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Do I have to have a relationship with the owner of a commercial property to file a lien tennant singed contract

I am a general contractor in ohio and have filed a mechanic's lien on the property owner. The contract I have is with his tennant and the owner states he was unaware (and very well could have been) of the project and his attorney has sent a letter asking me to voluntarily remove the lien stating that in Ohio I cannot file a lien on his property since he had no knowledge or contract for us to do the work there. Any light you can shed on this?

1 reply

May 21, 2020

Ohio mechanics liens are available on tenant improvement projects, but lien rights will generally only extend to the tenant's interest in the property (i.e. their lease). So, if the project was authorized by the tenant and not the owner, then a lien against the owner's property generally won't be available. On this front, Ohio seems to follow the general rule nationwide, which Levelset discusses here: What Happens to Mechanics Lien Rights If My Project is a Tenant Improvement? It's possible that an owner could be open to mechanics lien rights against their fee ownership if the owner was involved in the project - like if the lease required the tenant to improve the property, or if the owner was otherwise heavily involved in the job. But, generally, unless the owner's taken some active role in the project - they won't be subject to mechanics liens for projects authorized by their tenants. Regardless - liens against a leasehold can be useful. Often, that lien will put them in breach of their lease agreement, and they'll need to resolve the matter to maintain their lease at the property. Plus, even if using a lien against their lease doesn't work, there are always other payment recovery options that can be used. In addition to the above, these resources should be useful: - My Lien Was Challenged: What Do I Do? - The 4 Steps to Take After Filing a Mechanics Lien

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