Most people who provide services to customers and clients have heard a thing or two about mechanic’s liens. But, that’s about the extent of their knowledge, so we often receive questions asking if we can help attain one for our clients–often too late.
What is a mechanic’s lien? It’s filed pursuant to G.L. c. 254, which was designed to provide security to contractors, subcontractors, laborers and suppliers whenever they add value to real estate. However, the statute requires a series of notice and filing requirements to protect property owners and anyone else who may have an interest in the property.
Who can obtain a mechanic’s lien? If someone performs personal labor on property, with no written contract, section 1 of the statute allows for a lien to be filed for personal labor… for not more than thirty days’ work for work filed within 90 days of filing. Section 8 then requires the laborer to file or record the lien within the appropriate registry of deeds, during the 90 days. Also, during the 90 days, an action must be filed. Once the action is filed, an attested copy of the complaint must also be filed with the registry (again, within 90 days from the previous step).
If there is a written contract, section 2 of the act applies, and notice of the contract must be filed at the registry. Similarly, this action secures the laborer for 90 days, during which time he should file a notice of contract, termination, or it simply runs until 90 days after the work is completed. The subcontractor must give notice to the landowner, or the lien will be lost.
If you find that a mechanic’s lien has been placed on your property, how can you resolve it? If the lien has been dissolved, the contractor should file a notice. Another method is to file a bond with the court, pursuant to G.L. 254 sections 12 and 14. When using this method, notice must be given to the claimant, via an officer qualified to serve civil process. Of course, if the landowner is successful in court, if things go that far, then the court issues a judgment which is sent to the registry.
Chapter 254, section 15A, sets forth a summary procedure for obtaining resolution from the Superior Court. The claimant must file a verified complaint with written proof of the alleged facts. A hearing may be held within seven days; however the reasons for release of the claim must comply with subsections a-f of this section.
While this statute may seem rather complex, it enables contractors and laborers to protect their interests, while balancing the landowner’s rights. With the correct approach, it can provide clients with an acceptable form of security; or conversely, landowner clients with sufficient protection of their property rights.
