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Steps after lien is filed

Wisconsin

Hello, I am currently in a situation where I am filing a lien on a commercial property I painted. I am wondering, after the lien is put on the property, what actions are next in order for me to get compensated for the work I performed? I have been told (not by anyone reliable) that once the lien is place on the property the owner can simply not do anything as long as he doesn’t plan to sell the property. Is this true?

1 reply

Jan 11, 2021

There are a number of steps that can help lead to payment once a lien has been filed, the most important of which is making sure that the owner and any other involved parties are aware of the lien claim. Levelset discusses some of those steps here: The 4 Steps to Take After Filing a Mechanics Lien. As mentioned in that article, sending payment demand letters and even a Notice of Intent to Foreclose can be really forceful.

As for whether an owner can ignore a lien filing - unfortunately, that's not totally cut and dry. First, it's worth noting that property owners generally hate having liens filed against their property. Claims against property tend to strike a chord with owners, plus they make it hard to sell or mortgage the property until the lien is resolved. What's more, when a mechanics lien has been filed, the lien claimant can move to enforce their lien and ultimately foreclose the property. And, any property owner will want to avoid a lawsuit and potential foreclosure. More information on lien foreclosures, here: What Is “Enforcing” a Mechanics Lien? 

With all of that being said, it is possible that an owner will simply opt to wait out a lien filing to see if the mechanics lien claimant will enforce the lien by filing a lawsuit. In doing so, they're betting that the lien claimant won't pursue the lawsuit and that the lien will expire. Generally, Wisconsin mechanics liens must be enforced within 2 years - so, if more than 2 years pass and no enforcement suit is filed, then the lien will expire. So, an owner would need to wait 2 years to successfully wait-out a lien filing. And, again, a lien claimant can certainly enforce their lien within that time frame to force the owner to deal with the dispute.

If you'd like to talk out the situation with a Wisconsin construction attorney, one of these lawyers may be able t help: Top Wisconsin Construction Lawyers.

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