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Can I file a mechanics lien if I'm not licensed?

TennesseeMechanics Lien

I need to file a lien on a mixed use property that I did work on in Tennessee a few months ago. I am not licensed and did work on the owner occupied residential part of the mixed use property which is all on one parcel. Can I still file a lien since I have not been paid for the work I've completed at their residence?

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Dec 18, 2019

Tennessee Mechanics Lien Rights

Tennessee mechanics lien law is codified in T.C.A. §66-11-101 et. seq. Most projects provide a broad spectrum of parties mechanics lien rights. Where Tennessee law seems to draw the line, however, is residential projects.

TN Mechanics Lien Rights on Residential Projects

On residential projects there are two exclusions to lien rights that may be applicable. The first is found in §66-11-146, which states that on residential, owner-occupied projects of 4 units or fewer, only those with a direct contract with the property owner, on may file a mechanics lien. If the owner is acting as the GC, then only those that have a contract with them may file a mechanics lien. The second, and more pertinent to your question, is found in §62-6-128, this statute states that a mechanics lien is not available for unlicensed contractors working on a single-family, residential projects who are providing work which requires a contract. You may find this article helpful: Can't File a Lien? Here are Some Other Recovery Options
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Dec 18, 2019
Thank you for sending me the detailed response regarding my question. However, this single family, owner occupied residential unit I have been working on is classified as mixed use COMMERCIAL property. Wouldn't that give me the right to file a lien since it's considered commercial property?
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Dec 18, 2019
In that case, there is no language in the statute that requires a contractor to be licensed in order to file a mechanics lien on a mixed commercial/residential property. If you are experiencing payment problems on the project, then it's important to start keeping an eye on your deadlines.

Tennessee Mechanics Lien Deadlines

Tennessee Notice of Nonpayment Deadlines

In order to secure TN mechanics lien rights, contractors will need to send Notices of Nonpayment to both the owner of the property and the prime (general) contractor. This notice must be sent by registered or certified mail, with return receipt requested, or personal service through a commercial delivery service. As far as timing, the notice will need to be received within 90 days of the last day of each month in which labor or materials are provided to the project. Missing this deadline won't destroy mechanics lien rights, but it will affect the amount recoverable. The mechanics lien will only be valid for the amount that were months that were timely secured by the notice. If there are multiple months where non-payment occurred, then multiple notices will need to be sent to secure the full amount of unpaid labor or materials.

Tennessee Mechanics Lien Filing Deadline

As for filing the actual lien claim itself, the Notice of Lien & Sworn Statement needs to be filed in the county recorder's office where the property is located. This needs to be done within 90 days from the completion of the entire project. Although, before filing the lien claim itself, we recommend sending a Notice of Intent to Lien, as a final warning shot before filing against the property. This is typically enough to induce payment as property owners will want to avoid liens as much as possible. For additional information: check out our How to File a Tennessee Mechanics Lien article, or feel free to post another question here. Good luck!  
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Dec 18, 2019
Good to know that I may be able to file the lien based on the classification of the property itself. However, I see that I have to file the lien within "90 days of completion of the entire project." The owners have written me about leaks to some of the custom items, that the items do not pass code per the chief inspector, states that the items are not complete and have requested that I come remove the "defective" items from their property so a different sub can come in and install new ones that are third party certified. Can I still proceed with filing the lien if they are making such claims and I do not want to return to collect said items?
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Dec 18, 2019
Although these claims are ongoing, a mechanics lien may still be filed, as presumably you have still provided labor and materials that exceed the value of the specific materials in dispute. As far as not returning to collect the "defective" items, this may limit the mechanics lien claim if the dispute ends up in an enforcement action in court. The owner will likely request that the court offset the costs of removing and replacing said items, and there's no telling how much the replacement contractor will charge!
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