Do I still have lien rights?

3 weeks ago

Would a company have lien rights if the NTO was sent timely but the property sold before a lien was filed and has new owners?

Senior Legal Associate Levelset

Generally, mechanics lien rights run with the project property – not against any one individual. So, if a claimant has performed work on a property and preserved their right to lien, they’ll typically be entitled to file a mechanics lien even if the project property is sold before a claim can be filed. Levelset discusses that here: What Happens If I Filed My Mechanics Lien After the Property Was Sold?

Of course, there are recovery tools that can be helpful for getting paid without having to resort to an actual lien filing. In fact, merely threatening to pursue a mechanics lien – with a document like a Notice of Intent to Lien – is often enough to get paid. By sending a Notice of Intent to both the seller and the purchaser of the property, as well as the project’s general contractor, it can put pressure on both parties to resolve the issue before the dispute becomes more serious. More on that here: What Is a Notice of Intent to Lien and Should You Send One?

Further, less official recovery tools – like sending a simple invoice reminder or payment demand letter to a customer – might also be helpful in recovering payment.

Additional Florida mechanics lien resources

Finally, here are some additional mechanics resources that should be valuable:

– Florida Mechanics Lien Guide and FAQs
– How to File A Florida Mechanics Lien – Step By Step Guide To Get You Paid

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Attorney Nelson Mullins Broad and Cassel

Yes! I have actually dealt with the scenario for a client, and your lien should be valid despite the ownership change. You should consult with an attorney to confirm that though and make sure there’s not some unique fact that changes the answer.

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