Maryland Mechanics Lien Guide and FAQs

In Maryland, all lien claimants must file their lien within 180 days from last furnishing labor or materials to the project. To establish the lien, an action must be filed in a court of the county in which the property to be subjected to the lien is located.

Yes. Maryland requires the filing of an action in the circuit court of the county in which the property is located in order to establish a mechanic’s lien. Because the “filing” of the mechanics lien is accomplished by initiating a court action, the general rules of civil procedure apply, and the action should be served on all interested parties.

Not generally. Maryland usually allows lien claimants to only include the amount unpaid for labor, material, and equipment supplied to the project, with the total contract amount being a cap. However, if a lien claimant’s contract provides for the same, interest may be allowed to be included in the lien claim. Attorney’s fees may be awarded at the discretion of the court in a successful action. Consequential damages and general overhead are not allowable in lien claims.

In Maryland, a lien claimant is required to initiate his enforcement of the lien by filing a Petition to Enforce the lien within 1 year from the date on which the Petition to Establish the lien was filed. As a practical matter, the two petitions can be, and usually are, combined in a Petition to Establish and Enforce Mechanics Lien. This is useful due to the possibility that the lien may not be established by the court within 1 year from the date of filing the original petition to establish the lien. If this was to happen, the lien claimant would lose the ability to enforce his lien claim even if the court issued a final order establishing the lien.

No. In Maryland, a mechanics lien does not attach to the property until formally established by judicial order. All other liens and encumbrances attached to the property prior to the judicial order have priority over the mechanics lien. The mechanics lien will have priority over liens and encumbrances which attach after the mechanic’s lien. Among competing mechanics liens, none has priority over any other, and the proceeds of any foreclosure sale is distributed pro-rata.

No. Maryland requires “a description of the land, including a statement whether part of the land is located in another county, and a description adequate to identify the building.” While a full legal description is not necessary, the fuller the description the more likely it will be determined sufficient. A copy of the deed incorporated by reference, or the full legal description of the property, is clearly sufficient; another description held to be sufficient included the street address with zip code, tax map parcel number, and several photographs of the property.

Maryland requires a court action to be initiated in order for a mechanics lien to attach to the property – the requirements of any other lawsuit apply. Further, the petition must be accompanied by an affidavit of the lien claimant, or another on his behalf, which sets forth the facts upon which the petitioner believes he is entitled to the lien.

An interior designer must be certified in order to claim the benefit of a mechanics lien. If the lien claimant is a corporation, it must be registered to do business in the State of Maryland in order to claim a mechanics lien.

Yes, a mechanics lien may be filed against a project involving a condominium, provided the lien claimant would otherwise have valid mechanics lien rights. For a condominium project, however, the petition must name all the property owners in the condominium as defendants.

Maryland mechanics lien statute provides that, at the time of settlement or payment in full between a contractor and an owner the contractor is to give the owner a signed release of lien for lower tier parties. Since the mechanics lien must be initiated through court order, the court will determine the cancellation of the lien upon payment.

Maryland does not have statutory lien waiver forms; therefore, you can use any lien waiver form. Since lien waivers are unregulated, be careful when reviewing and signing lien waivers.

Also, Maryland state law prohibits subcontractors and suppliers from waiving their right to file a mechanics lien in contract.

To learn more about lien waivers, see our Maryland Lien Waiver FAQs and Resources.