Home>Levelset Community>Legal Help>Exceptions to Lien Rights in certain states

Exceptions to Lien Rights in certain states

We need to determine which states provide that full payment by the property owner (to the GC) is a defense to a lien. I know some states have codified that; others have not. We’d like to have a comprehensive list, state-by-state, that spells it out. In addition, does the defense apply to all liens (commercial and residential) or just residential projects. Again, I know that, in some states (Pa. is an example), the defense is only available for residential jobs.

1 reply

Feb 28, 2020

States are generally classified as "full price" or "unpaid balance" lien states. In "full price" lien states, mechanics lien claimants will generally be able to file a mechanics lien claim regardless of what the higher-tiered parties on the job have been paid. And, in "unpaid balance" states, claimants will generally be restricted to the amounts that are owed and unpaid to the project's GC or the claimant's customer. For a breakdown of which states fall into which category, this article should provide a lot of insight: Full Price Lien or Unpaid Balance? But, as you mentioned above, the lien amount available will vary on a wide number of factors, including, potentially, project type and the lien claimant's tier. Unfortunately, I'm not able to immediately provide a breakdown for each project type in all 50 states. Still, the above guide should provide a strong starting point.

0 people found this helpful

Helpful