South Carolina Mechanics Lien – Without Owner Contract Form

Generally, mechanics lien rights stick with the project property. So, when the property is sold mid-job, the new owners should become responsible for any potential lien claims. Levelset discusses that in these article: What Happens If I Filed My Mechanics Lien After the Property Was Sold?

According to South Carolina's priority rules, a mechanics lien filed after the new owner's mortgage wouldn't take priority over the mortgage. However, a lien claim should certainly be an alarming development for a new commercial owner and could force some action on their part - whether that be them stepping in to resolve the matter, them contacting the prior owner and forcing them to deal with the matter, or some other resolution.

As for required notices - South Carolina general contractors don't have any mandatory preliminary notices, so there's no notice that becomes required simply due to the sale of the property. Note, though, that contacting the new owner to notify them about the payment situation would be wise. 

To the extent it looks like a lien may be required to recover payment, it'd also be wise to send any payment reminders, demands, or Notices of Intent to both the original owner and the new owner - the more eyes on the issue, the better the chances that recovery. Plus, if all parties are brought to the discussion, that'd improve transparency on the payment communications and could lead to a quicker resolution. Not to mention, an original owner who's failed to make payment could run into even bigger issues surrounding the sale.

The answer is probably not. Under South Carolina law, Subcontractor and Supplier liens are to be pro-rated based on what you owed the Contractor at the time the liens were filed. It sounds like the Contractor did not finish the job so the $25,000 contract balance would be reduced by the amounts you actually spend to complete the work of the original contract and/or correct defects in that original work. If there is anything left of the $25,000.00 contract balance after that you would be obligated to pro-rate it among the lienors (and to pay them that pro-rated amount).

SECTION 29-5-60. Proration of payments among lienors.

(A) In the event the amount due the contractor by the owner is insufficient to pay all the lienors acquiring liens as herein provided it is the duty of the owner to prorate among all just claims the amount due the contractor.
(B) In the event the amount due a subcontractor by the contractor is insufficient to pay all the lienors acquiring liens under Section 29-5-20 as a result of supplying labor, materials, or services to that subcontractor, all just liens must be prorated by the contractor among sub-subcontractors and suppliers to that subcontractor.
 

The short answer is Yes you usually do. The longer answer is that it depends on what type or work or what material you supplied to the project. If South Carolina LLR requires you to be licenesed or registered to do the work than you must have that license or registration in order to file a lien. However, if you aren't required to be licensed (an easy example would be a materials supplier, like tile or brick) then you can still file a lien without a licenese.  

SECTION 29-5-15. Filing requirements; penalty for frivolous lien.

(A) To file a mechanics' lien, a contractor must provide the county clerk of court or register of deeds proof that he is licensed or registered if he is required by law to be licensed or registered. As proof of licensure or registration, the contractor must record his contractor license number or registration number on the lien document when the lien document is filed.

(B) A contractor who files a frivolous lien is subject to a fine up to five thousand dollars, the loss of his registration or contractor license, or both.