After we filed the mechanics lien, we billed the customer for late fees, can this be deducted from the amount that we ma

2 weeks ago

After we filed the mechanics lien, we billed the customer for late fees, can this be deducted from the amount that we make the partial discharge for?

Senior Legal Associate Levelset
136 reviews

Deciding when to release a filed mechanics lien can be a struggle. But, generally, a mechanics lien should be released when the debt is paid. And, as you may know, Florida mechanics lien claims cannot include costs and fees.

At the same time, it’s pretty common for a claimant to try and negotiate payment of those costs or fees when negotiating a lien release. Still – it’s wise to be cautious, and pushing the envelope too far there could create trouble. And, late fees won’t always be recoverable when negotiating a lien release – generally, that will be up to the parties in the dispute to negotiate, themselves.

Regarding partially releasing a lien claim – note that a partial release or amendment isn’t always necessary. Many times, leaving a lien in place until the claim has been totally satisfied is a preferable option. Levelset discusses that here: I Received Partial Payment — What Should I Do With My Mechanics Lien? Of course, Florida is one of the few states that explicitly allows for mechanics liens to be amended prior to the lien deadline. So, if the deadline to lien hasn’t passed, amending the claim might not be terribly risky.

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
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