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VirginiaMechanics Lien

how does an owner dispute the lien claim if given notice?

2 replies

Jul 23, 2021

This will be a long answer (relatively). There are three possible responses:

1. You can file suit to get the lien invalidated. This is a Circuit Court action in which you would present any defenses to the lien (improper filing, not valid because GC has been paid, etc.) and depending on the defenses can take as long and be as expensive as a suit to enforce.

2. You can place a bond or cash collateral with the Court and have the lien released that way. While this ties up some cash, it is the quickest way to get a lien released. You would then see if the GC sues to enforce its rights against that collateral. If the GC did so, you would present the same defenses that you could have presented in Option 1.

3. These first two involve attorneys and lawsuits in Circuit Court. The third option is to simply wait 6 months and see if the GC sues to enforce the lien. If you do not plan to refinance or sell the property in that timeframe, the lien will sit there and will become dead letter after 6 months.

 

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Jul 26, 2021
The Virginia Code has a specific provision allowing the Owner or anyone with an interest in the liened property to petition the Court to hold a hearing on the validity of the lien. Typical challenges involve inaccuracies in the description of the land against which the lien is filed, lack of licensure by the contractor filing the lien, misidentification of parties, late filing, or violation of the 150-day lookback provision (the lien memorandum cannot include any sums for work done more than 150 days prior to the date of filing, with the exception of retainage—so a lien that includes amounts for a disputed change order request that is more than 150 days old can invalidate a lien)..
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