We’re in Tennessee and would like to know if we can lien a property that is owned by investors and the build is run by a GC. It is a residential tract of single family homes. We have issued a preliminary already with no luck.
1 reply
Sep 30, 2019
Tennessee mechanics lien rights are pretty expansive. These rights are limited a bit when work is being done on owner-occupied residential properties. However, in a situation where several separate residential properties are owned by the same developer or investors - the limitations for owner-occupied residential jobs seemingly wouldn't apply.
With that in mind: Contractors, subs, laborers, suppliers, equipment renters, and even some design professionals will be entitled to file a mechanics lien in Tennessee if they go unpaid for their work.
Keep in mind, though - there are certain notice requirements which must be followed. For background on those notice requirements, here's an excellent resource: Tennessee Preliminary Notice Guide and FAQs.
Obtaining payment without a mechanics lien filing
Certainly, some disputes will require a mechanics lien filing in order to force payment. However, a lighter touch may do the trick for many jobs. Sending something a little less formal - like an invoice reminder or a demand letter might grease the wheels toward payment.
Even in a situation where a customer or owner doesn't want to play ball, the mere threat of a mechanics lien can be enough to get paid. Sending a document like a Notice of Intent to Lien can act like a warning shot - it informs recipients that the claimant is serious about getting paid, and it lets them know that a mechanics lien will be filed, if necessary. Plus, if it's ineffective, a claimant can still move forward with their lien. More on recovery via Notice of Intent here: What Is a Notice of Intent to Lien and Should You Send One?Filing a Tennessee mechanics lien
If a lien filing does become necessary, here are some tools that should really help navigate the process:
(1) Tennessee Mechanics Lien Guide and FAQs(2) How to File a Tennessee Mechanics Lien