My clients are threading to bond around my lien. What’s are my next steps ?
3 replies
May 29, 2020
If you have properly perfected a mechanic's lien (always a big question) and the Owner/GC bonds around the lien, the next step is to file suit to foreclose the lien. You have to file suit to foreclose the lien. The bond is there to provide a source of funds to pay your claim IF you prove that the lien is valid and the court forecloses the lien. The bond is a substitute for the real property. Nothing has changed other than the property is no longer subject to foreclosure and sale. Your claim is now against the bond and the parties that failed to pay you. You still have claims for breach of contract against the party whom you contracted with that has not paid you, depending on the terms of your contract (pay if paid; pay when paid, defective work, etc.)
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May 29, 2020
Properly filed the lien ? Meaning what I feel like I filed it with you guys. So my assumption it’s properly done. Can you give me more clarification on a in proper lien?
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May 29, 2020
I do not work for Levelset. I'm an independent attorney that responds to questions on this site. What I mean is that for a mechanic's lien to be valid, there are numerous notices that must be sent to owners, general contractors, and subcontractors depending on where in the chain you fall. If you are a subcontractor, you have to give the owner and GC notice of your intent to file a lien if not paid before you actually record a lien affidavit. Also, after you record a lien affidavit, you have to serve that filed lien affidavit on the Owner and the GC within 5 days of filing. There are other requirements, but the bottom line is that before you file suit to foreclose a lien, it is important to analyze whether the lien is properly and timely filed and perfected. If you miss a deadline to give notice, the lien is not valid. If you fail to send the recorded lien affidavit to the owner and GC within 5 days of record, the lien is not valid. If you record the lien affidavit after the deadline to do so, the lien is not valid.