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How can I file a Mechanics Lien for engineering services provided after the building was sold?

I provided engineering services on a test rig located in an industrial building. I last provided services on 10/22/2019. On Nov. 20 ,2019, the property was sold, but the engineering test rig remains on the property. Can I file a Mechanics Lien on the property to get paid for my engineering services?

1 reply

Dec 13, 2019

In order for mechanics lien rights to arise, there must generally be some permanent improvement to the project property. So, it's important first to ascertain whether the work performed was done in order to provide some permanent improvement to the real estate - and, if the improvement is intended or planned on being removed from the property, or if there's otherwise no permanent improvement to the land, then a mechanics lien filing might not be the most appropriate remedy. What's more, when mechanics lien rights are appropriate, note that a Notice to Lien Agent may be required, as well. So, if there was a permanent improvement to the real estate, and if there was a lien agent assigned by the property owner, then failure to provide a Notice to Lien Agent could be fatal to a claim, too. More on that here: North Carolina Preliminary Notice Guide and FAQs. With the above being said, note that mechanics liens generally tie directly to the property which is performed, not to any particular person or business. So, typically, lien rights will carry on even when the project property is sold before a mechanics lien is filed. Levelset discusses that here: What If Your Mechanics Lien Is Filed After The Owner Sells The Property?

Options outside of the mechanics lien process

Of course, keep in mind that mechanics liens are only one way to recover payment. And, using other recovery tools can be effective, too.

Invoice reminders

For one, sending something as simple as an invoice reminder can be effective. An invoice reminder acts just like it sounds - it reminds a customer that payment is still outstanding in attempt to compel payment on the invoice.

Demand letters

Escalating things a bit with a document like a payment demand letter can be effective, too. Demand letters will let a customer know you're serious about getting paid and willing to do whatever it takes to ensure that payment is received. For more on demand letters: Demand Letters for Contractors – How To Write One That Gets You Paid.

Legal options

Of course, when unpaid on a contract, there will typically be legal recovery tools available - such as breach of contract. In order to best assess what legal claims might be available, it'd probably be helpful to consult with a local North Carolina construction attorney. They'll be able to review your circumstances and documentation then advise on how best to proceed.

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