Menu
Home>Levelset Community>Legal Help>Liens on multi family properties, apartments.

Liens on multi family properties, apartments.

VirginiaLien Deadlines

Navi, from Virginia. I’ve been performing work on an apartment complex and would like to be informed on deadlines for liens. The project is extensive and we have remodeled multiple units. After completing work in one apartment we send an invoice for each apartment. My question is, if we continue to remodel units, would my deadline be after each invoice sent? Or does my deadline begin on the date of my last invoice? Some of our initial invoices have not been paid and they claim they are waiting for insurance claims to go through. We would hate to miss an opportunity to exercise our lien rights for being to ambitious. We have invested and are still investing heavily in labor and material and have exhausted our funds with only marginal returns. Thank you for any information that might help me.

1 reply

Feb 11, 2020
Generally, the deadline for filing a Virginia mechanics lien will be 90 days from the last day of the month when the claimant furnished labor or materials to the project - and the lien must also be filed within 90 days from the completion or termination of the job. So, minor work, punch list work, etc. won't extend the deadline. There are some other deadline complications worth keeping in mind, too, and you can read about those here: When is the deadline to file a Virginia Mechanics Lien? And, as I'll explain below, one of those complications will be worth keeping a special eye on.

Virginia has unique mechanics lien deadline complications

As a general matter, deadlines won't officially be affected by the fact that a Virginia project has a certain type. For the most part, as mentioned above, the deadline to lien is based off of last furnishing to the project/completion of the project. So, if the overall project/contract encompasses multiple units, then last furnishing or project completion wouldn't occur until all that work was done. Notably, though, a Virginia mechanics lien can only include amounts for labor or materials that have been provided within 150 days of the lien filing. And, if necessary, multiple liens can be pursued to accommodate the work schedule. However, because it's entirely possible that work on a large, multi-unit job could extend well beyond 150 days, it's important to keep an eye on how old invoices are getting. If any given invoice runs past 150 days, then those old amounts can't be included in a lien claim later on.

Prevent the need for liens by taking a proactive approach

It's important to fully understand lien rights and deadlines on a job. Without that understanding, it'd be hard for a potential claimant to set up a lien or collections policy. However, keep in mind that there are some solid steps that can be taken to prevent the need for a lien filing.

Sending preliminary notice

Preliminary notice can help to ward off payment disputes from the very start of the job by increasing transparency and communication on the job. And, notice will be required on many Virginia jobs.

Regular payment reminders for overdue bills

If invoices are outstanding but unpaid, sending an invoice reminder can be an easy way to try and collect payment. An invoice reminder will gently remind a customer that payment must be made without escalating the matter too far.

Demand letters can create urgency

Sending a demand letter will escalate the situation, but that can be helpful for forcing payment. Demand letters typically set hard deadlines for payment and threaten legal action if payment isn't made.

Threatening to file a mechanics lien

Sending a document like a Notice of Intent to Lien will let the customer know you're serious about getting paid and that you're willing to do what it takes to make sure that happens. Considering the nightmare that mechanics liens can create on a construction project, the mere potential of a lien filing will often be almost as effective as a lien claim, itself.
0 people found this helpful
Helpful