What You Need To Do Immediately After Filing A Construction Lien
So, you filed your construction lien on time. Whew! Now what?
If you’re a subscriber to our blog, you know we frequently post about the technical requirements and strict deadlines that lead up to the filing of a construction lien. We don’t, however, frequently discuss the technical requirements and strict deadlines that follow a lien’s filing. There are a few, and as usual, these requirements vary state-by-state.
Generally speaking, however, you have to keep two things in mind immediately after filing a construction lien.
First, you may need to send notice of filed lien to the property owner and/or contractors “up the chain.” In some states (like in Texas) a lien is actually unenforceable unless a copy of the filed lien is delivered to the property owner within 5 days of its filing. That’s a serious penalty, and a pretty immediate deadline. Other states have similar penalties (in Oregon, for example, you cannot collect attorneys fees from the other party in foreclosing on lien that was not delivered to the property owner after filing).
Now, here is how Express Lien helps.
Any liens ordered from us (in any state) are delivered to the property owner and all other interested parties (those named on the lien) immediately after filing. Notice of the filing is delivered certified mail, and a record of the mailing is maintained in your online account, available for you to review or download at anytime. You simply place your order and forget about it – we do all the rest.
Second, liens expired if they are not “foreclosed upon” or “enforced” within a certain period of time. In some states, liens must be enforced within just 90 days (California), while other states can provide up to 2 years (Texas). Failure to file a lawsuit enforcing / foreclosing the lien will result in the lien expiring.
How does Express Lien help with this?
Well, once you put the “Lien’s Filing Date” into our system, the system will calculate your lien’s expiration date. If you order the lien from Express Lien, we’ll put the date in the system for you. We don’t actually foreclose or enforce the lien for you (you’ll need an attorney for that), we do give you a heads-up when the deadline is approaching.
Avvo Legal Guides on Oregon and Louisiana Liens Published
Want a step-by-step guide on how to file construction or mechanic liens in Louisiana or Oregon? Your call has been answered this weekend with the publication of Avvo Legal Guides on both these subjects, which you can view here:
How to File a Construction Lien in Oregon
How to File a Construction Lien in Louisiana
These two legal guides offer plain english explanations on how to prepare and file a construction lien in either of these states. After reading the guide, you can visit Express Lien’s free Lien Punchlist & Forms center, where you can download more information about on the subject, and even download free PDF-fillable lien forms.
Want to dot your i’s and cross your t’s, and rest easy knowing your document will get filed? Consider using the Express Lien service to prepare your lien, file and serve it, and then store it online for your records.
The two above-listed legal guides were written and published by Scott Wolfe Jr., who is the founder of Express Lien and the company’s President. Separate from Express Lien, Scott is a practicing construction attorney in Washington, Oregon and Louisiana, with his construction practice the Wolfe Law Group.
He previously published a similar legal article on Avvo.com about filing construction liens in Washington, which you can read here.
An Owner’s Perspective on Liens
We frequently post about construction liens from a contractor’s perspective – who are clearly interested in figuring out ways to qualify for the filing of a lien.
What we rarely comment upon is an owner’s perspective, who are concerned with the opposite: figuring out ways to condemn a lien as improperly filed.
It’s important for those who usually file mechanic’s liens to step back and consider the opposing viewpoint. There is some value in understanding that upon receipt of a lien, an owner’s will likely have the instinct of wanting to fight it as improper or unfair.
When lien laws are drafted, they are drafted with protection for property owners in mind. And when contractor boards and other regulatory agencies commit time to lien laws, they are usually focusing on educating the public (i.e. property owners) on what they can do to prevent liens.
A December 2008 article from the Daily Journal of Commerce in Portland, Oregon, stands as an example of this. In the article titled “Five Questions to Ask About Liens,” the author goes through five questions owners should ask when faced with mechanic’s liens to determine their rights on proceeding forward.
This is not a rare example. To the contrary, regulatory agencies across the nation who regulate contractors focus a great deal of effort on helping owners understand and overcome improperly filed construction liens. See the page for Department of Labor & Industries in Washington, or the Contractors State Licensing Board in California.
If your company does wind up filing an improper mechanic’s lien and its disputed by the property owner, a loss in court could require your company to pay penalties, attorneys fees and more.
The point? It’s important to understand the lien laws in your jurisdiction, and avoid making common errors and mistakes.
Andrea Goldman, a construction attorney in Massachusetts, publishes a great blog about this very issue titled: Home Contractor v. Homeowner. She frequently posts on issues that surface in home construction between the property owner and contract that results in litigation or arbitration.
With all of the work across the nation from regulatory agencies attempting to stifle improperly filed mechanics liens, Andrea notes in her blog that mechanic’s liens are so powerful of a collection tool for contractors that even an improperly filed lien can yield non-payment.
In her post the “Strength of Mechanic’s Liens,” Andrea states as follows:
Even if the lien is not done properly, one still has to file an action in court to dissolve it, which requires paying legal fees that are frequently not recoverable.
And regardless of your position on the subject (as a property owner, contractor or regulatory board), and regardless of how right or wrong your position may be, Andrea’s point is clear. Mechanic’s liens are powerful instruments, and even when they are filed with technical defects, they cause parties to consider the debtor’s claim and contemplate a resolution.
Now Filing in Oregon
ExpressLien is pleased to announce that it is growing its service, and that as of Monday, April 28, 2008, its online lien filing service will be available for use in Oregon.
Launching the service in Oregon is part of the company’s long-term growth strategy. The service hopes to soon expand into the neighboring states of Nevada and Utah.
Within just five to ten minutes, a contractor or material supplier can now lien a non-paying project without the hassles of hiring an attorney or scouring the internet for forms and procedures. Liens are prepared to the standards of the filers jurisdiction, are delivered to interested parties as per state law, and are stored on ExpressLien’s servers for ease of record-keeping.
*Express Lien, L.L.C. is a Washington company. Express Lien is not a law firm or lawyers, and does not give legal advice. If you have questions about lien laws, you should consult with an attorney.
