Construction Liens in Ohio

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Overview

Sources

Ohio Rev. Code Ann. §§ 1311.01 et seq.

Authorized Claimants

Every person who performs work or labor upon or furnishes material in furtherance of any improvement undertaken by virtue of a contract, express or implied, with the owner… has a lien to secure the payment therefor upon the improvement and all interests that the owner, part owner, or lessee may have or subsequently acquire in the land or leasehold to which the improvement was made or removed. (Ohio Rev. Code 1311.02)

Lien Priority

All liens under (this)section…for labor or work performed or materials furnished to the same improvement prior to the recording of the notice of commencement …are effective from the date the first visible work or labor is performed or the first materials are furnished by the first original contractor, subcontractor, material supplier, or laborer to work, labor on, or provide materials to the improvement. (Ohio Rev. Code 1311.13 (A)(1)) The liens shall be preferred to all other titles, liens, or encumbrances which may attach to or upon such improvements...recorded subsequent to the recording of the notice of commencement. (Ohio Rev. Code 1311.13 (F)

Notices and Registries

A Notice of Commencement is good for 6 years unless otherwise stated on the Notice itself. O.R.C. 1311.04(S).

Filing Deadlines

(B) The (mechanic’s lien) affidavit shall be filed within…the following period…: (1) If the lien arises in connection with a one- or two-family dwelling or in connection with a residential unit of condominium property as defined in Chapter 5311. of the Revised Code, within sixty days from the date on which the last labor or work was performed or material was furnished by the person claiming the lien;… (Ohio Revised Code 1311.06)

Enforcement Deadlines

Liens under (these)sections …continue in force for six years after an affidavit is filed in the office of the county recorder under section 1311.06 of the Revised Code. If an action is brought to enforce the lien within that time, the lien continues in force until final adjudication thereof. (Ohio Rev. Code 1311.13(C))

Other

There is no statutory cancellation procedure for NOCs in Ohio. NOCs for completed construction can be insured over provided an affidavit is obtained from the owner reciting when all construction was completed and stating that the general contractor and any sub-contractors have been paid. That affidavit is then recorded.

If the completion date is within 75 days on commercial or 60 days on 1-4 family, lien waivers are required from all subs, suppliers, and the general contractor plus an indemnity from the owner.

Cross-References