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If we build a storage silo in Wisconsin and ship into Ontario Canada - and the customer does not pay their last payment can we put a lien on that silo for the amount owed?

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Sep 27, 2019

Mechanics liens are governed by and tied to the location of the project, or work of improvement. This can create challenges when there are multiple locations or specially fabricated materials or structures are built and then shipped to a different location for installation. However, since a mechanics lien claim is a claim against the property itself (not necessarily just the improvement) the lien must be filed where the property is located. A Wisconsin mechanics lien cannot be placed on a silo that is not in Wisconsin. There may be the opportunity to claim a mechanics lien or lien equivalent in Ontario where the silo is installed. Canada has it's own mechanics (or "builder's) lien laws, and in many respects they are not that different than those in the U.S. Ontario actually reformed it's builder's lien laws in 2017, but the general process is similar to making a mechanics lien claim in the U.S. A claim for lien document (standard form) must be filed with the land registry office in which the project is located, and subsequently, an action to enforce the lien must be initiated within a certain amount of time, and a certificate of action filed in the land registry office in which the lien was filed. There are also deadlines that must be met in order for the lien to be proper.

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Sep 27, 2019

Mechanics lien rights arise against real property - meaning, real estate. So, where work is done which permanently improves real estate, then mechanics lien rights may arise in that real estate if the work goes unpaid. However, because mechanics lien rights don't arise in personal property - property that can be moved - the right to file a mechanics lien won't arise when work is done and shipped elsewhere to be permanently installed. Note, though, that it's possible that mechanics lien rights could arise in the real estate where the silo ends up and is erected on. But, any potential lien right would be based on the lien laws of Ontario, not Wisconsin. And, unfortunately, I'm not familiar with Canadian lien law. Options outside of the mechanics lien process Keep in mind that a mechanics lien is only one recovery tool available - and, pursuing some other method of payment recovery could be effective. More on other payment recovery options here: Can’t File a Lien? Here Are Some Other Options For Recovery.

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Jun 21, 2022

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