Mechanic’s liens are powerful tools for contractors and suppliers to ensure payment for their work on construction projects. In Tennessee, these liens provide a legal claim against the property, ensuring that those who contribute to its improvement receive fair compensation. Understanding the intricacies of mechanic’s liens is crucial if you are a contractor seeking payment or a property owner facing potential claims.
What are the key deadlines for filing a mechanic’s lien?
Time is of the essence when it comes to mechanic’s liens in Tennessee. The state law sets specific deadlines that contractors must follow:
- Prime contractors have one year from the completion of work to file a lien
- Subcontractors and material suppliers must file within 90 days of the last day of work or delivery
- The complainant must serve the notice of nonpayment within 90 days of the last day of each month that they provided labor or materials
If you miss these deadlines, your company will have to accept the loss of lien rights, so it’s crucial to keep accurate records and act promptly.
How do you properly enforce a mechanic’s lien?
Enforcing a mechanic’s lien involves several steps:
- File a sworn statement of account with the county register’s office
- Serve a copy of the lien notice to the property owner
- File a lawsuit to establish the lien within one year of filing the lien
It is important to note that Tennessee law requires strict compliance with these procedures. Any errors in filing or serving notices can invalidate the lien.
What should you consider before pursuing a mechanic’s lien?
While mechanic’s liens can be adequate, they involve complex legal processes. Each case has unique factors that can affect the outcome. Property owners may have defenses against liens, and contractors must ensure they have fulfilled all contractual obligations. Given the potential consequences and the need for precise documentation, seeking legal guidance can help protect your interests and increase the likelihood of a favorable resolution in construction payment disputes.
