Sending a Maryland preliminary notice is an effective way to speed up payment on a construction project. A preliminary notice is an informational document typically sent to the property owner near the beginning of a construction project. Here's what you need to know about the rules and requirements for sending preliminary notice in Maryland.
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Notice of intent to lien
Maryland preliminary notice requirements for:
General contractors are not required to send notice on private projects.
General contractors are not required to send notice on public projects.
Since GCs will not make a claim against their own bond for non-payment, they do not have bond claim rights, and have no preliminary notice requirement.
Subcontractors and suppliers are not required to send a preliminary notice on private projects to protect their lien rights.
If you're sending preliminary notices in Maryland, it's important to understand the rules and requirements in order to make sure your notice is sufficient and compliant. Since prelims are subject to a lot of complex rules and requirements, this can all be difficult. And, Maryland is tough on notice. These are some frequently asked questions about the notice process in Maryland.
Who needs to send a Maryland preliminary notice on private projects?
Maryland does not require a preliminary notice to be sent at the outset of a construction project to secure lien rights. However, any party may send a preliminary notice to promote project visibility, open channels for communication, and attempt to facilitate payment.
When do I need to send a Maryland preliminary notice?
Since preliminary notices aren’t required, there is no specific timeline to send notice. However, if you do decide to send a preliminary notice there earlier the better. Increasing visibility and communication at the outset of the project can help speed up payments.
Who do I need to send a Maryland preliminary notice to?
Preliminary notices are traditionally sent to the property owner. However, if you decide to send a preliminary notice, it’s best practice to send a copy to everyone up the payment chain; such as your hiring party and the prime/general contractor as well.
Who needs to send a Maryland preliminary notice on public projects?
Maryland does not require any preliminary notice to preserve a claimant’s right to make a claim against a payment bond on public projects. However, it’s a good idea to request a copy of the payment bond to verify the existence of the bond and ensure there aren’t any other notice requirements.
I would be happy to assist you in this regard, pending a conflicts-check. A large part of our practice is mechanic's lien litigation, and we are located in Montgomery County a stone's throw from Silver Spring. Please feel free to contact me in the morning at (410) 499-2615.
Can I amend the claim amount in my Notice of Intention to Lien if I am still within the 120 days to file?
While a new notice does in a sense "replace" the old notice, it may well be better form to issue an "amended Notice" in order that you do not have to conflicting notices which are both signed under oath.
While you are free to file bankruptcy, the mechanic's lien will function as a secured lien against the property, to be paid first out of the bankrputcy estate (or, if there is a mortgage which predates the mechanic's lien, after the morgator is paid).
In Maryland, like in many states, preliminary notices are not required for general contractors or other parties with a direct contractual relationship with the property owner. Maryland does, however, require preliminary notice from subcontractors, suppliers, and others who did not directly contract with the property owner. This notice is kind of more similar to a notice of intent than a traditional preliminary notice since it must be sent within 120 days from the date that the project participant last provided labor or supplies, and can sometimes be called a “notice of lien” despite not being an actual lien itself.
For single-family residential properties, there are some special deadline requirements. The notice must not only be sent within 120 days from the last day, the participant last provided labor or supplies but additionally prior to the property owner, making full payment to the general contractor.
It’s further important to note that liens filed on owner-occupied single-resident properties are also limited to a specific worth dependent on the contract (between the property owner and the general contractor) amount due at the time the property owners received preliminary notice. While there are many reasons that it is best to send preliminary notices early in the project, since the ultimate goal is to provide visibility into project participants, it is worth additional attention when the amount available to be secured by a lien claim depends on the amount left to be paid when notice is received. This means that while Maryland can be an unpaid balance lien state, there is a mechanism in place for subcontractors and suppliers to ensure that is not the case and to be fully protected.
First and foremost, read the guide to preliminary notices in Maryland. It breaks down all you need to know about the notice, including who must submit one, when they should submit one, and who the notice must be submitted to.
This part can get tricky because you must take care when filling your preliminary notice out. That’s because under Maryland law, mistakes on your preliminary notice could void your right to file a mechanics lien if you need to. Check your form multiple times to make sure everything is completely accurate.
Deliver the notice
Lastly, deliver your Maryland preliminary notice. Make sure you send it within the 120 day deadline, and send it to the owner via personal service or certified mail, return receipt requested.
If the owner cannot be located and served, you can post the notice on the job site in a conspicuous place as a last resort. Take a picture as proof it was properly posted.
How to send a Preliminary Notice with Levelset
Select Preliminary Notice document.
Provide basic job information.
Levelset sends the document for you. Postage included!