The filing of a lien is required for a general contractor, subcontractor to protect their Lien rights so they may be compensated for the work that they had performed. Subcontractors ,contractors need to understand the laws in there states that they are working in. When working with construction liens, the timing and content of the lien is very important. If there are missing dates, names of property owners or even a legal description these are just a few , may cause a defect in your lien. Please check with your attorney in your state.
The Oregon court of appeals recently confirmed that persons that accept a mortgage or trust deed as a security for a construction lien debt may forfeit their right to a lien claim.
Also note that the Oregon legislature repealed its “stay of foreclosure” law that allowed property owners to stay a construction lien law foreclosure action by filing a complaint with the Construction Contractors Board. The repeal is only a temporary effect and will resume in 2017. Please check with your attorney.
Now that the January 2011 amendments to the New Jersey Construction Lien Law have been in effect for over two years, the New Jersey chapter of LienLaw Online has been updated to reflect the latest case authority interpreting these amendments. These cases, many of which are unreported, address the following issues:
- Construction Lien Law arbitration;
- Liens against leasehold interests;
- Stay of lien foreclosure action pending arbitration;
- Obligation of materials supplier to lien the proper project by a contractor with multiple, open accounts;
- Imposition of equitable liens when construction lien claim may not be asserted; and
- Explanation of monetary relief available to aggrieved party where lien willfully overstated
Note that there has been a change to Virginia’s lien law. Lien claimants that provided labor for the construction of an improvement must hold a valid license or certificate from the Virginia Board of Contractors in the proper class of license for the value of the work performed in order to have a valid lien. The claimant must have the license when the work is performed. It will not be sufficient to obtain a license after the work is performed, but before the lien is filed. The forms for mechanics’ liens by general contractor, subcontractor and sub-subcontractor that can be linked from the Virginia Chapter have been modified to add lines necessary to establish the existence of the claimant’s contractor’s license or certificate.
What is a Construction Lien?
Anyone who constructs improvements on property, supplies materials, rents equipment, or provides services for improvements has a right to collect payment from the property if they are not paid. If the general contractor is not paid or does not pay the subcontractors, laborers, material suppliers, or equipment rental companies, those persons may claim a lien against the property.