5 essential things to know in Wyoming
Contractors & suppliers have strong lien rights in Wyoming. If a contractor or supplier isn’t paid on an Wyoming job, they can turn to filing a lien to speed up payment and protect themselves. However, there are specific requirements and rules that must be followed. Here are 5 essential things you need to know about Wyoming’s mechanics lien law.
A wide range of project participants have mechanics lien rights
In Wyoming, both general contractors directly in contact with the property owner and sub-contractors have mechanics lien rights. In addition, material men (a project participant providing materials but not labor), engineers, architects and design professionals all have mechanics lien rights.
The deadline to file depends on the project participant
The deadline to file a mechanics lien in Wyoming depends on the project participant. If the participant is a general contractor directly in contact with the property owner, the mechanics lien must be filed 150 days from the date in which labor or materials were provided or 150 days from the date the project is legally completed (whichever is earlier). A participant not directly in contact with the owner must file 120 days from the date in which the labor or materials were provided or 120 days from the date the project is legally completed.
Preliminary notice is mandatory
In Wyoming, mechanics lien law requires two different types of preliminary notices for all project participants. The due date for each notice also varies. All project participants wishing to file a mechanics lien in Wyoming must first file a Preliminary Notice of Right to Lien with the property owner. Also, every project participant is required to send a notice of intent to lien 20 days prior to filing a mechanics lien on the property.
Failure to submit these notices on time will end in a forfeit of lien rights. General contractors must provide preliminary notices before receiving any form of payment from the owner. Sub-contractors and suppliers have 30 days after first providing labor or materials. Notice of Intent to lien must be sent within 20 days of filing the lien.
All preliminary notices should be sent to the property owner only via certified mail with return receipt requested.
Notices are required in Wyoming before filing a Mechanics Lien
Wyoming mechanics liens can include fees
Wyoming mechanics liens do allow for the inclusion of prejudgment interest, attorney fees, and costs that were incurred for the collection of the unpaid amounts.
Priority for Wyoming mechanics liens depends on timing
Priority depends on timing. If there are preexisting mortgages or encumbrances on a property, a lien filed subsequently does not have priority. However if mechanics lien is filed and then there is a subsequent mortgage or encumbrance, the mechanics lien will take priority. For timing determinations, all mechanics liens relate back to the date on which construction first commenced on the project. Amongst competing mechanics liens in Wyoming, funds must be shared in the event that there are insufficient funds.