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Does an undisclosed residential (non owner-occupied) subcontractor have valid lien rights?

TennesseeLien DeadlinesMonthly NoticeRight to Lien

I bought a house in Tennessee that is being renovated before my daughter can move in. I do not live in Tennessee. I retained a contractor to perform certain limited pre-renovation services. I paid that contractor’s bill. I have since learned that, without my knowledge or consent, the contractor sub-contracted with another entity to perform part of the work. I learned about that when I received a Notice of Non-Payment letter dated 90 days after the last day of the month that the subcontractor’s work was done. Although the property is non owner-occupied, can the subcontractor file a legitimate mechanic’s lien? Thanks.

2 replies

Jul 17, 2020
Subcontractors on Tennessee construction projects are entitled to mechanics lien rights unless the project they're working on is an owner-occupied residential project. When an owner doesn't live at the property and doesn't intend to reside there, then the project won't be considered an owner-occupied residential real property - so, subcontractors will generally be entitled to file lien claims if they go unpaid for their work. Part of that process is sending a Notice of Nonpayment when they've gone unpaid for their work. If you're receiving Notices of Nonpayment from a subcontractor, then the first step should typically be to contact that subcontractor's customer (the contractor who hired them) to have them resolve the issue. If that contractor refuses to pay their sub or otherwise handle the situation, then threatening to pursue legal claims against them if a lien gets filed might remind the contractor that a claim against the property is very much their problem, too. Finally, note that the Tennessee mechanics lien statute limits the price of all liens to the contract price and extras in the contract between the owner and the prime contractor. Though, that may just be putting a cap on the total amount that's lienable - and full payment to the contractor might not always block lien claims. For more clarity on your mechanics lien exposure and how to navigate payment disputes on your project, it might be useful to consult with a Tennessee construction lawyer, and you can begin that search here: Find a Tennessee Construction Lawyer. Additionally, while a Notice of Nonpayment isn't necessarily a mechanics lien threat, these articles might be useful to understand potential outcomes: (1) I Just Received a Notice of Intent to Lien – What Should I Do Now?; and (2) A Mechanics Lien Was Filed on My Property – What Do I Do Now?
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Jul 17, 2020
Does the sub have to send a 1)Notice of Lien and 2) file the lien within a particular deadline? Thanks.
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