A mechanics lien allows a contractor to “secure” a debt owed to them by placing a lien on real estate. In theory, this is similar to how a mortgage allows a bank to “secure” a loan debt. The Massachusetts mechanic’s lien laws essentially offer general contractors a means of collecting payment for labor and materials in cases where the property owner or lessee has not paid them. In Massachusetts lien law, subcontractors can place mechanics liens on real estate as well.
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What Is a Mechanic Lien?
A mechanics lien provides a contractor, supplier, or subcontractor with a way of securing payment for labor or materials they provided at a job site. There are many reasons why a contractor or supplier would file a lien on a property. For example, say a homeowner hires a company to remodel their kitchen.
The contractor organizes the project, purchases supplies, and hires subcontractors. The homeowner pays a deposit at the start of the project and another halfway through. Once the remodel is complete, they refuse to pay the contractor the final payment. The contractor can file a mechanics lien on the property for the unpaid amount.
In another situation, a contractor purchases materials from a supplier, such as tiles used to create a backsplash in a kitchen remodel. The homeowner pays the contractor for the remodeling project and all the materials used during it. But the contractor never pays the company that supplied the tiles. The supplier can file a lien on the house. The homeowner can end up responsible for paying for the tiles, even though they have technically already paid for them when they paid the contractor – the homeowner may have a claim for damages against the contractor in such a situation.
Mechanics liens encumber a property’s title. If an owner wants to sell their property later, they’ll need to pay the lien to have it removed from the title or secure a lien discharge from the contractor lien holder. They could try to sell the property with the lien still on it, but a potential buyer will likely want a clean title, free of any liens. If a property has a mechanics lien on it, it is difficult to refinance a mortgage or get a home equity loan, as many lenders won’t lend money on a property that has liens.
How a Mechanics Lien Works
To establish and ultimately enforce a mechanic’s lien, several documents need to be prepared. When the construction work is done, and there is a written contract, a “Notice of Contract” must be prepared and recorded at the registry of deeds. Later in the process, a document called the “Statement of Amount Due,” which includes an accounting of the monies paid and owed is recorded at the registry of deeds. Lastly, once all the proper paperwork is recorded at the registry, the contractor must file a complaint against the parties who owed them money to enforce the mechanic’s lien. It’s important to note that each step of the mechanic’s lien process is subject to strict and precise deadlines.
Once the mechanic’s lien enforcement lawsuit is commenced, the case can be litigated along with other claims. If they do not receive payment, the contractor lienholder can foreclose the lien and force the sale of the property to recover their money.
What Can a Lawyer Do for You?
Whether you are a contractor, subcontractor, or supplier who hasn’t been paid for work you performed or materials you provided, or a property owner with a lien on your property, a construction attorney at Calabrese Law Associates Boston and Burlington, MA can help. Since laws about mechanics liens vary from state to state, it’s important to work with an attorney who is familiar with your state and local area’s laws.
For contractors, subcontractors, and suppliers, an attorney can guide you through the process of filing a lien on a property. An attorney can also help you decide if suing the property owner or contractor for non-payment is a more efficient option than filing a lien.
If you’re a Boston property owner with a lien on your house, condo unit, or land, a Massachusetts mechanics lien construction attorney at Calabrese Law Associates can provide advice to seek to remove the lien or dissolve the lien in court. Alternatively, if you are about to have renovations or other work performed on a property, consulting a construction lawyer in advance can help you avoid any situations that could lead to a lien. For example, an attorney can create a contract between you and the contractor that ensures everyone is paid for their work as the project progresses.
Contact Calabrese Law Associates
The intricacies of the Massachusetts mechanic’s lien law often require the retention of a mechanic’s lien litigation attorney. Calabrese Law Associates has handled numerous mechanic’s lien matters for contractors and property owners alike in Boston and the Greater Boston Area. The firm’s construction attorneys are experienced in filing mechanic’s liens and mechanics lien litigation in Boston and throughout Massachusetts. Whether you are a contractor, supplier, or property owner, you can benefit from consulting with top-notch construction litigation lawyers at Calabrese Law Associates. Contact us today.
*This publication and its contents are not to be construed as legal advice nor a recommendation to you as to how to proceed. Please consult with a local licensed attorney directly before taking any action that could have legal consequences. This publication and its content do not create an attorney-client relationship and are being provided for general informational purposes only.
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