Home>Levelset Community>Legal Help>If an owner basically pays a bill or two out of 13 or so of the total invoices is the mechanics lien void due to the amount being incorrect? Once the 120days passes if over 1000$ they can no longer file a lien?

If an owner basically pays a bill or two out of 13 or so of the total invoices is the mechanics lien void due to the amount being incorrect? Once the 120days passes if over 1000$ they can no longer file a lien?

If an owner basically pays a bill or two out of 13 or so of the total invoices is the mechanics lien void due to the amount being incorrect? Once the 120days passes if over 1000$ they can no longer file a lien? I'm in a project where the total left owed is around 59k but split between 12-15 subcontractors and dont want to get totally screwed over. If I file a lien for 59k and they pay a bill or two here and there between the stoppage date and the 120day window my claim to file is void if I understand the verbiage correctly due to the total being incorrect. Is this,in fact, true?

1 reply

Sep 17, 2019

First, if a mechanics lien is valid at the time it's filed, an owner making partial payments won't automatically invalidate the lien due to an improper amount. Now, it might be in the claimant's best interest to try and reduce or amend their claim of lien if partial payment is made (if there's time and if it's allowed), but an owner can't simply make a partial payment then rely on that to invalidate the remainder of a mechanics lien claim filed against the property. More on that idea here - Mechanics Liens and Partial Payment: What Are the Options? Regarding the $1,000 discrepancy... The $1,000 mark will affect when and whether a Notice to Owner must be sent in Kentucky. Note, though, that a Notice to Owner will only ever be required of parties hired by someone other than the property owner. So, for parties hired by the owner, a Notice to Owner won't be required. Further note that the $1,000 refers to the contract price, not to the amount that's owed and unpaid. Notice to Owner requirements In Kentucky, for projects that are on owner-occupied residential property, and for all projects where the unpaid amount does not exceed $1,000, a Notice to Owner must be filed within 75 days of last furnishing labor or material to the project. For all other projects, a Notice to Owner must be filed within 120 days of last furnishing labor or materials. But, if there's any doubt as to when the Notice to Owner should be filed, it's typically a good idea to file it sooner, rather than later. If a Notice to Owner is filed within 75 days, then that notice would also be filed within the later 120-day deadline. What's more, it's worth noting that paying down a debt simply to invalidate notice would likely not be successful, either. If the amount owed but unpaid exceeds $1,000 at 75 days past the last furnishing date, presumably, an owner cannot then diminish the amount owed simply to render it impossible to properly file a Notice to Owner. But again, if the Notice to Owner is filed sooner than later, that issue will very likely not come up.

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