Now, this isn’t legal advice. It’s just an outline of a process that lots of guys get wrong — mechanics liens — and what we see lawyers doing to get it right. We offer links to certain resources by permission, as does the law library, but this is not advice on how to practice law or handle your case. This material is provided so that you can have an intelligent conversation with your lawyer.
Before we jump into the details, we should say that filing a mechanic’s lien without having a written contract is like building a house without a foundation. The first thing a craftsman should get right is having the work described in writing and an estimate and terms signed by the owner, general contractor or other customer. This is the only way you will be able to recover your attorney fees.
If you have not read the post on this and followed the advice then you should start here:
Contracts- Avoid Arguments and Lawsuits
Did you check the records to see who the real owner is before you bid on the job? Why not? Next time know who you are dealing with and get it in writing.
Find the Property Owner’s true legal name
In counties other than Jefferson, you may have to call the county Property Valuation Administrator for owner information or referral to their website.
According to attorney Vince Heuser, most counties have a taxpayer lookup page or a third party fee-based service that provides this information.
So there’s a Problem. It is too late?
Ok, so you didn’t verify the actual owner up front, are you doing it as soon as you got a hint of a problem? You should do this on any job where you can’t afford to be ripped off. If payment is overdue by 45 days or more, call your lawyer! The lawyers can check in minutes and save you thousands of dollars. (For a small fee, of course.)
“NOTICES ARE REQUIRED, NOT OPTIONAL.”
Once the work has actually ended, you may have to send certain notices. Let’s hope its not too late. If you did not deal with the owner of a property, you have to send a notice of your intent to hold the property responsible. You have 75 days if the job was owner-occupied or under $1000 and 120 days if not owner-occupied and over $1000. KRS §376.010 sets out the rules. Take a look at:
Mechanic’s Liens — Filing of statement — Notice to owner
There are different styles of drafting documents and as long as a notice complies with the statute, it should be fine. We’ve found some forms out there to give you an idea what that might look like. Realize that there are many styles. Here is one example:
http://heuserlawoffice.com/forms/MECLIEN1-Notice-of-Intent-to-Lien.DOC
http://heuserlawoffice.com/forms/MECLIEN1-Notice-of-Intent-to-Lien.pdf
GET PROOF OF MAILING — ASK THE POSTAL CLERK FOR A “CERTIFICATE OF MAILING”.
Whew. Glad that’s done on time! Now we can just sit back and wait for the check! Oh wait! Was that the correct person for sending the notice? Hope so…
Within six (6) month of the end of the work, the next thing you have to do is prepare and file the lien statement. This is filed and sent regardless of who you dealt with. Again we got samples from the Heuser Law Office:
http://heuserlawoffice.com/forms/MECLIEN2-Statement-of-Lien.DOC
http://heuserlawoffice.com/forms/MECLIEN2-Statement-of-Lien.pdf
Don’t forget to include the property description which you can copy from the Deed.
Mechanics Lien Statement with Property Description
The Mechanics Lien Statement Must Include the Property Description to be Valid!
GET PROOF OF MAILING THE COPY TO THE OWNER — ASK THE POSTAL CLERK FOR A CERTIFICATE OF MAILING.
FILE AND SERVE THE STATEMENT OF MECHANICS LIEN
So now what do you do with this fine form? It gets filed in the county clerk’s office where the property is located. It must be filed within six (6) months of the last work date and a copy sent to the owner of the property. That’s two notices if you didn’t deal with the owner. You might want to read the statute:
Filing of Statement (This is a second mailing.)
After proper notice and proper filing, you still may have to sue to get paid. Good thing you have an “attorney fees” clause in your proposal or estimate form! Otherwise, you might not find a lawyer you can afford. The reason for a signed proposal is to shift the cost of collection to any deadbeats who don’t pay. You don’t want your profits going for attorney fees!
By the way, this isn’t legal advice. Don’t rely on it without talking to an attorney!
PS Hope you didn’t miss the deadlines but if you did… visit:
Alternatives to Mechanic’s Liens
PPS:
Our thanks to
Vincent F. Heuser, Jr.
3600 Goldsmith Lane
Louisville KY 40220
(502) 458-5879
https://heuserlawoffice.com
for sample forms and some clarifications.