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If the property has two separate sides (parcels), but is operated as one place do I need to file two liens?

I have worked on this property for three + years, however in the last few months they haven't been paying us and the property is supposed to close on December 27, 2018 and I am concerned that we will not have enough time before closings. If the closing happens before they are property notified who becomes responsible for the unpaid invoices<

1 reply

Dec 5, 2018

These are good questions. First, it's worth noting that a mechanics lien filing will make it a lot harder for the owner of the property to sell or take a loan against the real estate. So, in a situation where the project property is soon to be sold, liening the property - or even just threatening to lien the property - can be very effective in compelling payment. Often, when a potential claimant sends a warning like a Notice of Intent to Lien, the property owner will be more ready to talk deal in order to avoid the potential for a lien filing. Regarding multiple parcels, as a general rule, the safest way to proceed is typically to file a separate mechanics lien on each parcel where work was performed. This may be a little conservative, and filing one lien on multiple parcels might be possible, but filing separate liens is typically the safest way to proceed. Regarding the sale of property, it's typically a good idea to file a lien prior to a transfer of the property, because even where a lien filed after the sale might be possible, trying to recover from an owner who did not authorize the work could be a struggle. Plus, any leverage created by the prospective sale of the property could be lost. Further, under § 44-14-361.2(a)(2)(A) of Georgia's lien statute, if, in conjunction with the sale of property, an owner provides a sworn written statement that payment has been made or provides a sworn written statement that lien rights have been waived, lien rights will be dissolved. For the above reasons, when the sale of a property is looming and work on that property has gone unpaid, it's a very good idea to make sure payment comes before such a sale - plus, the threat of lien or an actual lien filing will never have more leverage than it does with an impending sale of the property. For more on Georgia's lien and notice rights, the following resources might be helpful: Georgia Lien and Notice FAQs and How to File a Georgia Lien.

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