Mechanics’ Liens for Contractors and Subcontractors in Maryland
Unlike what the name suggests, a mechanics’ lien is a legal mechanism that contractors (and subcontractors) may utilize in order to ensure that they are paid for their labor, services, and materials on a construction project. Contractors that obtain a mechanics’ lien receive security on real property that they can turn to in case they are not paid on a project. An experienced Rockville, Maryland attorney can assist contractors in obtaining a mechanics’ lien.
How Do Mechanics’ Liens Work?
When a contractor obtains a mechanics’ lien, they can force sale of the property to obtain an unpaid amount due on a project. Subcontractors can also receive a mechanics’ lien even if they do not have a contract with the property owner, so long as they have an agreement with the contractor, and the contractor has an agreement with the owner. Other construction professionals, including suppliers and architects, may also obtain mechanics’ liens.
On What Types of Property Can a Contractor Obtain a Mechanics’ Lien?
A contractor may obtain a mechanics’ lien on new buildings and older buildings in which the contractor’s labor increases the property value. A contractor may not obtain a mechanics’ lien in certain other situations, such as on public buildings or if the owner has already paid the contractor. If construction was begun but not completed, a contractor may receive a mechanics’ lien to the extent that the work was completed or materials were provided.
How May Contractors Obtain a Mechanics’ Lien?
In Maryland, unlike in many other states, contractors must file a petition with the court to request a mechanics’ lien. This must be done within 180 days after the contractor provides labor or materials for the project. The court filing for the lien must include the following:
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A complaint laying out the reasons why the contractor is entitled to a mechanics’ lien (with detailed information about the owner and the property).
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A sworn statement detailing the facts that entitle the contractor to the mechanics’ lien.
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Any other documents which are necessary to prove the claim, unless the sworn statement explains why they are not necessary.
How Can Contractors Enforce a Mechanics’ Lien?
Once a contractor obtains a mechanics’ lien, they have one year from the date the petition was filed to file a court action to enforce the lien if they have not been paid on the project by that time. When the court grants this petition, it will usually set a deadline for the owner to pay the contractor or face the sale of the property.
Contact a Rockville, Maryland Construction Law Attorney
If you are a contractor who wants to obtain a mechanics’ lien on property to secure the amount you are owed on a project, an experienced Silver Spring, MD construction lawyer can provide advice and representation. At Salvado Law Offices, we have experience with complex Maryland mechanics’ lien cases. Contact our offices at 301-933-1814 for a consultation today.