Filing a mechanics lien is one of the most powerful tools a subcontractor has to ensure payment. However, the process varies significantly by state, and missing a single deadline or requirement can void your claim entirely. This guide walks you through the general process and highlights the critical details you need to get right.
What is a Mechanics Lien?
A mechanics lien is a legal claim against a property by someone who has supplied labor, materials, or services for improvement to that property and has not been paid. It creates a security interest in the property itself, meaning the property cannot be sold or refinanced without addressing the lien.
This makes mechanics liens incredibly effective. Property owners and GCs take them seriously because an unresolved lien creates a cloud on the title that affects the property's value and marketability.
Step 1: Send Your Preliminary Notice
In most states, you must send a preliminary notice before you can file a lien. This notice informs the property owner, GC, and sometimes the lender that you are providing labor or materials on the project.
Preliminary notice deadlines vary by state. California requires notice within 20 days of first furnishing labor or materials. Texas requires it by the 15th day of the second month after work begins. Some states like Colorado don't require preliminary notices for subcontractors.
The key is to send your preliminary notice on or before the first day of work, regardless of state requirements. This ensures you never miss a deadline.
Step 2: Track Your Deadlines
Mechanics lien deadlines are unforgiving. Miss your deadline by even one day, and you lose your rights entirely. After completing your work, you have a limited window to file your lien.
Filing deadlines range from 60 days to 12 months depending on the state. Many states set the deadline at 90 days after substantial completion of the project or after you last furnished labor or materials. Record your last day of work carefully, because that starts the clock.
Step 3: Prepare Your Lien Document
A mechanics lien document must include specific information to be valid. Generally, you'll need your company name and contact information, the property owner's name, a legal description of the property, a description of the work performed or materials supplied, the amount claimed, and the dates of first and last work.
Errors in any of these fields can invalidate your lien. Double-check the property's legal description against county records. Ensure the owner's name exactly matches the title records.
Step 4: File with the County Recorder
Record your mechanics lien with the county recorder's office where the property is located. Most counties accept filings in person or by mail, and many now accept electronic filings. There's typically a small recording fee.
Step 5: Serve the Lien
After filing, most states require you to serve a copy of the lien on the property owner within a specified timeframe, usually by certified mail.
Step 6: Enforce or Release
After filing a lien, you typically have a limited time to enforce it by filing a lawsuit. If you don't file suit within this enforcement deadline, the lien expires automatically. The enforcement period varies by state but is commonly 6-12 months.
If you receive payment, you must release the lien by filing a lien release with the county recorder.
Common Mistakes That Void Your Lien
The most common mistakes include missing the preliminary notice deadline, missing the filing deadline, errors in the property legal description, claiming the wrong amount, failing to serve the lien on the owner, and missing the enforcement deadline. Any one of these can destroy your claim.
Prevention is the Best Strategy
While knowing how to file a lien is essential, the goal is to never need one. Use payment prediction tools to identify at-risk invoices early. Automate your collection follow-ups. Screen your GCs before bidding. When you do need to protect yourself, lien management software can track every deadline automatically and alert you well before any deadline approaches.