How should I start a lien procedure?

7 days ago

I lent $5000.00 to a general contractor for a period of 6 months (Feb – August 2019). The rate of return was 12% = $600.00. I feel the contactor is at best stalling. I worst I’m worried I lost my investment. I also google earthed the address he gave me 105 Folly Mills Road Salisbury, MA. the lot looks empty compared to the foundation pictures he sent me back in July. How should I approach a lien situation?

Senior Legal Associate Levelset

Mechanics lien rights are generally available to those who perform construction-related work, but go unpaid for the work they perform. And, in order to have mechanics lien rights, the lien claimant must have generally made some contribution (be that labor, materials, skills, etc.) to the permanent, physical improvement of the project property. So, typically, services like lending to a GC won’t give rise to mechanics lien rights. Granted, when situations like factoring come into play, things become a little less clear – and it’s entirely possible that mechanics lien rights might be appropriate.

With that being said, Levelset has two great resources that should provide a lot of guidance here: (1) How to File a Massachusetts Mechanics Lien – A Practical Guide; and (2) Massachusetts Mechanics Lien Guide and FAQs.

If you do determine that mechanics lien rights aren’t the best fit for your situation, keep in mind that there are always other options that can help force payment: Can’t File a Lien? Here Are Some Other Options For Recovery.

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