Construction Liens
Contents
Overview
Basic Information
Constructons Liens, also commonly referred to in many states as Mechanic's Liens, Broken Priority, as well as few other terms, are in rem liens filed against properties upon which a contractor, subcontractor, or other skilled laborer has made improvements. In most states, a Construction Lien is a statutory lien that is effective upon filing and that has priority based on the date construction first began. Because of this priority based on factors outside the public records, they are considered "silent liens" in states that give liens this type of priority.
Notices and Registries
In some states, a Construction Lien can have priority that pre-dates the filing date, but only if some type of notice appears in either the public records or in some type of registry prior to the filing date.
Common Types
Construction liens can be categorized into three basic types. The first type is the more tradition type of statutory lien that can be filed without any prior notice to third parties. The second type is a more recent type of statutory lien that requires some sort of notice or registration in order for a lien to be given priority before the filing of the lien. The third type of lien is really any lien that has no hidden priority.
Blog Article (note that some of the states are not in the correct category.)
Lawsuits
Nearly every type of Construction Lien has a deadline in which to enforce the lien by filing a lawsuit, otherwise the lien will expire by its own terms. The expiration of the lien does not typically mean that the contractor cannot file a regular lawsuit at some point for breach of contract or similar causes of action, but any judgment obtained after the lapse of the lien will not be given the priority enabled by the statute.
