I started a fintech company named PayUp, that does invoice factoring in Real Estate. I spoke to Frank and he asked me to put my question on here so that we could get it clarified. 1) We want to know our legal mechanics lien rights as an invoice factoring company if we are purchasing invoices after job completion (therefore cannot send intent to liens before the job has started etc)? 2) Can the mechanics lien be batched by selection of invoices, or does it have to be on every invoice? 3) We currently work in Texas, Florida, NC, & SC but plan to expand throughout the US - which states does this cause an issue with, and which states are we good to purchase receivables whilst maintaining lien rights?
Generally, the only parties who qualify for mechanics lien protection are parties who supply labor and or material to a project for the permanent improvement of property. This means that parties who only supply financial assistance to a project are not the parties generally contemplated by mechanics lien statutes.
In some circumstances, a company can be assigned a potential lien claimant's lien right or, more often, could be assigned an actual lien that has already been filed by an applicable claimant.
Mechanics liens are not necessarily related to individual invoices or any particular batch of invoices. Mechanics liens are related to the amount due / value of the labor or material provided to improve the property.
Work performed in each month must be separately billed for that month.
Notices must be sent on or before 45 days after the end of the month in which the work was performed.
A separate notice must be timely sent for each month for which payment has not been received.
Failure to do the above waives your right to file a lien.
If you give the proper notices then you have to file your lien not later than 90 days after the end of the month in which the work was performed or your lien in no good.