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.
Crop lien for furnishing work or labor: RCW 60.11.040.
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
Pre-claim notice is required depending on the project and the relationship between the lien claimant and the owner of the property. Pre-claim notice may be given at any time. However, pre-claim notice must be given within 60 days of starting work in order to preserve the lien right for all work on the project. Pre-claim notice given after 60 days will only preserve lien rights for a portion of the work.
Specific to new construction of residential projects, the pre-claim notice must be given within ten (10) days of starting work to preserve the lien right. Lien rights are only protected for the amounts the owner has not yet paid when the notice is received.
Additional pre-claim notice may be required of persons providing professional services for construction.
Perfecting a Lien
A construction lien shall 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 claim must be given to the owner of the property within fourteen (14) days of the time the claim is filed for recording.
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 shall constitute a cancellation of the lien.
Releases
1. Bond
A property owner may remove a perfected construction lien from the land or improvement by filing a bond with the county recorder's office. The bond shall contain a description of the claim of lien and real property involved.
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 time period listed in RCW 60.04.141, the surety shall be discharged from liability under the bond.
2. Release
Upon payment and acceptance of the amount due, the lien claimant shall 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.
