We have several liens in FL that we are discussing with an attorney. they mentioned that there is a different lien for Staged material vs. Delivered material. Can you help us to understand the difference in the language of the lien
1 reply
Dec 16, 2019
It sounds like you may be referring to what's known as a UCC lien, which suppliers may be able to secure on the materials they provide to customers.
What is a UCC lien?
While mechanics liens are one type of security interest, there are a number of other types of liens - judgment liens, automotive liens, UCC liens, and more. UCC liens are filed, much like mechanics liens, and they create a security interest on certain property until payment is made, which is also similar to mechanics liens. And, UCC liens are available in every state - they're not a feature specific to Florida law.
How do UCC liens differ from mechanics liens?
There are some key differences between UCC liens and mechanics liens. For one, UCC liens are on movable property rather than on the project property/real estate. So, while a mechanics lien for materials incorporated into the project would attach to the entirety of the project property, a UCC lien would actually only tie directly to the materials delivered by the party filing the UCC lien.
Another difference, as a result of the above, is that UCC liens don't bind any third party to make payment and don't put external pressure on the customer to make payment. When a mechanics lien is filed and attaches to the project property, that means the owner is also brought into the dispute along with the customer who orders materials. As a result, that provides one more party who might ultimately make payment, and it creates additional pressure for a customer as a result since an owner will typically push that customer to make payment.
Finally, one more difference is that UCC liens are derived from the Universal Commercial Code (which applies to material supply contracts in just about every state) and those liens are consensual. Meaning, for a UCC lien to arise, the debtor and creditor must agree to allow the lien claim to attach to the project materials. Mechanics liens, on the other hand, come directly from state-specific legislation (such as Florida's mechanics lien statute) and arise involuntarily - a project owner doesn't need to agree to a lien in order to have one arise on their property.