5 THINGS TO KNOW ABOUT TENNESSEE MECHANICS LIEN LAW

It’s not always easy to receive the gold you’ve earned in the Butternut State. Tennessee, like all other states, has mechanics lien laws to help construction workers and suppliers like you get paid. Like all other states, Tennessee mechanics lien and Tennessee construction lien laws are also confusing and complicated. So you need to know how the law works to be able to properly file a Tennessee lien and protect your right to be paid. Here are 5 things you need to know about the Tennessee lien laws as reported to NLB busy our network of Tennessee construction attorneys and Tennessee construction lawyers to successfully file your next lien.

Quick Answer
Five critical facts about Tennessee mechanics lien law under T.C.A. §§ 66-11-101 to 66-11-208: (1) sub-tier claimants must serve NOTICE OF NONPAYMENT (NON) on the owner within 90 DAYS of last furnishing under T.C.A. § 66-11-145; (2) Notice of Lien must be recorded within 90 DAYS of completion under § 66-11-117; (3) foreclosure suit within ONE YEAR of last furnishing under § 66-11-126; (4) Tennessee's prime contractor's lien attaches at first furnishing — sub-tier liens attach after Notice of Nonpayment; (5) attorney's fees recoverable to prevailing party under § 66-11-141.

WHO CAN FILE A TENNESSEE MECHANICS LIEN

Generally, every state has laws that limit who can file a mechanics lien and a payment bond claim, and Tennessee liens are not the same to perfect. You need to know how and when to take the required steps. The pre-lien or preliminary notice requirements are different for each state on Private, Public, and Federal Projects. When you send the notice to the owner, preliminary notice, or pre-lien notices are also different for a supplier, sub, GC, or design professional.  

SCHEDULE A NO-COST INITIAL CALL WITH NLB’S GENERAL COUNSEL TO GET STARTED

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NOTICE OF RIGHT TO LIEN

Your first step in protecting your lien rights is typically to serve notice of your right to file a mechanic’s lien, often referred to as the “Preliminary Notice”. It must be served on the owner and the general contractor. Unless you are working directly for the general contractor. If the owner obtained a loan to fund the project, you must also serve the notice to the construction lender. The Preliminary Notice timing shown is not always mandatory but will afford maximum protection for liens.

This notice may be served when you begin supplying materials to the project. If you miss the statutory date, you may in some states still serve the notice to capture remaining funds as state law typically bit not always provides. Notice (Statutory Form) to owner, contractor, construction lender & person with whom the claimant has contracted within a date certain from the time you began work, or in some times before you start and in others when you completed work.

The notice may either be served by certified mail, return receipt requested, or personally served on each of the parties. If you file a lien, you need to provide proof of this service by affidavit and proof of mail delivery. The notice typically includes a description of the work or goods you will provide, the estimated total price of the work or goods you will provide, and the statutorily required statement.

PREPARING THE TENNESSEE MECHANICS LIEN

Every mechanics lien typically must contain the owner’s name, a general description of the property and location, the name of the hiring party, the first and last date of work a description of the work performed, and the amount of money owed. The lien may also include other statutorily required statements and best practices require a lien to be prepared by a lawyer in the project state.

FILING AND SERVING THE TENNESSEE MECHANICS LIEN

According to the mechanics lien law, after your notices are served timely the lien must be filed in the county recorder’s office in the county where the property is located. The lien may either be served by certified mail, return receipt requested, or personally served on each of the parties. If you file a lien, you may in several states need to provide proof of this service by affidavit and proof of mail delivery.

FINAL THOUGHTS

Even if circumstances change, it is never too late to start a dialogue with the owner and GC Click Here to set up an appointment with general counsel to discuss the details of your initial consultation. If you properly perfected all the required steps you can likely start a foreclose action on the lien, sue the surety on a bond or sue for collection and other remedies. Property owners and competing creditors may try to block your path, but if you followed the law, you will have placed yourself in a strong secured position against your adversaries. To learn how to secure all your receivables Click Here to set up an appointment with general counsel to discuss the details of securing your company’s entire receivables on private public and federal construction projects both in the USA or around the world.

Frequently Asked Questions

Does Tennessee require a preliminary notice before filing a mechanics lien?

Yes for sub-tier claimants — under T.C.A. § 66-11-145, sub-tier claimants must serve a NOTICE OF NONPAYMENT on the property owner within 90 DAYS after the date the claimant last furnished labor or materials to the project. The Notice of Nonpayment establishes the sub-tier claimant's lien rights (which do not attach automatically as for direct contractors). Failure to serve the Notice of Nonpayment within 90 days bars sub-tier lien rights. Direct contractors in privity with the owner have lien rights that attach at first furnishing.

What is the deadline to file a Tennessee mechanics lien?

Under T.C.A. § 66-11-117, the Notice of Lien must be recorded with the Register of Deeds in the county where the property is located within 90 DAYS after the date of completion of the work of improvement. The 90-day deadline runs from completion of the entire work, not from individual material deliveries. Missing the deadline permanently bars the lien.

What is the deadline to file a Tennessee mechanics lien foreclosure suit?

Under T.C.A. § 66-11-126, the foreclosure action on a Tennessee mechanics lien must be commenced within ONE YEAR after the date the claimant last furnished labor or materials. The 1-year window runs from LAST FURNISHING, not from filing of the Notice of Lien — meaning extended settlement negotiations after filing can risk the deadline. The deadline is a strict statute of limitations that cannot be tolled.

Are attorney's fees recoverable on Tennessee mechanics lien claims?

Yes — T.C.A. § 66-11-141 provides that prevailing parties on Tennessee mechanics lien actions may recover reasonable attorney's fees and costs. This fee-shifting is one of the stronger provisions in the Southeast and creates significant settlement leverage for properly-documented liens. The fee-shifting cuts both ways: frivolous claims expose the claimant to fee liability.

What is the Tennessee Notice of Nonpayment?

Under T.C.A. § 66-11-145, sub-tier claimants must serve a Notice of Nonpayment on the property owner within 90 DAYS after the date the claimant last furnished labor or materials. The Notice of Nonpayment establishes sub-tier lien rights (sub-tier liens do not attach automatically as for direct contractors). The notice must identify: (1) the claimant; (2) the property; (3) the amount owed; (4) the party who hired the claimant; (5) the dates of first and last furnishing. Defective Notices of Nonpayment may bar lien rights.

What contents are required on a Tennessee Notice of Lien?

Under T.C.A. § 66-11-117, the Notice of Lien must contain: (1) the amount claimed; (2) the name of the owner; (3) the name of the party who employed or hired the claimant; (4) a description of the property sufficient for identification; (5) the dates of first and last furnishing; (6) a description of the labor or materials furnished; (7) verification by the claimant under oath. Defective Notices of Lien missing required contents are unenforceable under Tennessee law.

How does National Lien & Bond help with Tennessee mechanics liens?

National Lien & Bond files Tennessee mechanics liens for unpaid contractors, subcontractors, suppliers, and equipment lessors. For Illinois-based engagements, Hal Emalfarb's firm at Emalfarb Swan and Bain handles strategic coordination. For Tennessee-jurisdiction matters, NLB connects unpaid contractors with vetted Tennessee construction-payment attorneys who handle the 90-day Notice of Nonpayment service under T.C.A. § 66-11-145, the 90-day Notice of Lien filing under § 66-11-117, and the 1-year foreclosure suit under § 66-11-126. NLB's 50-state deadline-tracking system prevents the missed-deadline forfeitures that cause most Tennessee lien losses. Contact NLB for a free initial consultation.