property. Any person who performs or furnishes labor or professional design or surveying services or furnishes materials or furnishes rental equipment pursuant to a contract, either express or implied, with the owner of real property for the making of an improvement thereon shall, upon complying with the provisions of this Article, have a right to file a claim of lien on real property on the real property to secure payment of all debts owing for labor done or professional design or surveying services or material furnished or equipment rented pursuant to the contract.

A claim of lien on real property authorized under this Article shall extend to the improvement and to the lot or tract on which the improvement is situated, to the extent of the interest of the owner. When the lot or tract on which a building is erected is not surrounded at the time of making the contract with the owner by an enclosure separating it from adjoining land of the same owner, the lot or tract to which any claim of lien on real property extends shall be the area that is reasonably necessary for the convenient use and occupation of the building, but in no case shall the area include a building, structure, or improvement not normally used or occupied or intended to be used or occupied with the building with respect to which the claim of lien on real property is claimed.

• A) Perfection.
• A claim of lien on real property granted by this Article shall be perfected as of the time provided in G.S.44A-10 upon the occurrence of all of the following: (1) Service of a copy of the claim of lien on real property upon the record owner of the real property claimed to be subject to the claim of lien and, if the claim of lien on real property is being asserted pursuant to G.S.44A-23, also upon the contractor through which subrogation is being asserted.

(2) Filing of the claim of lien on real property under G.S.44A-12.

1. (b) Method of Service. – Service of the claim of lien on real property pursuant to subsection (a) of this section shall not require proof of actual receipt by the listed recipient and shall be complete upon the occurrence of any of the following:
2. (1) Personal delivery of a copy of the claim of lien on real property upon the recipient.
3. (2) Deposit of a copy of the claim of lien on real property in a postpaid, properly addressed wrapper in either of the following:

a. A post office or official depository under the exclusive care and custody of the United States Postal Service.b. An authorized depository under the exclusive care and custody of a designated delivery service authorized pursuant to 26 U.S.C. § 7502(f)(2).

• (c) Service Address. – For purposes of this section, a wrapper addressed to a party required to be served under subdivision (1) of subsection (a) of this section shall be conclusively deemed properly addressed if it uses any of the following addresses:
• (1) The address for the party to be served listed on the permit issued for the improvement.
• (2) The address for the party to be served listed with the tax rolls for any county in North Carolina.
• (3) The address of the registered agent for the party to be served listed with the North Carolina Secretary of State’s office.

(a) With regard to any improvements to real property to which this Article is applicable for which the costs of the undertaking are thirty thousand dollars ($30,000) or more, either at the time that the original building permit is issued or, in cases in which no building permit is required, at the time the contract for the improvements is entered into with the owner, the owner shall designate a lien agent no later than the time the owner first contracts with any person to improve the real property.

Provided, however, that the owner is not required to designate a lien agent for improvements to an existing single-family residential dwelling unit as defined in G.S.87-15.5(7) that is occupied by the owner as a residence, or for the addition of an accessory building or accessory structure as defined in the North Carolina Uniform Residential Building Code, the use of which is incidental to that residence.

The owner shall deliver written notice of designation to its designated lien agent by any method authorized in G.S.44A-11.2(f), and shall include in its notice the street address, tax map lot and block number, reference to recorded instrument, or any other description that reasonably identifies the real property for the improvements to which the lien agent has been designated, and the owner’s contact information.

Designation of a lien agent pursuant to this section does not make the lien agent an agent of the owner for purposes of receiving a Claim of Lien on Real Property, a Notice of Claim of Lien upon Funds, a Notice of Subcontract, or for any purpose other than the receipt of notices to the lien agent required under G.S.44A-11.2,

(a1) Where the improvements to a real property leasehold are limited to the purchase, transportation, and setup of a manufactured home, as defined in G.S.143-143.9(6), for which there is a current certificate of title, the purchase price of the manufactured home shall be excluded in determining whether the costs of the undertaking are thirty thousand dollars ($30,000) or more.

(b) The lien agent shall be chosen from among the list of registered lien agents maintained by the Department of Insurance pursuant to G.S.58-26-45, (c) Upon receipt of written notification of designation by an owner pursuant to subsection (a) of this section, the lien agent shall have the duties as set forth in G.S.58-26-45(b),

(d) In the event that the lien agent resigns, is no longer licensed to serve as a lien agent, revokes its consent to serve as lien agent or is removed by the owner, or otherwise becomes unable or unwilling to serve before the completion of all improvements to the real property, the owner shall within three business days of notice of such event do all of the following: (1) Designate a successor lien agent and provide written notice of designation to the successor lien agent pursuant to subsection (a) of this section.

(2) Provide the contact information for the successor lien agent to the inspection department that issued any required building permit and to any persons who requested information from the owner relating to the predecessor lien agent. (3) Display the contact information for the successor lien agent on the building permit or attachment thereto posted on the improved property or, if no building permit was required, on a sign complying with G.S.44A-11.2(e),

(e) Until such time as the owner has fully complied with subsection (d) of this section, notice transmitted to the predecessor lien agent shall be deemed effective notice, notwithstanding the fact that the lien agent may have resigned or otherwise become unable or unwilling to serve.

(f) Any attorney who, in connection with a transaction involving improved real property subject to this section for which the attorney is serving as the closing attorney, contacts the lien agent in writing and requests copies of the notices to lien agent, renewals of notices to lien agent, and cancellations of notices to lien agent received by the lien agent relating to the real property not more than five business days prior to the date of recordation of a deed or deed of trust on the real property, shall be deemed to have fulfilled the attorney’s professional obligation as closing attorney to check such notices to lien agent, renewals of notices to lien agent, and cancellations of notices to lien agent and shall have no further duty to request that the lien agent provide information pertaining to notices or cancellations received subsequently by the lien agent.

(a) As used in this section, the term “contact information” means the name, physical and mailing address, telephone number, facsimile number, and electronic mail address of the lien agent designated by the owner pursuant to G.S.44A-11.1. (b) Within seven days of receiving a written request by a potential lien claimant by any delivery method specified in subsection (f) of this section, the owner shall provide a notice to the potential lien claimant containing the contact information for the lien agent, by the same delivery method used by the potential lien claimant in making the request.

B1) A potential lien claimant making a request pursuant to subsection (b) of this section who did not receive the lien agent contact information pursuant to subsection (c) of this section, and who has not furnished labor, materials, rental equipment, or professional design or surveying services at the site of the improvements, or who last furnished labor, materials, rental equipment, or professional design or surveying services at the site of the improvements prior to the posting of the contact information for the lien agent pursuant to subsection (d) or (e) of this section, has no obligation to give notice to the lien agent under this section until the potential lien claimant has received the contact information from the owner.

(c) A contractor or subcontractor for improvements to real property subject to G.S.44A-11.1 shall, within three business days of contracting with a lower-tier subcontractor who is not required to furnish labor, materials, rental equipment, or professional design or surveying services at the site of the improvements, provide the lower-tier subcontractor with a written notice containing the contact information for the lien agent designated by the owner.

This notice shall be given pursuant to subsection (f) of this section or may be given by including the lien agent contact information in a written subcontract entered into by, or a written purchase order issued to, the lower-tier subcontractor entitled to the notice required by this subsection. Any contractor or subcontractor who has previously received notice of the lien agent contact information, whether from the building permit, the inspections office, a notice from the owner, contractor, or subcontractor, or by any other means, and who fails to provide the lien agent contact information to the lower-tier subcontractor in the time required under this subsection, is liable to the lower-tier subcontractor for any actual damages incurred by the lower-tier subcontractor as a result of the failure to give notice.

(d) For any improvement to real property subject to G.S.44A-11.1, any building permit issued pursuant to G.S.160A-417(d) or G.S.153A-357(e) shall be conspicuously and continuously posted on the property for which the permit is issued until the completion of all construction.

1. (f) In complying with any requirement for written notice pursuant to this section, the notice shall be addressed to the person required to be provided with the notice and shall be delivered by any of the following methods:
2. (1) Certified mail, return receipt requested.
3. (2) Signature confirmation as provided by the United States Postal Service.
4. (3) Physical delivery and obtaining a delivery receipt from the lien agent.
5. (4) Facsimile with a facsimile confirmation.

(5) Depositing with a designated delivery service authorized pursuant to 26 U.S.C. § 7502(f)(2). (6) Electronic mail, with delivery receipt. (7) Utilizing an Internet Web site approved for such use by the designated lien agent to transmit to the designated lien agent, with delivery receipt, all information required to notify the lien agent of its designation pursuant to G.S.44A-11.1 or to provide a notice to the designated lien agent pursuant to this section.

• (g) For purposes of this subsection, “custom contractor” means a contractor duly licensed as a general contractor pursuant to Article 1 of Chapter 87 of the General Statutes who has contracted with an owner who is not an affiliate, relative, or insider of the contractor to build a single-family residence on the owner’s property to be occupied by the owner as a residence. A custom contractor shall be deemed to have met the requirement of notice under subsections (l) and (m) of this section on the date of the lien agent’s receipt of notice of its designation as lien agent delivered to it by the custom contractor in accordance with this section if, at the time of the lien agent’s receipt of the notice, all of the following conditions are met:
• (1) The owner has not previously designated a lien agent for the improvements to which the notice of designation of lien agent relates.
• (2) The custom contractor is authorized to designate the lien agent on behalf of the owner under the written contract between the owner and custom contractor.

(3) In addition to the information required to be included pursuant to G.S.44A-11.1(a), the notice of designation of lien agent contains the following information: a. The custom contractor’s name, mailing address, telephone number, fax number (if available), and electronic mailing address (if available).b.

• The name of the owner with whom the custom contractor has contracted to improve the real property identified in the notice.
• After receiving a notice of its designation from a custom contractor pursuant to this subsection, the designated lien agent shall include the custom contractor’s name and contact information in responding to any request for information pursuant to G.S.58-26-45(b)(7).

(h) When a lien agent is not identified in a contract for improvements to real property subject to G.S.44A-11.1 entered into between an owner and a design professional, the design professional shall be deemed to have met the requirement of notice under subsections (l) and (m) of this section on the date of the lien agent’s receipt of the owner’s designation of the lien agent.

The owner shall provide written notice to the lien agent containing the information pertaining to the design professional required in a notice to lien agent pursuant to subdivisions (1) through (3) of subsection (i) of this section, by any method of delivery authorized in subsection (f) of this section.

The lien agent shall include the design professional’s name and address in its response to any persons requesting information relating to persons who have given notice to the lien agent pursuant to this section. For purposes of this subsection, the term “design professional” means any architects, engineers, land surveyors, and landscape architects registered under Chapter 83A, 89A, or 89C of the General Statutes.

1. (i) The form of the notice to be given under this section shall be legible, shall include the following information unless designated as “if available,” and shall be substantially as follows:
2. NOTICE TO LIEN AGENT
3. (1) Potential lien claimant’s name, mailing address, telephone number, fax number (if available), and electronic mailing address (if available):
4. (2) Name of the party with whom the potential lien claimant has contracted to improve the real property described below:
5. (3) A description of the real property sufficient to identify the real property, such as the name of the project, if applicable, the physical address as shown on the building permit or notice received from the owner:
6. (4) I give notice of my right subsequently to pursue a claim of lien for improvements to the real property described in this notice.
7. Dated: _
8. _
9. Potential Lien Claimant

(j) The service of the Notice to Lien Agent does not satisfy the service or filing requirements applicable to a Notice of Subcontract under Part 2 of Article 2 of this Chapter, a Notice of Claim of Lien upon Funds under Part 2 of Article 2 of this Chapter, or a Claim of Lien on Real Property under Part 1 or Part 2 of Article 2 of this Chapter.

A Notice to Lien Agent shall not be combined with or make reference to a Notice of Subcontract or Notice of Claim of Lien upon Funds as described in this subsection. (k) The notice to lien agent shall not be filed with the clerk of superior court. An inaccuracy in the description of the improved real property provided in the notice does not bar a person from claiming a lien under this Article or otherwise perfecting or enforcing a claim of lien as provided in this Article, if the improved real property can otherwise reasonably be identified from the information contained in the notice.

(l) Except as otherwise provided in this section, for any improvement to real property subject to G.S.44A-11.1, a potential lien claimant may perfect a claim of lien on real property only if at least one of the following conditions is met: (1) The lien agent identified in accordance with this section has received a Notice to Lien Agent from the potential lien claimant no later than 15 days after the first furnishing of labor or materials by the potential lien claimant.

(2) Any of the following conditions is met: a. The lien agent identified in accordance with this section has received a Notice to Lien Agent from the potential lien claimant prior to the date of recordation of a conveyance of the property interest in the real property to a bona fide purchaser for value protected under G.S.47-18 who is not an affiliate, relative, or insider of the owner.b.

The potential lien claimant has perfected its claim of lien on real property pursuant to G.S.44A-11 prior to the recordation of a conveyance of the property interest in the real property to a bona fide purchaser for value protected under G.S.47-18 who is not an affiliate, relative, or insider of the owner.

As used in this subdivision, the terms “affiliate,” “relative,” and “insider” have the meanings as set forth in G.S.39-23.1. (m) Except as otherwise provided in this section, for any improvement to real property subject to G.S.44A-11.1, the claim of lien on real property of a potential lien claimant that is not perfected pursuant to G.S.44A-11 prior to the recordation of any mortgage or deed of trust for the benefit of one who is not an affiliate, relative, or insider of the owner is subordinate to the previously recorded mortgage or deed of trust unless at least one of the following conditions is met: (1) The lien agent identified in accordance with this section has received a Notice to Lien Agent from the potential lien claimant no later than 15 days after the first furnishing of labor or materials by the potential lien claimant.

(2) The lien agent identified in accordance with this section has received a Notice to Lien Agent from the potential lien claimant prior to the date of recordation of the mortgage or deed of trust. (n) For any improvement to real property subject to G.S.44A-11.1, a potential lien claimant is not required to comply with this section if the lien agent contact information is neither contained in the building permit or attachment thereto or sign posted on the improved property pursuant to subsection (d) or (e) of this section at the time when the potential lien claimant was furnishing labor, materials, rental equipment, or professional design or surveying services at the site of the improvements, nor timely provided by the owner in response to a written request by the potential lien claimant made pursuant to subsection (b) of this section.

The lien rights of a potential lien claimant who is given erroneous information by the owner regarding the identity of the lien agent are not extinguished under subsection (l) of this section nor subordinated under subsection (m) of this section. (o) Except as provided in subsections (l) and (m) of this section, nothing contained in this section affects a claim of lien upon funds pursuant to G.S.44A-18.

(p) A potential lien claimant may provide the notice to lien agent required under this section regardless of whether the improvements for which the potential lien claimant is responsible are contracted, started, in process, or completed at the time of submitting the notice.

Q) For any improvement to real property subject to G.S.44A-11.1, a potential lien claimant may cancel a Notice to Lien Agent by utilizing the Internet Web site approved for such use by the designated lien agent. For any improvement to real property subject to G.S.44A-11.1 comprising one- or two-family dwellings, a potential lien claimant shall cancel a Notice to Lien Agent by utilizing the Internet Web site approved for such use by the designated lien agent within a reasonable time after the potential lien claimant has confirmed its receipt of final payment for the improvement to which the Notice to Lien Agent relates.

(r) A Notice to Lien Agent not otherwise cancelled or renewed pursuant to this section expires and is discharged five years from its date of delivery to the lien agent. (s) A Notice to Lien Agent may be renewed prior to its cancellation or automatic expiration for one five-year period by utilizing the Internet Web site approved for such use by the designated lien agent.

• (t) If a Notice to Lien Agent is timely renewed prior to cancellation or expiration pursuant to this section, the renewal shall maintain and relate back to the original delivery date of the Notice to Lien Agent.
• (u) Any protections provided to a potential lien claimant under this section as the result of its delivery of a Notice to Lien Agent shall terminate upon the cancellation or automatic expiration of that Notice to Lien Agent pursuant to this section and shall not thereafter be revived or renewed by subsequent delivery of a Notice to Lien Agent by that potential lien claimant.
• (v) Cancellation or expiration of a Notice to Lien Agent pursuant to this section has no effect upon the validity of a previously filed claim of lien or upon the priority of lien rights.

(a) Place of Filing. – All claims of lien on real property must be filed in the office of the clerk of superior court in each county where the real property subject to the claim of lien on real property is located. The clerk of superior court shall note the claim of lien on real property on the judgment docket and index the same under the name of the record owner of the real property at the time the claim of lien on real property is filed.

1. (c) Contents of Claim of Lien on Real Property to Be Filed. – All claims of lien on real property must be filed using a form substantially as follows:
2. CLAIM OF LIEN ON REAL PROPERTY
3. (1) Name and address of the person claiming the claim of lien on real property:

(2) Name and address of the record owner of the real property claimed to be subject to the claim of lien on real property at the time the claim of lien on real property is filed and, if the claim of lien on real property is being asserted pursuant to G.S.44A-23, the name of the contractor through which subrogation is being asserted:

• (3) Description of the real property upon which the claim of lien on real property is claimed: (Street address, tax lot and block number, reference to recorded instrument, or any other description of real property is sufficient, whether or not it is specific, if it reasonably identifies what is described.)
• (4) Name and address of the person with whom the claimant contracted for the furnishing of labor or materials:
• (5) Date upon which labor or materials were first furnished upon said property by the claimant:
• (5a) Date upon which labor or materials were last furnished upon said property by the claimant:
• (6) General description of the labor performed or materials furnished and the amount claimed therefor:

I hereby certify that I have served the parties listed in (2) above in accordance with the requirements of G.S.44A-11.

1. _
2. Lien Claimant
3. Filed this _ day of _, _
4. _
5. Clerk of Superior Court

A general description of the labor performed or materials furnished is sufficient. It is not necessary for lien claimant to file an itemized list of materials or a detailed statement of labor performed. (d) No Amendment of Claim of Lien on Real Property.

• A claim of lien on real property may not be amended.
• A claim of lien on real property may be cancelled by a claimant or the claimant’s authorized agent or attorney and a new claim of lien on real property substituted therefor within the time herein provided for original filing.
• E) Notice of Assignment of Claim of Lien on Real Property.

– When a claim of lien on real property has been filed, it may be assigned of record by the lien claimant in a writing filed with the clerk of superior court who shall note the assignment in the margin of the judgment docket containing the claim of lien on real property.

Thereafter the assignee becomes the lien claimant of record. (f) Waiver of Right to File, Serve, or Claim Liens as Consideration for Contract Against Public Policy. – An agreement to waive the right to file a claim of lien on real property granted under this Part, or an agreement to waive the right to serve a notice of claim of lien upon funds granted under Part 2 of this Article, which agreement is in anticipation of and in consideration for the awarding of any contract, either expressed or implied, for the making of an improvement upon real property under this Article is against public policy and is unenforceable.

This section does not prohibit subordination or release of a lien granted under this Part or Part 2 of this Article. (a) Where and When Action Commenced. – An action to enforce a claim of lien on real property may be commenced in any county where venue is otherwise proper.

No such action may be commenced later than 180 days after the last furnishing of labor or materials at the site of the improvement by the person claiming the claim of lien on real property. If the title to the real property against which the claim of lien on real property is asserted is by law vested in a receiver or is subject to the control of the bankruptcy court, the claim of lien on real property shall be enforced in accordance with the orders of the court having jurisdiction over said real property.

The filing of a proof of claim with a receiver or in bankruptcy and the filing of a notice of lis pendens in each county where the real property subject to the claim of lien on real property is located within the time required by this section satisfies the requirement for the commencement of a civil action.

1. B) Judgment.
2. A judgment enforcing a lien under this Article may be entered for the principal amount shown to be due, not exceeding the principal amount stated in the claim of lien enforced thereby.
3. The judgment shall direct a sale of the real property subject to the lien thereby enforced.
4. C) Notice of Action.

– In order for the sale under G.S.44A-14(a) to pass all title and interest of the owner to the purchaser good against all claims or interests recorded, filed or arising after the first furnishing of labor or materials at the site of the improvement by the person claiming the claim of lien on real property, a notice of lis pendens shall be filed in each county in which the real property subject to the claim of lien on real property is located except the county in which the action is commenced.

1. The notice of lis pendens shall be filed within the time provided in subsection (a) of this section for the commencement of the action by the lien claimant.
2. If neither an action nor a notice of lis pendens is filed in accordance with this section, the judgment entered in the action enforcing the claim of lien on real property shall not direct a sale of the real property subject to the claim of lien on real property enforced thereby nor be entitled to any priority under the provisions of G.S.44A-14(a), but shall be entitled only to those priorities accorded by law to money judgments.

(d) Former Owner Not a Necessary Party to Action. – In an action brought under this section, a former owner of the improved property at the time the lien arose, who holds no ownership interest in the property at the time the action is commenced and against whom the plaintiff seeks no relief, is not a necessary party to the action.

1. E) Subsequent Purchaser and Lender Not Necessary or Proper Parties to Action Filed After Claim of Lien Is Discharged.
2. If a claim of lien on real property filed under this Article is discharged pursuant to G.S.44A-16(a)(5) or G.S.44A-16(a)(6) prior to the filing of an action to enforce the claim of lien under this section, then neither a subsequent purchaser of the real property upon which the lien is claimed nor the subsequent purchaser’s lender shall be a necessary or proper party to the action.

However, nothing herein precludes the lien claimant from asserting any claims against any party that are separate and distinct from enforcement of the lien. (f) Subsequent Purchaser and Lender No Longer Necessary or Proper Parties Upon Discharge of Claim of Lien After Action Is Filed.

– If an action to enforce a lien under this section is commenced before the claim of lien is discharged pursuant to G.S.44A-16(a)(5) or G.S.44A-16(a)(6), a subsequent purchaser of the real property upon which the lien is claimed and the subsequent purchaser’s lender shall cease to be a necessary or proper party to the action, and any claim for lien enforcement asserted against the subsequent purchaser of the real property upon which the lien is claimed or the subsequent purchaser’s lender shall be dismissed upon motion of any party upon a showing that the claim of lien was discharged pursuant to G.S.44A-16.

However, nothing herein precludes the lien claimant from continuing to pursue any claims against any party that are separate and distinct from enforcement of the lien. (g) Bonds Prohibited From Requiring Subsequent Purchaser or Lender to Remain Parties to Action After Discharge of Claim of Lien.

– The fact that a subsequent purchaser of the real property upon which the lien is claimed or the subsequent purchaser’s lender is not a party to an action to enforce a claim of lien on real property subsequent to discharge of that claim of lien by the contractor under G.S.44A-16 shall not invalidate the claim of lien under this Chapter, nor shall it invalidate any bond filed under G.S.44A-16 to discharge the claim of lien.

Further, a bond filed under G.S.44A-16(a)(6) shall not require that a subsequent purchaser of the real property upon which the lien is claimed or the subsequent purchaser’s lender remain a party to an action to enforce a claim of lien after the claim of lien has been discharged pursuant to G.S.44A-16.

(h) Definition of “Subsequent Purchaser.” – For purposes of this section, a “subsequent purchaser” means a party whose record interest is protected under G.S.47-18, including any beneficiary of a deed of trust or mortgagee of that party, the priority of whose interest is protected under the provisions of G.S.47-20, and who was not the owner of the real property at the time of the improvements giving rise to the lien claim as defined in G.S.44A-7(6).

(a) Execution Sale; Effect of Sale. – Except as provided in subsection (b) of this section, sales under this Article and distribution of proceeds thereof shall be made in accordance with the execution sale provisions set out in G.S.1-339.41 through 1-339.76.

The sale of real property to satisfy a claim of lien on real property granted by this Article shall pass all title and interest of the owner to the purchaser, good against all claims or interests recorded, filed or arising after the first furnishing of labor or materials at the site of the improvement by the person claiming a lien.

(b) Sale of Property upon Order Prior to Judgment. – A resident judge of superior court in the district in which the action to enforce the claim of lien on real property is pending, a judge regularly holding the superior courts of the said district, any judge holding a session of superior court, either civil or criminal, in the said district, a special judge of superior court residing in the said district, or the chief judge of the district court in which the action to enforce the claim of lien on real property is pending, may, upon notice to all interested parties and after a hearing thereupon and upon a finding that a sale prior to judgment is necessary to prevent substantial waste, destruction, depreciation or other damage to said real property prior to the final determination of said action, order any real property against which a claim of lien on real property under this Article is asserted, sold in any manner determined by said judge to be commercially reasonable.

• (a) Any claim of lien on real property filed under this Article may be discharged by any of the following methods:
• (1) The lien claimant of record, the claimant’s agent or attorney, in the presence of the clerk of superior court may acknowledge the satisfaction of the claim of lien on real property indebtedness, whereupon the clerk of superior court shall forthwith make upon the record of such claim of lien on real property an entry of such acknowledgment of satisfaction, which shall be signed by the lien claimant of record, the claimant’s agent or attorney, and witnessed by the clerk of superior court.
• (2) The owner may exhibit an instrument of satisfaction signed and acknowledged by the lien claimant of record which instrument states that the claim of lien on real property indebtedness has been paid or satisfied, whereupon the clerk of superior court shall cancel the claim of lien on real property by entry of satisfaction on the record of such claim of lien on real property.
• (3) By failure to enforce the claim of lien on real property within the time prescribed in this Article.
• (4) By filing in the office of the clerk of superior court the original or certified copy of a judgment or decree of a court of competent jurisdiction showing that the action by the claimant to enforce the claim of lien on real property has been dismissed or finally determined adversely to the claimant.
• (5) Whenever a sum equal to the amount of the claim or claims of lien on real property claimed is deposited with the clerk of court, to be applied to the payment finally determined to be due, whereupon the clerk of superior court shall cancel the claim or claims of lien on real property or claims of lien on real property of record.
• (6) Whenever a corporate surety bond, in a sum equal to one and one-fourth times the amount of the claim or claims of lien on real property claimed and conditioned upon the payment of the amount finally determined to be due in satisfaction of said claim or claims of lien on real property, is deposited with the clerk of court, whereupon the clerk of superior court shall cancel the claim or claims of lien on real property of record.
• (b) The clerk may release funds held or a corporate surety bond upon receipt of one of the following:
• (1) Written agreement of the parties.
• (2) A final judgment of a court of competent jurisdiction.
• (3) A consent order.

(c) For improvements performed in conjunction with a development contract under G.S.143-128.1C, a claim of lien on real property or a claim of lien on funds served on a private developer may also be discharged by the private developer and the surety on a payment bond issued under G.S.143-128.1C(g)(1) in accordance with this subsection.

The claim of lien may be discharged by the private developer and surety jointly filing with the clerk of superior court of the county where the project is located a copy of the payment bond together with an affidavit executed by the surety stating that, as of the date of the filing of the payment bond with the clerk of superior court, the amount of the penal sum of the payment bond minus any amounts paid in good faith to other claimants on the project and minus the amount of all other claims of lien on real property filed against the property improved by the project exceeds the amount claimed by the lien claim being discharged by at least one hundred twenty-five percent (125%).

Notwithstanding any other contractual provision or law, where a claimant’s lien claim has been discharged under this subsection, the claimant shall have no less than one year from the date of being served with the payment bond and affidavit to file suit on the payment bond.

1. (a) Notice of a claim of lien upon funds shall set forth all of the following information:
2. (1) The name and address of the person claiming the lien upon funds.
3. (2) A general description of the real property improved.
4. (3) The name and address of the person with whom the lien claimant contracted to improve real property.
5. (4) The name and address of each person against or through whom subrogation rights are claimed.
6. (5) A general description of the contract and the person against whose interest the lien upon funds is claimed.
7. (6) The amount of the lien upon funds claimed by the lien claimant under the contract.
8. (b) All notices of claims of liens upon funds by first, second, or third tier subcontractors must be given using a form substantially as follows:
9. NOTICE OF CLAIM OF LIEN UPON FUNDS BY FIRST, SECOND, OR THIRD TIER SUBCONTRACTOR
10. To:

1. _, owner of property involved. (Name and address) 2. _, contractor. (Name and address) 3. _, first tier subcontractor against or through (Name and address) whom subrogation is claimed, if any.4. _, second tier subcontractor against or through (Name and address) whom subrogation is claimed, if any.

• General description of real property on which labor performed or material furnished:
• _
• _
• _
• General description of undersigned lien claimant’s contract including the names of the parties thereto:
• _
• _
• _
• The amount of lien upon funds claimed pursuant to the above described contract:
• $ _
• The undersigned lien claimant gives this notice of claim of lien upon funds pursuant to North Carolina law and claims all rights of subrogation to which he is entitled under Part 2 of Article 2 of Chapter 44A of the General Statutes of North Carolina.
• Dated _
• _, Lien Claimant
• _
• (Address)
• (c) All notices of claims of liens upon funds by subcontractors more remote than the third tier must be given using a form substantially as follows:
• NOTICE OF CLAIM OF LIEN UPON FUNDS BY SUBCONTRACTOR MORE REMOTE THAN THE THIRD TIER
• To:
• _, person holding funds against which lien upon funds is claimed.
• (Name and Address)
• General description of real property on which labor performed or material furnished:
• _
• _
• _
• General description of undersigned lien claimant’s contract including the names of the parties thereto:
• _
• _
• _
• The amount of lien upon funds claimed pursuant to the above described contract:
• $ _
• The undersigned lien claimant gives this notice of claim of lien upon funds pursuant to North Carolina law and claims all rights to which he or she is entitled under Part 2 of Article 2 of Chapter 44A of the General Statutes of North Carolina.
• Dated: _
• _, Lien Claimant
• _
• (Address)

(d) Notices of claims of lien upon funds under this section shall be served upon the obligor by personal delivery or in any manner authorized by Rule 4 of the North Carolina Rules of Civil Procedure. A copy of the notice of claim of lien upon funds shall be attached to any claim of lien on real property filed pursuant to G.S.44A-20(d).

(e) Notices of claims of lien upon funds shall not be filed with the clerk of superior court and shall not be indexed, docketed, or recorded in any way as to affect title to any real property, except a notice of a claim of lien upon funds may be filed with the clerk of superior court under either of the following circumstances: (1) When the notice of claim of lien upon funds is attached to a claim of lien on real property filed pursuant to G.S.44A-20(d).

(2) When the notice of claim of lien upon funds or a copy thereof is filed by the obligor for the purpose of discharging the claim of lien upon funds in accordance with G.S.44A-20(e). (f) Filing a notice of claim of lien upon funds pursuant to subsection (e) of this section is not a violation of G.S.44A-12.1.

1. (a) Upon receipt of the notice of claim of lien upon funds provided for in this Article, the obligor shall be under a duty to retain any funds subject to the lien or liens upon funds under this Article up to the total amount of such liens upon funds as to which notices of claims of lien upon funds have been received.
2. (b) If, after the receipt of the notice of claim of lien upon funds to the obligor, the obligor makes further payments to a contractor or subcontractor against whose interest the lien or liens upon funds are claimed, the lien upon funds shall continue upon the funds in the hands of the contractor or subcontractor who received the payment, and in addition the obligor shall be personally liable to the person or persons entitled to liens upon funds up to the amount of such wrongful payments, not exceeding the total claims with respect to which the notice of claim of lien upon funds was received prior to payment.
3. (c) If an obligor makes a payment after receipt of notice of claim of lien on funds and incurs personal liability under subsection (b) of this section, the obligor shall be entitled to reimbursement and indemnification from the party receiving such payment.

(d) If the obligor is an owner of the property being improved, the lien claimant shall be entitled to a claim of lien upon real property upon the interest of the obligor in the real property to the extent of the owner’s personal liability under subsection (b) of this section, which claim of lien on real property shall be enforced only in the manner set forth in G.S.44A-7 through G.S.44A-16 and which claim of lien on real property shall be entitled to the same priorities and subject to the same filing requirements and periods of limitation applicable to the contractor.

• The claim of lien on real property is perfected as of the time set forth in G.S.44A-10 upon satisfaction of those requirements set forth in G.S.44A-11.
• A lien waiver signed by the contractor prior to a subcontractor’s perfecting its claim of lien on real property in accordance with G.S.44A-11 waives the subcontractor’s right to enforce the contractor’s claim of lien on real property, but does not affect the subcontractor’s right to a claim of lien on funds or the subcontractor’s right to a claim of lien on real property allowed under this subsection.

The claim of lien on real property as provided under this subsection shall be in the form set out in G.S.44A-12(c) and shall contain, in addition, a copy of the notice of claim of lien upon funds given pursuant to G.S.44A-19 as an exhibit together with proof of service thereof by affidavit, and shall state the grounds the lien claimant has to believe that the obligor is personally liable for the debt under subsection (b) of this section.

E) A notice of claim of lien upon funds under G.S.44A-19 may be filed by the obligor with the clerk of superior court in each county where the real property upon which the filed notice of claim of lien upon funds is located for the purpose of discharging the notice of claim of lien upon funds by any of the methods described in G.S.44A-16.

(f) A bond deposited under this section to discharge a filed notice of claim of lien upon funds shall be effective to discharge any claim of lien on real property filed by the same lien claimant pursuant to subsection (d) of this section or G.S.44A-23 and shall further be effective to discharge any notices of claims of lien upon funds served by lower tier subcontractors or any claims of lien on real property filed by lower tier subcontractors pursuant to subsection (d) of this section or G.S.44A-23 claiming through or against the contractor or higher tier subcontractors up to the amount of the bond.

(a) Where the obligor is a contractor or subcontractor and the funds in the hands of the obligor and the obligor’s personal liability, if any, under G.S.44A-20 are less than the amount of valid liens upon funds that have been received by the obligor under this Article, the parties entitled to liens upon funds shall share the funds on a pro rata basis.

(b) Where the obligor is an owner and the funds in the hands of the obligor and the obligor’s personal liability, if any, under G.S.44A-20 are less than the sum of the amount of valid claims of liens upon funds that have been received by the obligor under this Article and the amount of the valid claims of liens on real property upon the owner’s property filed by the subcontractors with the clerk of superior court under G.S.44A-23, the parties entitled to liens upon funds and the parties entitled to subrogation claims of liens on real property upon the owner’s property shall share the funds on a pro rata basis.

Liens upon funds perfected under this Article have priority over all other interests or claims theretofore or thereafter created or suffered in the funds by the person against whose interest the lien upon funds is asserted, including, but not limited to, liens arising from garnishment, attachment, levy, judgment, assignments, security interests, and any other type of transfer, whether voluntary or involuntary.

Any person who receives payment from an obligor in bad faith with knowledge of a lien upon funds shall take such payment subject to the lien upon funds. If any contractor or other person receiving payment from an obligor for an improvement to real property or from a purchaser for a conveyance of real property with improvements subject to this Article or to Article 3 of this Chapter shall knowingly furnish to such obligor, purchaser, or to a lender who obtains a security interest in said real property, or to a title insurance company insuring title to such real property, a false written statement of the sums due or claimed to be due for labor or material furnished at the site of improvements to such real property, then such contractor, subcontractor or other person shall be guilty of a Class 1 misdemeanor.

• Upon conviction and in the event the court shall grant any defendant a suspended sentence, the court may in its discretion include as a condition of such suspension a provision that the defendant shall reimburse the party who suffered loss on such conditions as the court shall determine are proper.
• The elements of the offense herein stated are the furnishing of the false written statement with knowledge that it is false and the subsequent or simultaneous receipt of payment from an obligor or purchaser by the person signing the document, a person directing another to sign the document, or any person or entity for whom the document was signed.

In any criminal prosecution hereunder it shall not be necessary for the State to prove that the obligor, purchaser, lender or title insurance company relied upon the false statement or that any person was injured thereby. In addition to the criminal sanctions created by this section, conduct constituting the offense herein stated and causing actual harm to any person by any licensed contractor or qualifying party, as that term is used in Chapter 87 of the General Statutes, shall constitute deceit and misconduct subject to disciplinary action under Chapter 87 of the General Statutes, including revocation, suspension, or restriction of a license or the ability to act as a qualifying party for a license.

Who does the Construction Act apply to Ontario?

Mandatory Performance and Payment Bonds: – The Construction Act of Ontario features a new Section 85 which requires any contractor who enters into a “public contract” in the amount of $500,000 or greater to provide 50% performance and payment bonds using the prescribed forms.

1. The term “Public Contract” is very broadly defined in the Act and includes any contract where “the owner is the Crown, a municipality or a broader public sector organization.”.
2. In the AFP/P3 context, Section 1.1 (4) 1 of the Act provides that “.the agreement between the special purpose entity and the contractor is deemed, for the purposes of (surety bonding), to be a public contract”.

These provisions are modified somewhat by the regulations which have been approved by Cabinet. A more detailed discussion of the surety-related regulations can be found by CLICKING HERE, To review copies of the prescribed bond forms, click links below:

• Form 31 – Labour and Material Payment Bond
• Form 32 – Performance Bond

How long does a contractor have to file a lien in Nevada?

Nevada Mechanics Lien FAQs Preliminary notice deadlines Notice of Intent 15 days prior to lien on residential projects. Mechanics liens deadlines Lien must be filed within 90 days of last providing labor or materials, or completion of work (whichever is later).

In Nevada, an action to enforce a mechanics lien must be initiated within 6 months from lien’s filing. This deadline may not be extended, and failure to meet the deadline renders the lien unenforceable. Preliminary notice deadlines Notice to owner and prime within 31 days of first furnishing labor or materials.

Notice of Intent 15 days prior to lien on residential projects (not required for laborers). Mechanics liens deadlines Lien must be filed within 90 days of last providing labor or materials, or completion of work (whichever is later). In Nevada, an action to enforce a mechanics lien must be initiated within 6 months from lien’s filing.

• This deadline may not be extended, and failure to meet the deadline renders the lien unenforceable.
• Preliminary notice deadlines Notice to owner and prime within 31 days of first furnishing labor or materials.
• Notice of Intent 15 days prior to lien on residential projects (not required for laborers).
• Mechanics liens deadlines Lien must be filed within 90 days of last providing labor or materials, or completion of work (whichever is later).

In Nevada, an action to enforce a mechanics lien must be initiated within 6 months from lien’s filing. This deadline may not be extended, and failure to meet the deadline renders the lien unenforceable. Contractors, suppliers, property owners, construction lenders, and other vendors will encounter all kinds of lien-related paperwork and questions when working on Nevada construction jobs.

1. Here are some of the common issues you may encounter, and answers written by construction attorneys and payment experts.
2. Nevada mechanics lien laws are exceptionally inclusive.
3. Generally, any party who provides in relation to the improvement, property, or work of improvement is entitled to lien rights in Nevada.

This also includes equipment lessors, engineers, architects, surveyors, and geologists. Further, NV lien law is so broad that it may extend to consultants performing work at the project site. Special rules used to apply to suppliers such that in order to have lien rights, the materials were required to be actually used and/or consumed into the project.

A, in which the 2005 modifications to the wording of the mechanics lien statutes were finally examined, overturned this requirement. Material suppliers now only must show that the materials were furnished for use in the project. No. Although it’s never a good idea to perform work without a written contract, the NV lien law specifically defines a contract as a “written or oral agreement.” So a written contract is not required to have lien rights in Nevada.

• See: No, a full is not necessary. Nevada only requires a “description of the property to be charged with the notice of lien sufficient for identification.” This is generally regarded as a description which would enable a party familiar with the location to identify the property with reasonable certainty.

However, the description should be as precise as possible to avoid any confusion or challenging of the description. Furthermore, if you do provide the legal property description, the name and address of the party who prepared the description should be included as well. No, attorney’s fees, collection costs (cost of preparing and filing the lien), and interest are not allowed to be included in the but may be awarded by the court when the lien is foreclosed.

Reasonable overhead and profit may be allowed, but Nevada specifically prohibits, Generally, the lienable amount is the unpaid contract amount subtracting any deductions or credits and adding any, Nevada mechanic lien claims are documents recorded with the county recorder office.

For your mechanic’s lien to be valid, you must record it in the county where the job is physically located, Nevada’s counties each have their own unique rules and requirements. To help you, we’ve assembled all of the offices in There are a lot of questions answered on this page about who can file a Nevada mechanics lien, when it must be filed, what types of rules apply, and more.

But you may be wondering something much more practical: how do I actually get my mechanics lien recorded and filed in Nevada? Yes. Nevada requires that, in addition to recording the mechanics lien with the county recorder, a copy of the lien must be served on the owner of the property within 30 days after the recording of the lien.

• Lastly, if the owner’s address cannot be determined, service can be completed by doing all of the following:
• • Posting a copy in a conspicuous place on the property;
• • Delivering a copy to a person residing at the property (if applicable); &
• • Mailing a copy to the owner at one of the following addresses:
• • The property improved;
• • The address identified in the deed;
• • The address identified in the county assessor’s office; or
• • The address identified in county recorder’s office.

Yes, a in Nevada at any time before a foreclosure action is commenced, or any time during the trial prior to the entry of a judgment. A lien may be amended to correct any misstatements in the notice of lien. However, a claimant may not correct a property description if the amendment “prejudices a bona fide purchaser.” If a lien amendment is filed, a copy must be served in the same manner as a copy of the Notice of Lien.

In Nevada, an action to enforce a mechanics lien must be initiated at least 30 days after the lien was recorded, but no later than 6 months after the date of recording. The enforcement deadline may be extended under by filing a written agreement between the claimant and the property owner that is signed and notarized.

This will extend the enforcement period for an additional period which cannot exceed 1 year from the date the claim was filed. Lastly, an extension will not be available if there are other notices of liens on the property and the extension will “delay or postpone the collection of other liens.” Yes, Nevada is considered a “.

1. It depends, but generally no, liens will not have priority over any “pre-existing” encumbrances.
2. In Nevada, over 1) any lien, mortgage, or other encumbrance that attaches to the property after the commencement of a work of improvement; and 2) any lien, mortgage, or other encumbrance which was unrecorded and of which the mechanic’s lien claimant had no knowledge at the commencement of the work.
3. • See:
4. Any encumbrance imposed on the property after the beginning of work is subordinate to the mechanics liens – regardless of the date on which the mechanics liens were recorded.

If a mechanics lien is satisfied, and the lien claimant receives a written request to the lien claimant is required to record a discharge or release of the lien “as soon as practicable” but no later than 10 days after the satisfaction thereof. Failure to do so may result in fines up to $100 or more and liability for any costs or attorney fees.

→ Nevada has rules prohibiting unlicensed contractors from filing a lien claim (at N.R.S.108.222). However, the Nevada lien statute does not appear to limit lien rights for suppliers who supply materials to unlicensed contractors, and that would align with most states’ stances on the matter. Typically, loss of the right to lien applies only the party who failed to obtain the proper licensure.

A change order, if properly executed, is a change to the underlying contract. Accordingly, work performed pursuant to a valid change order is generally part of the contract amount which may be protected/recovered through a mechanics lien filing. Note, specifically, an FAQ regarding what amounts may be included in a Nevada mechanics lien states: ” Generally, the lienable amount is the unpaid contract amount subtracting any deductions or credits and adding any,” The State of Nevada requires that the Release of Lien form substantially comply with the wording proscribed within NRS 108.2457(5), which states: “The waiver and release given by any lien claimant is unenforceable unless it is in the following forms in the following circumstances” and then it goes on to describe the form for each circumstance.

Since the Project is completed, you should be providing a lien release that says it is a “Conditional Waiver and Release Upon Final Payment” and said release should be conditioned on your receipt of the money. If the New Jersey Release says that it is an “unconditional release upon final payment,” I would not sign it.

Because I am not familiar with the New Jersey releases, I would suggest you find a construction attorney and meet with them to make sure the New Jersey Form is not going to cause you any problems. Good Luck. Contractors & suppliers have strong lien rights in Nevada.

1. If a contractor or supplier isn’t paid on an Nevada job, they can turn to filing a lien to speed up payment and protect themselves.
2. However, there are specific requirements and rules that must be followed.
3. Here are 5 essential things you need to know about Nevada’s mechanics lien law.
4. Nevada mechanics lien law is especially inclusive.

As long as a party provided labor and/or materials worth $500 or more, they likely have Nevada mechanics lien rights. Parties provided protection include contractors, subcontractors, suppliers, equipment lessors, architects, engineers, surveyors, geologists are all allowed lien rights.

• Even consultants performing work at the project site may be allowed rights! The only project participants with a hoop to jump through are material suppliers.
• Suppliers only have lien rights if the materials provided are actually used for the project.
• It is not enough for materials only to be delivered to the property – they must be used and/or consumed into the project.

Further, it is worth noting that if the potential lien claimant is required to be licensed by Nevada for the type of work performed, that party may only claim a Nevada mechanics lien if he is licensed as required. A mechanics lien in Nevada must be filed with the county recorder (in the county where the property is located) within 90 days of the date the lien claimant last provided labor and/or materials to the project or 90 days from the project’s completion or termination – whichever is later.

However, if a Notice of Completion is filed, the time in which to file a Nevada mechanics lien is cut by more than half to only 40 days from the filing of the Notice of Completion. On residential projects, a Notice of Intent to Lien must be sent to the property owner 15 days prior to filing the lien.

Unlike many other states, the service of this notice in Nevada extends the time for filing the lien by 15 days. Typically all project participants are required to send a Notice of Right to Lien within 31 days of the date that labor and/or materials were first provided.

• Individuals exempt from this preliminary notice are parties who contracted directly with the property owner and wage laborers.
• The Notice of Right to Lien must be sent to both the property owner and the general contractor.
• Residential project require an additional notice to be sent.
• As noted above, a Notice of Intent to Lien is required to be sent to the property owner 15 days prior to filing a lien on a residential project – and the service of this notice extends the lien filing period for 15 days.

Although general contractors are generally not required to send preliminary notice, the State Contractors Board may assess a penalty if a copy of the lien information notice has not been delivered to each subcontractor. Notices are required in Nevada.

Get yours today In Nevada, not only it is required that a mechanics lien be recorded at the county recorder in the county where the property is located, a copy of the lien must also be sent to both the property owner and the general contractor via certified mail with return receipt requested within 30 days from the date the lien was filed.

Failure to send a copy of the lien to the property owner may result in the lien being invalidated, and failure to send a copy of the lien to the general contractor may result in disciplinary proceedings against the subcontractor. Generally, a lien includes the amount of an unpaid contract, subtracting any deductions or credits and adding any change orders. In our, we will walk you through each step required to qualify for and file a Nevada mechanics lien. This guide explains the notices you need to send, the information required on the Nevada mechanics lien form, and essential tips about delivering it to the county office for recording. Be careful! Accuracy is important. It’s vital that you get this part right. That’s because Nevada has strict requirements for which information you need to include. could invalidate your claim entirely. Include all the required information and make sure it’s 100% accurate. Before you file, sign and notarize the claim. After you prepare your claim, sign it, and notarize it, it’s time to file the lien. File your lien with the recorder in the Nevada county where the property is located. Each county has its own rules, so check out the to find the contact information, fees, and requirements of your local recorder’s office. The second to last step is to serve the lien on the property owner. You must do this within 30 days after filing. Send your copy via certified mail, return receipt requested. Failure to serve the lien within the 30 day deadline invalidates your lien claim.

The provisions of the Nevada statutes that permit the filing of mechanics liens and materialman’s liens can be found in Nevada’s Construction Lien Law, The full text of the Nevada Construction Lien Law is provided below, and has been updated as of 2022. As used in NRS 108.221 to 108.246, inclusive, unless the context otherwise requires, the words and terms defined in NRS 108.22104 to 108.22188, inclusive, have the meanings ascribed to them in those sections.

“Agent of the owner” means every architect, builder, contractor, engineer, geologist, land surveyor, lessee, miner, subcontractor or other person having charge or control of the property, improvement or work of improvement of the owner, or any part thereof.

• “Completion of the work of improvement” means:
• 1. The occupation or use by the owner, an agent of the owner or a representative of the owner of the work of improvement, accompanied by the cessation of all work on the work of improvement;
• 2. The acceptance by the owner, an agent of the owner or a representative of the owner of the work of improvement, accompanied by the cessation of all work on the work of improvement; or

3. The cessation of all work on a work of improvement for 30 consecutive days, provided a notice of completion is timely recorded and served and the work is not resumed under the same contract. “Construction control” has the meaning ascribed to it in NRS 627.050.

1. “Improvement” means the development, enhancement or addition to property, by the provision of work, materials or equipment. The term includes, without limitation:
2. 1. A building, railway, tramway, toll road, canal, water ditch, flume, aqueduct, reservoir, bridge, fence, street, sidewalk, fixtures or other structure or superstructure;
3. 2. A mine or a shaft, tunnel, adit or other excavation, designed or used to prospect, drain or work a mine;
4. 3. A system for irrigation, plants, sod or other landscaping;
5. 4. The demolition or removal of existing improvements, trees or other vegetation;
6. 5. The drilling of test holes;
7. 6. Grading, grubbing, filling or excavating;
8. 7. Constructing or installing sewers or other public utilities; and

8. Constructing a vault, cellar or room under sidewalks or making improvements to the sidewalks in front of or adjoining the property. “Lien” means the statutory rights and security interest in a construction disbursement account established pursuant to NRS 108.2403, or property or any improvements thereon provided to a lien claimant by NRS 108.221 to 108.246, inclusive.

“Lienable amount” means the principal amount of a lien to which a lien claimant is entitled pursuant to subsection 1 of NRS 108.222. “Lien claimant” means any person who provides work, material or equipment with a value of $500 or more to be used in or for the construction, alteration or repair of any improvement, property or work of improvement.

The term includes, without limitation, every artisan, builder, potential claimant under NRS 608.150, contractor, laborer, lessor or renter of equipment, materialman, miner, subcontractor or other person who provides work, material or equipment, and any person who performs services as an architect, engineer, land surveyor or geologist, in relation to the improvement, property or work of improvement.

• 1. “Owner” includes:
• (a) The record owner or owners of the property or an improvement to the property as evidenced by a conveyance or other instrument which transfers that interest to the record owner or owners and is recorded in the office of the county recorder in which the improvement or the property is located;
• (b) The reputed owner or owners of the property or an improvement to the property;
• (c) The owner or owners of the property or an improvement to the property, as shown on the records of the county assessor for the county where the property or improvement is located;
• (d) The person or persons whose name appears as owner of the property or an improvement to the property on the building permit;
• (e) A person who claims an interest in or possesses less than a fee simple estate in the property;
• (f) This State or a political subdivision of this State, including, without limitation, an incorporated city or town, that owns the property or an improvement to the property if the property or improvement is used for a private or nongovernmental use or purpose; or
• (g) A person described in paragraph (a), (b), (c), (d) or (e) who leases the property or an improvement to the property to this State or a political subdivision of this State, including, without limitation, an incorporated city or town, if the property or improvement is privately owned.
• 2. The term does not include:
• (a) A mortgagee;
• (b) A trustee or beneficiary of a deed of trust;
• (c) The owner or holder of a lien encumbering the property or an improvement to the property; or
• (d) Except as otherwise provided in paragraph (f) of subsection 1, this State or a political subdivision of this State, including, without limitation, an incorporated city or town.

“Prevailing lien claimant” means a lien claimant to whom an amount is found due by a trier of fact on a notice of lien or a claim against a surety bond. “Prime contract” means a contract between a prime contractor and the owner or lessee of property about which the contract relates.

“Prime contractor” means: 1. A person who contracts with an owner or a lessee of property to provide work, materials or equipment to be used for the improvement of the property or in the construction, alteration or repair of a work of improvement; or 2. A person who is an owner of the property, is licensed as a general contractor pursuant to chapter 624 of NRS and provides work, materials or equipment to be used for the improvement of the property or in the construction, alteration or repair of a work of improvement.

“Principal,” as pertaining to a surety bond, means the debtor of the lien claimant or a party in interest in the property subject to the lien whose name and signature appear as principal on a surety bond. “Property” means the land, real property or mining claim of an owner for which a work of improvement was provided, including all buildings, improvements and fixtures thereon, and a convenient space on, around and about the same, or so much as may be required for the convenient use and occupation thereof.

Surety” means a corporation authorized to transact surety business in this state pursuant to NRS 679A.030 that: 1. Is included in the United States Department of the Treasury’s Listing of Approved Sureties; and 2. Issues a surety bond pursuant to NRS 108.2413 to 108.2425, inclusive, that does not exceed the underwriting limitations established for that surety by the United States Department of the Treasury.

“Surety bond” means a bond issued by a surety for the release of a prospective or existing lien pursuant to NRS 108.2413 to 108.2425, inclusive. “Work” means the planning, design, geotechnical and environmental investigations, surveying, labor and services provided by a lien claimant for the construction, alteration or repair of any improvement, property or work of improvement whether the work is completed or partially completed.

“Work of improvement” means the entire structure or scheme of improvement as a whole, including, without limitation, all work, materials and equipment to be used in or for the construction, alteration or repair of the property or any improvement thereon, whether under multiple prime contracts or a single prime contract except as follows: 1.

If a scheme of improvement consists of the construction of two or more separate buildings and each building is constructed upon a separate legal parcel of land and pursuant to a separate prime contract for only that building, then each building shall be deemed a separate work of improvement; and 2.

If the improvement of the site is provided for in a prime contract that is separate from all prime contracts for the construction of one or more buildings on the property, and if the improvement of the site was contemplated by the contracts to be a separate work of improvement to be completed before the commencement of construction of the buildings, the improvement of the site shall be deemed a separate work of improvement from the construction of the buildings and the commencement of construction of the improvement of the site does not constitute the commencement of construction of the buildings.

As used in this subsection, “improvement of the site” means the development or enhancement of the property, preparatory to the commencement of construction of a building, and includes:

1. (a) The demolition or removal of improvements, trees or other vegetation;
2. (b) The drilling of test holes;
3. (c) Grading, grubbing, filling or excavating;
4. (d) Constructing or installing sewers or other public utilities; or
5. (e) Constructing a vault, cellar or room under sidewalks or making improvements to the sidewalks in front of or adjoining the property.

1. Except as otherwise provided in subsection 2, a lien claimant has a lien upon the property, any improvements for which the work, materials and equipment were furnished or to be furnished, and any construction disbursement account established pursuant to NRS 108.2403, for: (a) If the parties agreed, by contract or otherwise, upon a specific price or method for determining a specific price for some or all of the work, material and equipment furnished or to be furnished by or through the lien claimant, the unpaid balance of the price agreed upon for such work, material or equipment, as the case may be, whether performed, furnished or to be performed or furnished at the instance of the owner or the owner’s agent; and (b) If the parties did not agree, by contract or otherwise, upon a specific price or method for determining a specific price for some or all of the work, material and equipment furnished or to be furnished by or through the lien claimant, including, without limitation, any additional or changed work, material or equipment, an amount equal to the fair market value of such work, material or equipment, as the case may be, including a reasonable allowance for overhead and a profit, whether performed, furnished or to be performed or furnished at the instance of the owner or at the instance of the owner’s agent.2.

If a contractor or professional is required to be licensed pursuant to the provisions of NRS to perform the work, the contractor or professional will only have a lien pursuant to subsection 1 if the contractor or professional is licensed to perform the work.1. The liens provided for in NRS 108.221 to 108.246, inclusive, are preferred to: (a) Any lien, mortgage or other encumbrance which may have attached to the property after the commencement of construction of a work of improvement.

(b) Any lien, mortgage or other encumbrance of which the lien claimant had no notice and which was unrecorded against the property at the commencement of construction of a work of improvement.2. Every mortgage or encumbrance imposed upon, or conveyance made of, property affected by the liens provided for in NRS 108.221 to 108.246, inclusive, after the commencement of construction of a work of improvement are subordinate and subject to the liens provided for in NRS 108.221 to 108.246, inclusive, regardless of the date of recording the notices of liens.

• 1. To perfect a lien, a lien claimant must record a notice of lien in the office of the county recorder of the county where the property or some part thereof is located in the form provided in subsection 5:
• (a) Within 90 days after the date on which the latest of the following occurs:
• (1) The completion of the work of improvement;
• (2) The last delivery of material or furnishing of equipment by the lien claimant for the work of improvement; or
• (3) The last performance of work by the lien claimant for the work of improvement; or

(b) Within 40 days after the recording of a valid notice of completion, if the notice of completion is recorded and served in the manner required pursuant to NRS 108.228.

1. 2. The notice of lien must contain:
2. (a) A statement of the lienable amount after deducting all just credits and offsets.
3. (b) The name of the owner if known.
4. (c) The name of the person by whom the lien claimant was employed or to whom the lien claimant furnished the material or equipment.
5. (d) A brief statement of the terms of payment of the contract.
6. (e) A description of the property to be charged with the notice of lien sufficient for identification.

3. The notice of lien must be verified by the oath of the lien claimant or some other person. The notice of lien need not be acknowledged to be recorded.4. It is unlawful for a person knowingly to make a false statement in or relating to the recording of a notice of lien pursuant to the provisions of this section.

• 5. A notice of lien must be substantially in the following form:
• Assessor’s Parcel Numbers
• NOTICE OF LIEN
• The undersigned claims a lien upon the property described in this notice for work, materials or equipment furnished or to be furnished for the improvement of the property:
• 1. The amount of the original contract is: $
• 2. The total amount of all additional or changed work, materials and equipment, if any, is: $

3. The total amount of all payments received to date is: $.4. The amount of the lien, after deducting all just credits and offsets, is: $ 5. The name of the owner, if known, of the property is:,6. The name of the person by whom the lien claimant was employed or to whom the lien claimant furnished or agreed to furnish work, materials or equipment is:,7.

1. (Print Name of Lien Claimant)
2. By:.
3. (Authorized Signature)
4. State of Nevada )
5. ) ss.

County of,)

• . (print name), being first duly sworn on oath according to law, deposes and says:
• I have read the foregoing Notice of Lien, know the contents thereof and state that the same is true of my own personal knowledge, except those matters stated upon information and belief, and, as to those matters, I believe them to be true.
• (Authorized Signature of Lien Claimant)
• Subscribed and sworn to before me
• this day of the month of of the year,
• Notary Public in and for
• the County and State

6. Except as otherwise provided in subsection 7, if a work of improvement involves the construction, alteration or repair of multifamily or single-family residences, including, without limitation, apartment houses, a lien claimant, except laborers, must serve a 15-day notice of intent to lien incorporating substantially the same information required in a notice of lien upon both the owner and the reputed prime contractor before recording a notice of lien.

Service of the notice of intent to lien must be by personal delivery or certified mail and will extend the time for recording the notice of lien described in subsection 1 by 15 days. A notice of lien for materials or equipment furnished or to be furnished for work or services performed or to be performed, except labor, for a work of improvement involving the construction, alteration or repair of multifamily or single-family residences may not be perfected or enforced pursuant to NRS 108.221 to 108.246, inclusive, unless the 15-day notice of intent to lien has been given to the owner.7.

The provisions of subsection 6 do not apply to the construction of any nonresidential construction project.1. In addition to the requirements of NRS 108.226, a copy of the notice of lien must be served upon the owner of the property within 30 days after recording the notice of lien, in one of the following ways:

1. (a) By personally delivering a copy of the notice of lien to the owner or registered agent of the owner;
2. (b) By mailing a copy of the notice of lien by certified mail, return receipt requested, to the owner at the owner’s place of residence or the owner’s usual place of business or to the registered agent of the owner at the address of the registered agent; or
3. (c) If the place of residence or business of the owner and the address of the registered agent of the owner, if applicable, cannot be determined, by:
4. (1) Fixing a copy of the notice of lien in a conspicuous place on the property;
5. (2) Delivering a copy of the notice of lien to a person there residing, if such a person can be found; and
6. (3) Mailing a copy of the notice of lien addressed to the owner at:
7. (I) The place where the property is located;
8. (II) The address of the owner as identified in the deed;
9. (III) The address identified in the records of the office of the county assessor; or
10. (IV) The address identified in the records of the county recorder of the county in which the property is located.

2. If there is more than one owner, failure to serve a copy of the notice of lien upon a particular owner does not invalidate a notice of lien if properly served upon another owner.3. Each subcontractor who participates in the construction, improvement, alteration or repair of a work of improvement shall deliver a copy of each notice of lien required by NRS 108.226 to the prime contractor.

• 2. The motion must:
• (a) Set forth in detail the legal and factual grounds upon which relief is requested; and
• (b) Be supported by:
• (1) A notarized affidavit signed by the applicant setting forth a concise statement of the facts upon which the motion is based; and
• (2) Documentary evidence in support of the affidavit, if any.

3. If the court issues an order for a hearing, the applicant shall serve notice of the application and order of the court on the lien claimant within 3 days after the court issues the order. The court shall conduct the hearing within not less than 15 days or more than 30 days after the court issues the order for a hearing.4.

The order for a hearing must include a statement that if the lien claimant fails to appear at the time and place noted, the notice of lien will be released with prejudice and the lien claimant will be ordered to pay the reasonable costs the applicant incurs in bringing the motion, including reasonable attorney’s fees.5.

If, at the time the application is filed, an action to foreclose the notice of lien has not been filed, the clerk of the court shall assign a number to the application and obtain from the applicant a filing fee of $85. If an action has been filed to foreclose the notice of lien before the application was filed pursuant to this section, the application must be made a part of the action to foreclose the notice of lien.

1. 6. If, after a hearing on the matter, the court determines that:
2. (a) The notice of lien is frivolous and was made without reasonable cause, the court shall make an order releasing the lien and awarding costs and reasonable attorney’s fees to the applicant for bringing the motion.
3. (b) The amount of the notice of lien is excessive, the court may make an order reducing the notice of lien to an amount deemed appropriate by the court and awarding costs and reasonable attorney’s fees to the applicant for bringing the motion.
4. (c) The notice of lien is not frivolous and was made with reasonable cause or that the amount of the notice of lien is not excessive, the court shall make an order awarding costs and reasonable attorney’s fees to the lien claimant for defending the motion.

7. Proceedings conducted pursuant to this section do not affect any other rights and remedies otherwise available to the parties.8. An appeal may be taken from an order made pursuant to subsection 6. A stay may not be granted if the district court does not release the lien pursuant to subsection 6.9.

If an order releasing or reducing a notice of lien is entered by the court, and the order is not stayed, the applicant may, within 5 days after the order is entered, record a certified copy of the order in the office of the county recorder of the county where the property or some part thereof is located.

The recording of a certified copy of the order releasing or reducing a notice of lien is notice to any interested party that the notice of lien has been released or reduced.1. The owner may record a notice of completion after the completion of the work of improvement.

• 2. The notice of completion must be recorded in the office of the county recorder of the county where the property is located and must set forth:
• (a) The date of completion of the work of improvement.
• (b) The owner’s name or owners’ names, as the case may be, the address of the owner or addresses of the owners, as the case may be, and the nature of the title, if any, of the person signing the notice.
• (c) A description of the property sufficient for identification.
• (d) The name of the prime contractor or names of the prime contractors, if any.

3. The notice must be verified by the owner or by some other person on the owner’s behalf. The notice need not be acknowledged to be recorded.4. Upon recording the notice pursuant to this section, the owner shall, within 10 days after the notice is recorded, deliver a copy of the notice by certified mail, to: (a) Each prime contractor with whom the owner contracted for all or part of the work of improvement.

(b) Each potential lien claimant who, before the notice was recorded pursuant to this section, either submitted a request to the owner to receive the notice or delivered a preliminary notice of right to lien pursuant to NRS 108.245.5. The failure of the owner to deliver a copy of the notice of completion in the time and manner provided in this section renders the notice of completion ineffective with respect to each prime contractor and lien claimant to whom a copy was required to be delivered pursuant to subsection 4.1.

In every case in which a notice of lien is recorded against two or more separate buildings or mining claims that are owned by the same person and that are located on separate legal parcels that existed at the commencement of construction, the lien claimant must, at the time of recording the notice of lien, designate the lienable amount due on each building or mining claim.2.

• The lien of a lien claimant only applies to the lienable amount designated in the notice of lien, plus all amounts that may be awarded by the court pursuant to NRS 108.237, as against other creditors having liens by judgment or otherwise, upon the buildings or mining claims.
• However, the lienable amount chargeable to the interest of the owner in each building must be the total amount of the lien claimant’s notice of lien, without regard to the proportionate amount designated to each separate building in the lien claimant’s notice of lien, plus all amounts that may be awarded by the court pursuant to NRS 108.237, but upon the trial thereof, the court may, where it deems it equitable to do so, distribute the lien equitably as among the several buildings involved.3.

If a lien claimant fails to designate in the notice of lien the amount due on each separate building as provided in subsection 1, the lien claimant’s notice of lien must be postponed to the notices of lien of other lien claimants and other encumbrancers for value who have designated the amount due on each building or mining claim but must not be inferior to any rights or interests of the owner.

• For purposes of this subsection, a lien claimant’s lien must not be postponed to other liens or encumbrances if the lien claimant’s designation among the parcels was estimated by the lien claimant in good faith or was based upon a pro rata division of the total lienable amount.
• The county recorder of the county in which property that is subject to a lien is located must record the notice of lien in a book kept by the county recorder for that purpose, which record must be indexed as deeds and other conveyances are required by law to be indexed, and for which the county recorder may receive the same fees as are allowed by law for recording deeds and other instruments.1.

A lien provided for in NRS 108.221 to 108.246, inclusive, must not bind the property subject to the lien for a period longer than 6 months after the date on which the notice of lien was recorded, unless: (a) Proceedings are commenced in a proper court within that time to enforce the same; or (b) The time to commence the action is extended by a written instrument signed by the lien claimant and by a person or persons in interest in the property subject to the lien, in which event, and as to only that person or those persons in interest signing the agreement, the time is extended, but no extension is valid unless in writing and recorded in the county recorder’s office in which the notice of lien is recorded and unless the extension agreement is recorded within the 6-month period.

1. The extension agreement, to be recorded, must be acknowledged as required by law for the acknowledgment of deeds.
2. An action may be commenced within the extended time only against the persons signing the extension agreement and only as to their interests in the property are affected, and upon the lapse of the time specified in the extension agreement, an action may not thereafter be commenced, nor may a second extension be given.2.

For all purposes, a notice of lien shall be deemed to have expired as a lien against the property after the lapse of the 6-month period provided in subsection 1, and the recording of a notice of lien does not provide actual or constructive notice after the lapse of the 6-month period and as a lien on the property referred to in the notice of lien, unless, before the lapse of the 6-month period an extension agreement has been recorded, in which event, the lien will only continue as a lien on the interests of those persons signing the extension for the period specified in the extension.

1. An extension must not be given for a period in excess of 1 year beyond the date on which the notice of lien is recorded.3.
2. If there are other notices of lien outstanding against the property, an extension must not be given upon a notice of lien which will tend to delay or postpone the collection of other liens evidenced by a notice of lien or encumbrances against the property.1.

Except as otherwise provided in subsection 2, every improvement constructed, altered or repaired upon property shall be deemed to have been constructed, altered or repaired at the instance of each owner having or claiming any interest therein, and the interest owned or claimed must be subject to each notice of lien recorded in accordance with the provisions of NRS 108.221 to 108.246, inclusive.

1. 2. The interest of a disinterested owner in any improvement and the property upon which an improvement is constructed, altered or repaired is not subject to a notice of lien if the disinterested owner, within 3 days after he or she first obtains knowledge of the construction, alteration or repair, or the intended construction, alteration or repair, gives notice that he or she will not be responsible for the improvement by recording a notice in writing to that effect with the county recorder of the county where the property is located and, in the instance of a disinterested owner who is:
2. (a) A lessor, the notice of nonresponsibility shall be deemed timely recorded if the notice is recorded within 3 days immediately following the effective date of the lease or by the time of the execution of the lease by all parties, whichever occurs first; or
3. (b) An optionor, the notice of nonresponsibility shall be deemed timely recorded if the notice is recorded within 3 days immediately following the date on which the option is exercised in writing.
4. 3. To be effective and valid, each notice of nonresponsibility recorded pursuant to this section must identify:
5. (a) The names and addresses of the disinterested owner and the person who is causing the work of improvement to be constructed, altered or repaired;
6. (b) The location of the improvement and the address and legal description of the property upon which the improvement is or will be constructed, altered or repaired;
7. (c) The nature and extent of the disinterested owner’s interest in the improvement and the property upon which the improvement is or will be constructed, altered or repaired;
8. (d) The date on which the disinterested owner first learned of the construction, alteration or repair of the improvement that is the subject of the notice of nonresponsibility; and

(e) Whether the disinterested owner has notified the lessee in writing that the lessee must comply with the requirements of NRS 108.2403.

• 4. To be effective and valid, each notice of nonresponsibility that is recorded by a lessor pursuant to this section must be served by personal delivery or by certified mail, return receipt requested:
• (a) Upon the lessee within 10 days after the date on which the notice of nonresponsibility is recorded pursuant to subsection 2; and
• (b) Upon the prime contractor for the work of improvement within 10 days after the date on which the lessee contracts with the prime contractor for the construction, alteration or repair of the work of improvement.
• 5. If the prime contractor for the work of improvement receives a notice of nonresponsibility pursuant to paragraph (b) of subsection 4, the prime contractor shall:
• (a) Post a copy of the notice of nonresponsibility in an open and conspicuous place on the property within 3 days after receipt of the notice of nonresponsibility; and
• (b) Serve a copy of the notice of nonresponsibility by personal delivery, facsimile or by certified mail, return receipt requested, upon each lien claimant from whom a notice of right to lien was received, within 10 days after receipt of the notice of nonresponsibility or a notice of right to lien, whichever occurs later.

6. An owner who does not comply with the provisions of this section may not assert any claim that the owner’s interest in any improvement and the property upon which an improvement is constructed, altered or repaired is not subject to or is immune from the attachment of a lien pursuant to NRS 108.221 to 108.246, inclusive.7.

As used in this section, “disinterested owner” means an owner who: (a) Does not record a notice of waiver as provided in NRS 108.2405; and (b) Does not personally or through an agent or representative, directly or indirectly, contract for or cause a work of improvement, or any portion thereof, to be constructed, altered or repaired upon the property or an improvement of the owner.

The term does not include an owner who is a lessor if the lessee fails to satisfy the requirements set forth in NRS 108.2403 and 108.2407.1. A prime contractor: (a) Upon a notice of lien, may recover the lienable amount as may be due, plus all amounts that may be awarded by the court pursuant to NRS 108.237; and (b) Upon receipt of the amount described in paragraph (a), shall pay all liens for the work, equipment or materials which were furnished or to be furnished as provided in NRS 108.221 to 108.246, inclusive.2.

• In all cases where a prime contractor has been paid for the work, materials or equipment which are the subject of a notice of lien recorded under NRS 108.221 to 108.246, inclusive, the prime contractor shall defend the owner in any action brought thereupon at the prime contractor’s own expense.3.
• Except as otherwise provided in this subsection, if a lien claimant records a notice of lien for the work, equipment or materials furnished or to be furnished to the prime contractor, the owner may withhold from the prime contractor the amount of money for which the lien claimant’s notice of lien is recorded.

If the lien claimant’s notice of lien resulted from the owner’s failure to pay the prime contractor for the lien claimant’s work, materials or equipment, the owner shall not withhold the amount set forth in the notice of lien from the prime contractor if the prime contractor or lien claimant tenders a release of the lien claimant’s lien to the owner.

1. 1. In every case in which different liens are asserted against any property, the court, in the judgment, must declare the rank of each lien claimant or class of lien claimants in the following order:
2. (a) First: All labor whether performed at the instance or direction of the owner, the subcontractor or the prime contractor.
3. (b) Second: Material suppliers and lessors of equipment.
4. (c) Third: All other lien claimants who have performed their work, in whole or in part, under contract with the prime contractor or any subcontractor.
5. (d) Fourth: All other lien claimants.

2. The proceeds of the sale of the property must be applied to each lien claimant or class of lien claimants in the order of its rank.1. The court shall award to a prevailing lien claimant, whether on its lien or on a surety bond, the lienable amount found due to the lien claimant by the court and the cost of preparing and recording the notice of lien, including, without limitation, attorney’s fees, if any, and interest.

The court shall also award to the prevailing lien claimant, whether on its lien or on a surety bond, the costs of the proceedings, including, without limitation, reasonable attorney’s fees, the costs for representation of the lien claimant in the proceedings, and any other amounts as the court may find to be justly due and owing to the lien claimant.2.

The court shall calculate interest for purposes of subsection 1 based upon: (a) The rate of interest agreed upon in the lien claimant’s contract; or (b) If a rate of interest is not provided in the lien claimant’s contract, interest at a rate equal to the prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions, on January 1 or July 1, as the case may be, immediately preceding the date of judgment, plus 4 percent, on the amount of the lien found payable.

• The rate of interest must be adjusted accordingly on each January 1 and July 1 thereafter until the amount of the lien is paid.
• Interest is payable from the date on which the payment is found to have been due, as determined by the court.3.
• If the lien claim is not upheld, the court may award costs and reasonable attorney’s fees to the owner or other person defending against the lien claim if the court finds that the notice of lien was pursued by the lien claimant without a reasonable basis in law or fact.

The provisions of NRS 108.221 to 108.246, inclusive, must not be construed to impair or affect the right of a lien claimant to whom any debt may be due for work, materials or equipment furnished to maintain a civil action to recover that debt against the person liable therefor or to submit any controversy arising under a contract to arbitration to recover that amount.1.

A notice of lien may be enforced by an action in any court of competent jurisdiction that is located within the county where the property upon which the work of improvement is located, on setting out in the complaint the particulars of the demand, with a description of the property to be charged with the lien.2.

At the time of filing the complaint and issuing the summons, the lien claimant shall: (a) File a notice of pendency of the action in the manner provided in NRS 14.010; and (b) Cause a notice of foreclosure to be published at least once a week for 3 successive weeks, in one newspaper published in the county, and if there is no newspaper published in the county, then in such mode as the court may determine, notifying all persons holding or claiming a notice of lien pursuant to the provisions of NRS 108.221 to 108.246, inclusive, on the property to file with the clerk and serve on the lien claimant and also on the defendant, if the defendant is within the State or is represented by counsel, written statements of the facts constituting their liens, together with the dates and amounts thereof.3.

All persons holding or claiming a notice of lien may join a lien claimant’s action by filing a statement of facts within a reasonable time after publication of the notice of foreclosure or receiving notice of the foreclosure, whichever occurs later. Any number of persons claiming liens may join in the same action if they timely file a statement of facts in the lien claimant’s action.

The lien claimant and other parties adversely interested must be allowed 20 days to answer the statements.4. If it appears from the records of the county recorder that there are other notices of lien recorded against the same property at the time of the commencement of the action, the lien claimant shall, in addition to and after the initial publication of the notice of foreclosure as provided in paragraph (b) of subsection 2, mail to those other lien claimants, by registered or certified mail, or deliver in person a copy of the notice of foreclosure as published.5.

1. At the time of any change in the venue of the action, the lien claimant shall file a notice of pendency of the action, in the manner provided in NRS 14.010, and include in the notice the court and county to which the action is changed.6.
2. When separate actions are commenced by lien claimants to foreclose on their respective notices of lien, the court may consolidate all the actions.

The consolidation does not affect or change the priority of lien claims.7. The court shall enter judgment according to the right of the parties, and shall, by decree, proceed to hear and determine the claims in a summary way, or may, if it be the district court, refer the claims to a special master to ascertain and report upon the liens and the amount justly due thereon.

• 8. Upon petition by a lien claimant for a preferential trial setting:
• (a) The court shall give preference in setting a date for the trial of an action brought pursuant to this section; and
• (b) If a lien action is designated as complex by the court, the court may take into account the rights and claims of all lien claimants in setting a date for the preferential trial.
• 9. If the lienable amount of a lien claimant’s lien is the subject of binding arbitration:

(a) The court may, at the request of a party to the arbitration, stay the lien claimant’s action to foreclose the lien pending the outcome of the binding arbitration. If the foreclosure on the lien involves the rights of other lien claimants or persons whose claims are not the subject of the binding arbitration, the court may stay the lien claimant’s foreclosure proceeding only upon terms which are just and which afford the lien claimant a fair opportunity to protect his or her lien rights and priorities with respect to other lien claimants and persons.

B) Upon the granting of an award by the arbitrator, any party to the arbitration may seek an order from the court in the action to foreclose on the lien confirming or adopting the award and determining the lienable amount of the lien claimant’s lien in accordance with the order, if any. Upon determining the lienable amount, the court shall enter a judgment or decree for the lienable amount, plus all amounts that may be awarded by the court to the lien claimant pursuant to NRS 108.237, and the court may include as part of the lien all costs and attorney’s fees awarded to the lien claimant by the arbitrator and all costs and attorney’s fees incurred by the lien claimant pertaining to any application or motion to confirm, adopt, modify or correct the award of the arbitrator.

A judgment or decree entered by the court pursuant to this subsection may be enforced against the property as provided in subsections 10, 11 and 12.10. On ascertaining the whole amount of the liens with which the property is justly chargeable, as provided in NRS 108.221 to 108.246, inclusive, the court shall cause the property to be sold in satisfaction of all liens and the costs of sale, including all amounts awarded to all lien claimants pursuant to NRS 108.237, and any party in whose favor judgment may be rendered may cause the property to be sold within the time and in the manner provided for sales on execution, issued out of any district court, for the sale of real property.11.

If the proceeds of sale, after payment of the costs of sale, are not sufficient to satisfy all liens to be included in the decree of sale, including all amounts awarded to all lien claimants pursuant to NRS 108.237, the proceeds must be apportioned according to the right of the various lien claimants.

If the proceeds of the sale amount to more than the sum of all liens and the cost of sale, the remainder must be paid over to the owner of the property.12. Each party whose claim is not satisfied in the manner provided in this section is entitled to personal judgment for the residue against the party legally liable for it if that person has been personally summoned or has appeared in the action.1.

1. (a) Record a notice of posted security with the county recorder of the county where the property is located upon which the improvement is or will be constructed, altered or repaired; and
2. (b) Either:
3. (1) Establish a construction disbursement account and:
4. (I) Fund the account in an amount equal to the total cost of the work of improvement, but in no event less than the total amount of the prime contract;
5. (II) Obtain the services of a construction control to administer the construction disbursement account; and
6. (III) Notify each person who gives the lessee a notice of right to lien of the establishment of the construction disbursement account as provided in paragraph (f) of subsection 2; or

(2) Record a surety bond for the prime contract that meets the requirements of subsection 2 of NRS 108.2415 and notify each person who gives the lessee a notice of right to lien of the recording of the surety bond as provided in paragraph (f) of subsection 2.

• 2. The notice of posted security required pursuant to subsection 1 must:
• (a) Identify the name and address of the lessee;
• (b) Identify the location of the improvement and the address, legal description and assessor’s parcel number of the property upon which the improvement is or will be constructed, altered or repaired;
• (c) Describe the nature of the lessee’s interest in:
• (1) The property upon which the improvement is or will be constructed, altered or repaired; and
• (2) The improvement on such property;
• (d) If the lessee establishes a construction disbursement account pursuant to subsection 1, include:
• (1) The name and address of the construction control;
• (2) The date that the lessee obtained the services of the construction control and the total amount of funds in the construction disbursement account; and
• (3) The number of the construction disbursement account, if any;
• (e) If the lessee records a surety bond pursuant to subsection 1, include:
• (1) The name and address of the surety;
• (2) The surety bond number;
• (3) The date that the surety bond was recorded in the office of the county recorder of the county where the property is located upon which the improvement is or will be constructed, altered or repaired;
• (4) The book and the instrument or document number of the recorded surety bond; and
• (5) A copy of the recorded surety bond with the notice of posted security; and
• (f) Be served upon each person who gives a notice of right to lien within 10 days after receipt of the notice of right to lien, in one of the following ways:
• (1) By personally delivering a copy of the notice of posted security to the person who gives a notice of right to lien at the address identified in the notice of right to lien; or
• (2) By mailing a copy of the notice of posted security by certified mail, return receipt requested, to the person who gives a notice of right to lien at the address identified in the notice of right to lien.

3. If a lessee fails to satisfy the requirements of subsection 1 of this section or subsection 2 of NRS 108.2407, the prime contractor who has furnished or will furnish materials or equipment for the work of improvement may stop work. If the lessee:

1. (a) Satisfies the requirements of subsection 1 of this section or subsection 2 of NRS 108.2407 within 25 days after any work stoppage, the prime contractor who stopped work shall resume work and the prime contractor and the prime contractor’s lower-tiered subcontractors and suppliers are entitled to compensation for any reasonable costs and expenses that any of them have incurred because of the delay and remobilization; or
2. (b) Does not satisfy the requirements of subsection 1 of this section or subsection 2 of NRS 108.2407 within 25 days after the work stoppage, the prime contractor who stopped work may terminate the contract relating to the work of improvement and the prime contractor and the prime contractor’s lower-tiered subcontractors and suppliers are entitled to recover:
3. (1) The cost of all work, materials and equipment, including any overhead the prime contractor and the lower-tiered subcontractors and suppliers incurred and profit the prime contractor and the lower-tiered subcontractors and suppliers earned through the date of termination;
4. (2) The balance of the profit the prime contractor and the lower-tiered subcontractors and suppliers would have earned if the contract had not been terminated;
5. (3) Any interest, costs and attorney’s fees that the prime contractor and the lower-tiered subcontractors and suppliers are entitled to pursuant to NRS 108.237; and
6. (4) Any other amount awarded by a court or other trier of fact.

4. The rights and remedies provided pursuant to this section are in addition to any other rights and remedies that may exist at law or in equity, including, without limitation, the rights and remedies provided pursuant to NRS 624.606 to 624.630, inclusive.1.

The provisions of NRS 108.2403 and 108.2407 do not apply: (a) In a county with a population of 700,000 or more with respect to a ground lessee who enters into a ground lease for real property which is designated for use or development by the county for commercial purposes which are compatible with the operation of the international airport for the county.

(b) If all owners of the property, individually or collectively, record a written notice of waiver of the owners’ rights set forth in NRS 108.234 with the county recorder of the county where the property is located before the commencement of construction of the work of improvement.

• 3. As used in this section:
• (a) “Ground lease” means a written agreement:
• (1) To lease real property which, on the date on which the agreement is signed, does not include any existing buildings or improvements that may be occupied on the land; and
• (2) That is entered into for a period of not less than 10 years, excluding any options to renew that may be included in any such lease.
• (b) “Ground lessee” means a person who enters into a ground lease as a lessee with the county as record owner of the real property as the lessor.

1. If a construction disbursement account is established and funded pursuant to subsection 2 of this section or subsection 1 of NRS 108.2403, each lien claimant has a lien upon the funds in the account for an amount equal to the lienable amount owed.

1. 2. Upon the disbursement of any funds from the construction disbursement account for a given pay period:
2. (a) The lessee shall deposit into the account such additional funds as may be necessary to pay for the completion of the work of improvement, including, without limitation, the costs attributable to additional and changed work, material or equipment;
3. (b) The construction control described in subsection 1 of NRS 108.2403 shall certify in writing the amount necessary to pay for the completion of the work of improvement; and
4. (c) If the amount necessary to pay for the completion of the work of improvement exceeds the amount remaining in the construction disbursement account:
5. (1) The construction control shall give written notice of the deficiency by certified mail, return receipt requested, to the prime contractor and each person who has given the construction control a notice of right to lien; and

(2) The provisions of subsection 3 of NRS 108.2403 shall be deemed to apply.3. The construction control shall disburse money to lien claimants from the construction disbursement account for the lienable amount owed such lien claimants.

• 4. A lien claimant may notify the construction control of a claim of lien by:
• (a) Recording a notice of lien pursuant to NRS 108.226; or
• (b) Personally delivering or mailing by certified mail, return receipt requested, a written notice of a claim of lien to the construction control within 90 days after the completion of the work of improvement.

5. Except as otherwise provided in subsection 6, the construction control shall pay a legitimate claim of lien upon receipt of the written notice described in subsection 4 from the funds available in the construction disbursement account.

1. 6. The construction control may bring an action for interpleader in the district court for the county where the property or some part thereof is located if:
2. (a) The construction control reasonably believes that all or a portion of a claim of lien is not legitimate; or
3. (b) The construction disbursement account does not have sufficient funds to pay all claims of liens for which the construction control has received notice.

7. If the construction control brings an action for interpleader pursuant to paragraph (a) of subsection 6, the construction control shall pay to the lien claimant any portion of the claim of lien that the construction control reasonably believes is legitimate.

• 8. If an action for interpleader is brought pursuant to subsection 6, the construction control shall:
• (a) Deposit with the court an amount equal to 1.5 times the amount of the lien claims to the extent that there are funds available in the construction disbursement account;
• (b) Provide notice of the action for interpleader by certified mail, return receipt requested, to each person:
• (1) Who gives the construction control a notice of right to lien;
• (2) Who serves the construction control with a claim of lien;
• (3) Who has performed work or furnished materials or equipment for the work of improvement; or
• (4) Of whom the construction control is aware may perform work or furnish materials or equipment for the work of improvement; and
• (c) Publish a notice of the action for interpleader once each week, for 3 successive weeks, in a newspaper of general circulation in the county in which the work of improvement is located.

9. A construction control who brings an action for interpleader pursuant to subsection 6 is entitled to be reimbursed from the construction disbursement account for the reasonable costs that the construction control incurred in bringing such action.10.

If a construction control for a construction disbursement account established by a lessee does not provide a proper certification as required pursuant to paragraph (b) of subsection 2 or does not comply with any other requirement of this section, the construction control and its bond are liable for any resulting damages to any lien claimants.

A lien claimant’s lien rights or notice of lien may be released upon the posting of a surety bond in the manner provided in NRS 108.2415 to 108.2425, inclusive.1. To obtain the release of a lien for which notice of lien has been recorded against the property, the principal and a surety must execute a surety bond in an amount equal to 1.5 times the lienable amount in the notice of lien, which must be in the following form: (Assessor’s Parcel Numbers) (Title of court and cause, if action has been commenced) WHEREAS, (name of principal), located at,

Address of principal), desires to give a bond for releasing the following described property owned by, (name of owners) from that certain notice of lien in the sum of $. recorded, (month), (day),, (year), in the office of the recorder in, (name of county where the property is located): (Legal Description) NOW, THEREFORE, the undersigned principal and surety do hereby obligate themselves to the lien claimant named in the notice of lien,,, (name of lien claimant) under the conditions prescribed by NRS 108.2413 to 108.2425, inclusive, in the sum of $.

(1 1/2 x lienable amount), from which sum they will pay the lien claimant that amount as a court of competent jurisdiction may adjudge to have been secured by the lien, including the total amount awarded pursuant to NRS 108.237, but the liability of the surety may not exceed the penal sum of the surety bond.

1. (Signature of Principal)
2. (Surety Corporation)
3. By.
4. (Its Attorney in Fact)
5. State of Nevada }
6. } ss.
7. County of }

On, (month), (day),, (year), before me, the undersigned, a notary public of this County and State, personally appeared who acknowledged that he or she executed the foregoing instrument as principal for the purposes therein mentioned and also personally appeared,

• (Notary Public in and for
• the County and State)

2. To obtain the release of all prospective and existing lien rights of lien claimants related to a work of improvement, the principal and a surety must execute and cause to be recorded a surety bond in an amount equal to 1.5 times the amount of the prime contract, which must be in the following form: (Assessor’s Parcel Numbers) (Title of court and cause, if action has been commenced) WHEREAS, (name of principal), located at,

1. (Parties to the Prime Contract)
2. (Amount of the Prime Contract)
3. (Date of the Prime Contract)
4. (Summary of Terms of the Prime Contract)
5. WHEREAS, the property that is the subject of the surety bond is described as follows:
6. (Legal Description)

NOW, THEREFORE, the undersigned principal and surety do hereby obligate themselves in the sum of $. (1 1/2 x amount of prime contract) to all prospective and existing lien claimants who have provided or hereafter provide materials, equipment or work under the prime contract, from which sum the principal and surety will pay the lien claimants the lienable amount that a court of competent jurisdiction may determine is owed to each lien claimant, and such additional amounts as may be awarded pursuant to NRS 108.237, but the liability of the surety may not exceed the penal sum of the surety bond.

• (Signature of Principal)
• (Surety Corporation)
• By.
• (Its Attorney in Fact)
• State of Nevada }
• }ss.

County of. } On, (month), (day),, (year), before me, the undersigned, a notary public of this County and State, personally appeared who acknowledged that he or she executed the foregoing instrument as principal for the purposes therein mentioned and also personally appeared,

2. (Notary Public in and for
3. the County and State)

3. The principal must record the surety bond in the office of the county recorder in the county in which the property upon which the improvement is located, either before or after the commencement of an action to enforce the lien. A certified copy of the recorded surety bond shall be deemed an original for purposes of this section.

• 4. Upon the recording of the surety bond, the principal must serve a file-stamped copy of the recorded surety bond in the following manner:
• (a) If a lien claimant has appeared in an action that is pending to enforce the notice of lien, service must be made by certified or registered mail, return receipt requested, upon the lien claimant at the address set forth in the lien and the lien claimant’s counsel of record at his or her place of business;
• (b) If a notice of lien is recorded at the time the surety bond is recorded and no action is pending to enforce the notice of lien, personal service must be made upon each lien claimant pursuant to Rule 4 of the Nevada Rules of Civil Procedure; or

(c) If no notice of lien is recorded at the time the surety bond is recorded, service must be made by personal service or certified mail, return receipt requested, upon each lien claimant and prospective lien claimant that has provided or thereafter provides the owner or lessee with a notice of a right to lien.

Such service must be within 10 days after the recording of the surety bond, or the service of notice of the right to lien upon the owner by a lien claimant, whichever is later.5. Failure to serve the surety bond as provided in subsection 4 does not affect the validity of the surety bond, but the statute of limitations on any action on the surety bond, including a motion excepting to the sufficiency of the surety pursuant to NRS 108.2425, is tolled until notice is given.6.

Subject to the provisions of NRS 108.2425, the recording and service of the surety bond pursuant to: (a) Subsection 1 releases the property described in the surety bond from the lien and the surety bond shall be deemed to replace the property as security for the lien.

1. 2. If an action by a lien claimant to foreclose upon a lien has been brought:
2. (a) Before the surety bond is recorded:
3. (1) The lien claimant may amend the complaint to state a claim against the principal and the surety on the surety bond; or
4. (2) The liability of the principal and surety on the surety bond may be enforced pursuant to NRS 108.2423; or
5. (b) After the surety bond is recorded:

(1) If the surety bond is recorded pursuant to subsection 1 of NRS 108.2415, the lien claimant may bring an action against the principal and the surety not later than 9 months after the date that the lien claimant was served with notice of the recording of the surety bond.

• (2) If the surety bond is recorded pursuant to subsection 2 of NRS 108.2415, the lien claimant may bring an action against the principal and the surety within the later of:
• (I) Nine months after the date that the lien claimant was served with notice of the recording of the surety bond; or
• (II) Nine months after the date of the completion of the work of improvement.

3. At any time after the filing of a joint case conference report pursuant to Rule 16.1 of the Nevada Rules of Civil Procedure or, if the case is designated by the court as complex litigation, after the approval of the initial case management order by the court, each lien claimant in the action may serve upon the adverse party a “demand for preferential trial setting” and file the demand with the clerk of the court.

Upon filing, the clerk of the court shall, before the Friday after the demand is filed, vacate a case or cases in a department of the court and set the lien claimant’s case for hearing, on a day or days certain, to be heard within 60 days after the filing of the “demand for preferential trial setting.” Only one such preferential trial setting need be given by the court, unless the hearing date is vacated without stipulation of counsel for the lien claimant in writing.

If the hearing date is vacated without that stipulation, upon service and filing, a new preferential trial setting must be given.

1. 4. A lien claimant shall, at the time of making a demand for a preferential trial setting, and each other party to the preferential trial shall, within 20 days after the lien claimant’s service of the demand, serve upon all parties to the preferential trial the following documents and information:
2. (a) A copy of all documents that the party intends to rely upon at the time of the trial;
3. (b) A list of witnesses whom the party intends to call at the time of the trial, which must include for each witness:
4. (1) The name of the witness;
5. (2) The company for whom the witness works and title of the witness; and
6. (3) A brief summary of the expected testimony of the witness;
7. (c) Any supplemental discovery responses as required by the Nevada Rules of Civil Procedure;
8. (d) The identity of each person whom the party expects to call as an expert witness at the trial, together with a statement of the substance of the facts and opinions to which the expert witness is expected to testify and a summary of the grounds for each opinion;
9. (e) Any expert reports not previously disclosed; and
10. (f) A detailed summary of all claims, offsets and defenses that the party intends to rely upon at the trial.

5. Within 20 days after receipt of an opposing party’s identification of an expert witness, a party who desires to call a rebuttal expert witness at the trial must identify each person whom the party expects to call as a rebuttal expert witness, and must provide a statement of the substance of the facts and opinions to which the rebuttal expert witness is expected to testify and a summary of the grounds for each opinion.6.

A prevailing lien claimant on a claim against a surety bond must be awarded the lienable amount plus the total amount that may be awarded by the court pursuant to NRS 108.237, so long as the liability of the surety is limited to the penal sum of the surety bond. Such a judgment is immediately enforceable and may be appealed regardless of whether any other claims asserted or consolidated actions or suits have been resolved by a final judgment.1.

By entering into a surety bond given pursuant to NRS 108.2415, the principal and surety submit themselves to the jurisdiction of the court in which an action or suit is pending on a notice of lien on the property described in the surety bond, and the principal and surety irrevocably appoint the clerk of that court as their agent upon whom any papers affecting the liability on the surety bond may be served.

• 2. The motion described in subsection 1 must not be instituted until 30 days after:
• (a) If a notice of appeal from the judgment is not filed, the giving of notice of entry of judgment in the action against the lien claimant’s debtor or the giving of notice of entry of judgment in an action against the principal or the lien claimant’s debtor, as the case may be; or
• (b) If an appeal has been taken from the judgment, the filing of the remittitur from the appellate court of competent jurisdiction pursuant to the rules fixed by the Supreme Court pursuant to Section 4 of Article 6 of the Nevada Constitution.

1. Any lien may be assigned in the same manner as any other chose in action after it has been perfected by recording.2. An assignment of a lien before recording will not be effective until written notice of the assignment has been given to the owner by the assignee.

The notice will be sufficient if delivered in person or mailed by certified mail to the owner. After such notice, the assignee may perfect the lien in the assignee’s own name.3. One or more lien claimants of any class may assign their notices of lien by written assignment, signed by each assignor, to any other person or lien claimant of any class, and the assignee may commence and prosecute the action upon all of the notices of lien in the assignee’s own name or in the name of the original lien claimant.4.

In the event that a claim for which a lien may be filed is assigned before it is perfected, such assignment does not discharge or defeat the right to perfect the lien, if the lien is reassigned to the lien claimant, and thereafter the lien is timely perfected.1.

Except as otherwise provided in subsection 2, a notice of lien upon the property provided for in NRS 108.221 to 108.246, inclusive, may be discharged by an entry on the margin of the record thereof, signed by the lien claimant or the lien claimant’s personal representative or assignee in the presence of the recorder or the recorder’s deputy, acknowledging the satisfaction of or value received for the notice of lien and the debt secured thereby.

The recorder or the deputy shall subscribe the entry as witness. The entry has the same effect as a discharge or release of the notice of lien acknowledged and recorded as provided by law. The recorder shall properly index each marginal discharge.2. If the notice of lien has been recorded by a microfilm or other photographic process, a marginal release may not be used and an acknowledged discharge or release of the notice of lien must be recorded.3.

If the recorder or the recorder’s deputy is presented with a certificate executed by the lien claimant or the lien claimant’s personal representative or assignee, specifying that the notice of lien has been paid or otherwise satisfied or discharged, the recorder or the deputy shall discharge the notice of lien upon the record.1.

As soon as practicable, but not later than 10 days after a notice of lien upon the property pursuant to NRS 108.221 to 108.246, inclusive, is fully satisfied or discharged, the lien claimant shall cause to be recorded a discharge or release of the notice of lien in substantially the following form:

1. Assessor’s Parcel Numbers
2. DISCHARGE OR RELEASE OF NOTICE OF LIEN
3. NOTICE IS HEREBY GIVEN THAT:

The undersigned did, on the, day of the month of, of the year,, record in Book, as Document No., in the office of the county recorder of, County, Nevada, its Notice of Lien, or has otherwise given notice of his or her intention to hold a lien upon the following described property or improvements, owned or purportedly owned by, located in the County of, State of Nevada, to wit:

• (Legal Description or Address of the Property or Improvements)
• NOW, THEREFORE, for valuable consideration the undersigned does release, satisfy and discharge this notice of lien on the property or improvements described above by reason of this Notice of Lien.
• (Signature of Lien Claimant)

2. If the lien claimant fails to comply with the provisions of subsection 1, the lien claimant is liable in a civil action to the owner of the property, his or her heirs or assigns for any actual damages caused by the lien claimant’s failure to comply with those provisions or $100, whichever is greater, and for a reasonable attorney’s fee and the costs of bringing the action.

A lien claimant or assignee of a lien claimant or claimants may not file a complaint for foreclosure of a notice of lien or the assigned notice of lien or notices of lien until 30 days have expired immediately following the recording of a notice of lien or following the recording of the assigned notice of lien or the last of the assigned notices of liens.

This provision does not apply to or prohibit the filing of any statement of fact constituting a lien or statements of fact constituting a lien: 1. In an action already filed for foreclosure of a notice of lien; or 2. In order to comply with the provisions of NRS 108.239.1.

1. NOTICE OF RIGHT TO LIEN
2. To:
3. (Owner’s name and address)
4. The undersigned notifies you that he or she has supplied materials or equipment or performed work or services as follows:
5. (General description of materials, equipment, work or services)

for improvement of property identified as (property description or street address) under contract with (general contractor or subcontractor). This is not a notice that the undersigned has not been or does not expect to be paid, but a notice required by law that the undersigned may, at a future date, record a notice of lien as provided by law against the property if the undersigned is not paid.

1. Claimant) A subcontractor or equipment or material supplier who gives such a notice must also deliver in person or send by certified mail a copy of the notice to the prime contractor for information only.
2. The failure by a subcontractor to deliver the notice to the prime contractor is a ground for disciplinary proceedings against the subcontractor under chapter 624 of NRS but does not invalidate the notice to the owner.2.

Such a notice does not constitute a lien or give actual or constructive notice of a lien for any purpose.3. No lien for materials or equipment furnished or for work or services performed, except labor, may be perfected or enforced pursuant to NRS 108.221 to 108.246, inclusive, unless the notice has been given.4.

1. The notice need not be verified, sworn to or acknowledged.5.
2. A prime contractor or other person who contracts directly with an owner or sells materials directly to an owner is not required to give notice pursuant to this section.6.
3. A lien claimant who is required by this section to give a notice of right to lien to an owner and who gives such a notice has a right to lien for materials or equipment furnished or for work or services performed in the 31 days before the date the notice of right to lien is given and for the materials or equipment furnished or for work or services performed anytime thereafter until the completion of the work of improvement.1.

Except as otherwise provided in NRS 108.221 to 108.246, inclusive, a person may not waive or modify a right, obligation or liability set forth in the provisions of NRS 108.221 to 108.246, inclusive.2. A condition, stipulation or provision in a contract or other agreement for the improvement of property or for the construction, alteration or repair of a work of improvement in this State that attempts to do any of the following is contrary to public policy and is void and unenforceable: (a) Require a lien claimant to waive rights provided by law to lien claimants or to limit the rights provided to lien claimants, other than as expressly provided in NRS 108.221 to 108.246, inclusive; (b) Relieve a person of an obligation or liability imposed by the provisions of NRS 108.221 to 108.246, inclusive;

• (c) Make the contract or other agreement subject to the laws of a state other than this State;
• (d) Require any litigation, arbitration or other process for dispute resolution on disputes arising out of the contract or other agreement to occur in a state other than this State; or
• (e) Require a prime contractor or subcontractor to waive, release or extinguish a claim or right that the prime contractor or subcontractor may otherwise possess or acquire for delay, acceleration, disruption or impact damages or an extension of time for delays incurred, for any delay, acceleration, disruption or impact event which was unreasonable under the circumstances, not within the contemplation of the parties at the time the contract was entered into, or for which the prime contractor or subcontractor is not responsible.

1. Each prime contractor shall, before execution of a contract for construction, inform the owner with whom the prime contractor intends to contract of the provisions of NRS 108.245 in substantially the following form: To: (Owner’s name and address) The provisions of NRS 108.245, a part of the mechanics’ and materialmen’s lien law of the State of Nevada, require, for your information and protection from hidden liens, that each person or other legal entity who supplies materials to or performs work on a construction project, other than one who performs only labor, deliver to the owner a notice of the materials and equipment supplied or the work performed.

1. You may receive these notices in connection with the construction project which you propose to undertake.2.
2. Each prime contractor shall deliver a copy of the information required by subsection 1 to each subcontractor who participates in the construction project.3.
3. The failure of a prime contractor to inform pursuant to this section owners and subcontractors with whom the prime contractor contracts is a ground for disciplinary proceedings under chapter 624 of NRS.

: Nevada Mechanics Lien FAQs