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A
mechanic's lien is a hold on real property
for the benefit of someone whose work or property
improves the property. Through the legal action
of "perfecting" a lien, the technical
term for establishing a mechanics lien permanently,
the owner's title to the property suffers
an interference that will have to be addressed
before the owner can restore clear title.
Generally, a lien would only arise if there
is a payment dispute, although most states
(e.g. California, Texas, Florida) require
pre-lien notices at the beginning of a project
to establish a right to a full lien.
Since
real property ownership is mostly a function
of state or federal law, establishing a mechanics
lien is mostly a process governed by state
or federal law, in particular the mechanics
lien and public claim statutes. The process
for perfecting a mechanics lien varies significantly
from state to state. However, common parts
of the process of perfecting a mechanics lien
include notice to the owner and to other persons
or entities involved in the construction project,
and also the drafting and filing of a document
with the government office that records deeds
or titles to land. This is the work that Lien
Writer™ does for you.
Mechanic's
liens are also sometimes known as contractors
liens, materialmen's liens and construction
liens. Historically, the term "mechanic"
once referred to any person who did physical
labor, not limited to current usage that assumes
a machine to be the subject of that work.
Thus, at the time the phrase "mechanics
lien" was invented, the understanding
was that such a person might be a carpenter,
plumber, or the like. Because of the change
in the meaning of the word "mechanic,"
some states have changed the statutes to have
a "mechanics lien" for people who
work on cars and the like, and separate "construction
lien" statutse to deal with construction-related
payment disputes, including contractors, material
suppliers, professional services and equipment
suppliers.. The term "lien" comes
from the French root (via William the Conqueror),
with a meaning similar to link; it is related
to "liaison."
What
type of contribution counts as a valid basis
for a mechanics lien is also variable. The
core purpose is protecting the benefit that
a worker or material supplier provides, such
as the time and effort a carpenter puts into
nailing the boards together on the job site,
and thus is included in the scope of most
liens. However, other types of contributions
are less direct - the contribution of an architect,
or the supply company that delivers materials,
or a company that rents the backhoe to the
contractor, or the company that rents the
port-a-pots to the contractor, or the truck
that brings food to the workers at lunchtime.
There is no simple dividing line that is useful
in every state, or even in every case. Often,
determining whether a party has a legitimate
lien right depends on examining other cases
that have either upheld or rejected lien claims
in the same state. And, this is something
for which Lien Writer™
provides support
Mechanics
liens are a reaction to the imbalance of power
between a worker or supplier at a construction
site, and an owner of that land. The worker
or supplier makes the time and effort investment
on the assumption that the owner or general
contractor will pay, but until the owner or
general contractor does pay, the owner is
in a significantly superior power position.
The improvements have already been made, and
it will not significantly benefit the worker
to demolish the work. Thus, unscrupulous owners
or general contractors could simply lock the
tradesman or supplier out of the property,
retain the benefit, and refuse to pay. Additionally,
as a society we benefit by having improvements
to buildings, and knocking them down as a
resolution to disputes is economically inefficient.
Because of the difficulties inherent in contract
suits, most clearly time and cost, states
decided to provide a simpler procedure for
putting pressure on an owner to pay a claim,
short of executing a judgment.
Even
a judgment is not always a answer. If one
is hired by the general contractor rather
than the owner, and the general contractor
does not pay his workers and suppliers, they
may have no legal recourse against an owner
except a mechanic's lien. They did not, after
all, contract with the owner directly!!
While
the mechanics lien is overall a benefit to
the workers and suppliers, there are protections
in the process for the owner. Generally, the
workers and suppliers must follow a strictly
constrained process, and failure to follow
that process will invalidate the lien. Some
parts of that process are intended to prevent
disputes from ocurring, such as a structure
of mandatory notices and disclosures that
provide the owner an opportunity to ensure
that the project's finances are being properly
managed, in addition to being able to monitor
the physical progress of the work. Again,
this is what Lien Writer™
is precisely designed to handle.
Mechanics,
Mechanic's, Mechanics' - From a grammar standpoint,
use of the apostrophe is variable in legal
proceedings, and the elimination of it matches
some states' usage.
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