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Construction Liens

What is a Construction Lien?

A Construction Lien, also known as a Mechanic's Lien, is one of the most powerful collection tools in our industry. Anyone who has worked on a construction project, made improvements to real property and has not been paid for their materials, services, and/or labor should consider filing a lien in the event of non-payment. Some states require that you send a preliminary notice and/or intent to lien within a specific period of time before you file your lien. Make sure that you read your states requirements.

File a Mechanic's Lien
Mechanics Lien ensures your payment
Secures your equity interest in the property.
Mechanics Lien sets a cut off date for payment
Lenders will stop funding the project.
Mechanics Lien gives you upper hand in the negotiation
Prevents the sale of the property.
Mechanics Lien Register in the permanent records of the property
Recorded in the official records.

What are the requirements to file a Construction Lien aka Mechanic's Lien in your state?

All 50 states have lien laws. But every state has different requirements and deadlines to file the lien. Some states require a Preliminary Notice and/or an Intent to Lien before filing a Mechanic's Lien. Check the map below to find more information about your state's Mechanic's Lien requirements.

Ultimate guide to mechanics lien by SunRay
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Download Mechanics Lien Playbook
Send your Preliminary Notice
There is a statutory notice for both private projects and public projects.
There is a statutory notice for private projects only.
No notice required, but it's recommended to serve a non-statutory notice.

Steps to File a Mechanics Lien

Preliminary Notice
Send:Demand Letter
Intent to Lien
Take Control:
File Mechanic's Lien
Once you get paid:
File your Satisfaction

Send Preliminary Notice.

It is a pre-requisite in the majority of the states.
A Preliminary Notice is a construction notice that subcontractors, equipment lessors, and material suppliers must send at the start of a construction job in order to secure their lien and/or bond claim rights.

While a Preliminary Notice is not required for every state it's highly
Send a Preliminary Notice

Send Demand Letter.

A demand letter can be a very effective tool in getting paid.
It informs your customer and other parties involved that payment is past due which may result in a more serious action if payment is not received.
Send your Demand Letter

Send your intent to lien.

Intent to lien is a mandatory document in some states before filing a lien.
In some states, a Notice of Intent is a legal requirement before you can file a Mechanics Lien. It warns that you will lien the project if payment is not received within a certain number of days.
Send Intent to Lien

File Your Lien.

Take control of your payments. Ensure cashflow for your projects.
If you lien a property, the property cannot be sold. This is because your lien clouds the title of the property.

If there is a lender, the lien can stop the funding to the project.

The lien informs all required parties that you are working on the project and have not been paid.
File Mechanic's Lien

File your satisfaction.

Once you are paid in full, file your satisfaction of lien.
A Satisfaction of Lien is recorded in the public records where your lien was recorded and is the final step once you have been paid.
File your Satisfaction of Lien
Get Paid
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Mechanic's Lien FAQs

Frequently asked questions on Mechanic's Lien or Construction Lien

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