Categories

Mechanics liens are an incredibly powerful way to ensure you get paid on a construction project. Once filed, the owner and/or full general contractor volition attempt to resolve the payment dispute before the claim is foreclosed. Many times, this involves a hope to pay or an offer to set up a payment plan. But what if payment never comes? Can you lot re-file a claim after the lien has been removed?

Mechanics Liens Must Be Released When Paid or ExpiredRelease a Mechanics Lien

Later a mechanics lien has been filed, in that location comes a fourth dimension when information technology must (or at to the lowest degree should) be released. This may exist considering the claimant has been paid, or because the lien has expired without enforcement being initiated. As has been discussed on this blog previously, some states mandate the release of a mechanics lien in the above situations.

Even in states that don't specifically mandate the removal of the lien within a certain time period, failure to remove the lien when the underlying merits has been paid, or after the lien has expired with no enforcement proceeding being initiated, may result in courtroom costs, attorney's fees, and even penalties. Sometimes, even so, a claimant may be under pressure to release a lien prior to either of these situations occurring – what happens and so?

  • See: Satisfaction or Bust: Lien Release Deadlines & Penalties in All fifty States

Mechanics Liens Shouldn't Be Released Before Payment

It is generally not a good idea to release a lien prior to payment.Information technology is generally non a good idea to release a lien prior to payment. Despite this, however, it is not uncommon for a lien claimant to get some pressure to release a lien for the promise of some time to come payment. There is clear friction between the paying party and the lien claimant in this situation; the paying party wants the lien released before paying, and the lien claimant wants to hold onto the lien until the payment clears. This makes sense, only can throw a wrench in the works of facilitating payment. Understandably the paying party doesn't want to expose himself to potential double payment or legal hassle if he pays and the lien is not released. The lien claimant is in an equally, if non more, tough position: if the lien is released and no payment is forthcoming, the mechanics lien claimant is likely out of luck. The claimant could still sue for payment, but all of the security gained by filing the lien (causes of action against more than than his hiring party, the option to foreclose, etc.) is gone. Once a lien is released, it's probably gone forever.

Levelset Software Product Screenshot

Demand to cancel your mechanics lien?

We're the Lien Cancellation experts. With us information technology's fast, like shooting fish in a barrel, affordable, and washed right.

File Now

Tin can Mechanics Liens Be Re-Filed?

Unfortunately for a lien claimant who prematurely released his lien claim on the false promise of an upcoming payment, it is unlikely that the lien can be re-filed. At that place are multiple reasons for this. One applied reason is that it is probable that the time flow in which a lien must be filed has already passed, or in states that require a notice of intent prior to filing a lien, that the deadline volition pass by the fourth dimension a lien would be immune to be filed. Also, virtually lien release documents have some statement that the lien release is concluding and the result of payment. Finally, fifty-fifty without considering the practical aspects, it'southward ofttimes just forbidden to re-file a mechanics lien.

What should a lien claimant do in this state of affairs. Clearly, the best solution for the lien claimant is to file the release but upon payment of the amount owed (and if payment is by cheque, after the bank check clears). The lien claimant really has the leverage in this situation, and then it may be able to be used to work for a resolution favoring the lien claimant. If that approach seems similar too much of a strong-arm tactic, there is some other option. An attorney or escrow service may be willing to hold the lien release in escrow to be recorded pursuant to the receipt of the funds.