Minneapolis Construction Lien Law Lawyer
Edina Mechanics' Lien Law Firm
Contractors, subcontractors and materials suppliers have a strong remedy when real estate owners or general contractors do not pay for improvements. The mechanics' lien gives contractors and others the right to claim an interest in a property, to ultimately compel a Sheriff's foreclosure sale of the property to recover the amount due.
At Hellmuth & Johnson PLLC, our construction law attorneys assist clients with mechanics' liens. We advise them about the process, provide them with required language and help them enforce liens. We also advise clients regarding the applicable filing and notification deadlines. Because of our many years of experience and our automated document creation system, we are able to respond to client inquiries very quickly.
The Mechanics' Lien Process
An unpaid general contractor, subcontractor or supplier must in general follow these steps to claim a mechanic's lien to secure payment:
1. Serve a Pre-Lien Notice: A pre-lien notice informs the property owner that the entity providing the notice might be entitled to file a lien against the owners real property if its bill is not paid. It also tells the owner that if necessary the owner may withhold payment from the general contractor sufficient to pay the subcontractor or supplier directly. If a pre-lien notice was required and an entity did not provide it, that entity may not enforce a mechanic's lien. Pre-lien notices are generally required only on residential projects, or smaller commercial projects consisting of less than 5,000 square feet. However, the rules and exceptions can be complicated and an attorney should be consulted when determining whether a pre-lien notice is required.
a. Subcontractors/Supplier Pre-Line Notices: Subcontractors and suppliers must provide a pre-lien notice to the owner (if required by law) within 45 days of beginning work on or contributing materials to the property.
b. General Contractor Pre-Lien Notices: General contractors (those in contract directly; with the property owner or its authorized agent) who will be using subcontractors or material suppliers must provide a pre-lien notice in their written and signed contracts with the property owner. If there is no written contract, the pre-lien notice must be provided by personal service or certified mail within 10 days after the work is verbally agreed upon. However, note that licensed residential contractors must use written contracts, and therefore the pre-lien notice must be contained in the written contract for residential work.
2. Do the Work: Provide labor or materials in connection with building upon or improving real property. General maintenance and repair work often does not qualify for mechanic's lien coverage - the work must improve the property.
3. File and Serve a Mechanic's Lien Statement: The lien claimant must file a mechanic's lien statement against the real property in question with the county recorder or registrar titles stating the amount actually owed per the contract or reasonable value of its labor or materials. This document must be filed within 120 days of the lien claimant's last day of work on the property; and
4. Foreclose Upon the Lien: Starts or joins a lawsuit to foreclose upon its mechanic's lien within one year from the last date of work on the property. Note that this one-year period runs from the last date of work, not from the date the lien was filed with the county. Also note that unless legal action is taken to enforce it, a mechanic's lien automatically expires at the end of the one-year period and cannot be renewed.
Contact a Minneapolis construction law attorney at Hellmuth & Johnson PLLC for more information.
Attorneys who handle mechanics' liens are:
