Construction Liens in Washington
Contents
Overview
Construction liens in Washington are also referred to as "Mechanics'" and "Materialmen's" liens throughout the Washington Revised Statutes.
Sources
Wash. Rev. Code §§ 60.04.011 et seq.
Authorized Claimants
For the purposes of construction of any improvement upon real property at the instance of the property owner or construction agent of the owner, the following people may file a construction lien:
- Any person performing labor related to the construction;
- Any person providing supplies or materials to be used in the construction;
- Any person renting, leasing, or otherwise supplying of equipment for the construction; or
- Any person surveying, establishing or marking the boundaries of, preparing maps, plans, or specifications for, or inspecting, testing, or otherwise performing any other architectural or engineering services for the improvement of real property.
Lien Priority
A perfected claim of lien shall be prior to any lien, mortgage, deed of trust, or other encumbrance which attached to the land after or was unrecorded at the time of commencement of labor or professional services or first delivery of materials or equipment by the lien claimant.
Notices and Registries
Certain “Pre-Notices” are required before a construction lien may be enforced:
- The general rule is that every person furnishing professional services, materials, or equipment for the improvement of real property must give the owner or reputed owner notice in writing of the right to claim a lien.
- However, RCW 60.04.031(2) exempts the following persons from the pre-claim notice requirement:
- Persons who contract directly with the property owner, either directly or through the owner’s common law agent. In the case of work on an owner-occupied single-family residence, this exemption applies only to persons who contract directly with the owner-occupier;
- Persons whose claim is solely for labor; and
- Subcontractors who contract directly with the prime contractor (“first tier subs”); however, first tier material or equipment subs are not exempted. This exemption also does not apply in the case of work on an owner-occupied single-family residence.
- The pre-claim notice must be given to the owner or reputed owner and is effective upon delivery or proper mailing. RCW 60.04.031(1).
- The pre-claim notice may be given at any time, but on commercial projects the notice only protects the right to claim a lien for work performed or materials or equipment supplied after the date 60 days before notice is effective. Later notice will preserve lien rights for part of the work only. RCW 60.04.031(1).
- In addition to the foregoing, the contractor registration statute requires any contractor performing certain defined work (generally of limited scope) to provide a disclosure statement to its customer. The statute provides a form of disclosure statement, which must be substantially followed. RCW 18.27.114(1).
Perfecting a Lien
A construction lien must be perfected not later than ninety (90) days after ceasing to furnish labor, professional services, materials, or equipment.
To perfect a construction lien, a claim must be filed with the recording officer of the county in which the real property is located.
The claim must contain:
- The name, phone number and address of the claimant;
- The first and last date on which labor, services, materials or equipment were furnished;
- The name of the person indebted to the claimant;
- The street address, legal description or other description reasonably calculated to identify the location of the subject property;
- The name of the owner of the property; and
- The principal amount of the lien.
The claim must also include a verified oath by the claimant or someone authorized to act on their behalf to the truth and accuracy of the claim by penalty of perjury.
A copy of the recorded lien must be given to the owner of the property within fourteen (14) days of the of recording the lien or the claimant will not be entitled to recover attorneys' fees.
Enforcement Deadlines
A construction lien encumbers real property for eight months after the claim of lien has been recorded with the county, unless a lawsuit is filed to enforce the lien within that time frame.
If there are terms of credit given in the claim of lien, the lien encumbers the real property for eight months after the expiration of such credit.
If a lawsuit is brought to enforce the lien and does not end in judgment within two (2) years, the court may dismiss the action and dismissal of the action constitutes a cancellation of the lien.
Releases
1. Bonding Over a Lien
Anyone with an interest in the encumbered real property may remove a perfected construction lien from the land or improvement by filing a bond with the county recorder's office. The bond must contain a description of the claim of lien and real property involved. The lien security then shifts from the property to the bond.
If the lien claim is $10,000 or less, the bond amount must be equal to $5,000 or twice the lien claim, whichever is greater. If the lien claim is more than $10,000, the bond amount must be equal to or greater than 1.5 times the lien claim.
If no lawsuit is commenced to recover on a lien within the eight-month deadline stated in RCW 60.04.141, the surety is discharged from liability under the bond.
2. Releasing a Lien
Upon payment and acceptance of the amount due, the lien claimant must immediately prepare and execute a release and deliver it to the person making payment. RCW § 60.04.071
The lien release should, a) be recorded with the county where the property is located; b) reference the original lien recording document information and property that is subject to the lien; c) state that the lien is paid in full and that the lien is released; and d) be signed by the original lien claimant.
Other
Per Washington case law, the lot, tract or parcel of land which is improved is subject to a lien to the extent of the interest of the owner at whose instance, directly or through an agent, the labor, professional services, equipment or materials were furnished, as the court deems appropriate for satisfaction of the lien. If for any reason the title or interest in the land upon which the improvement is situated cannot be subjected to the lien, the court in order to satisfy the lien may order the sale and removal of the improvement from the land.
A perfected claim of lien constitutes notice to the spouse or domestic partner of the person who appears of record to be the owner of the property sought to be charged with the lien, and subjects all the community interest of both spouses or both domestic partners to the lien. RCW 60.04.211
