Lien Law Review For the Top 6 Construction Boom States

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lien law review - 6 construction boom states

In today’s economy, we’re seeing the construction industry booming across the country. From building new houses to renovating old ones, growing businesses needing new commercial spaces, and manufacturing facilities expanding, there are plenty of construction jobs in every state. In particular, these six states are booming, so as you’re looking at new potential projects, make sure to read this lien law review of details to pay attention to in each state.

New York

The state of New York requires that many different types of construction professionals have a license before they can file a mechanics lien on a piece of property. Before commencing work in New York, you’ll want to file for the appropriate professional license and make sure, whatever your profession, that you’re authorized to do business in the state.

Nevada

As long as you provided more than $500 in appropriately licensed labor or materials that are actually used on the site to a Nevada project, you have the right to file a mechanics lien. However, the deadline to file a lien in Nevada is quick, just 90 days after you last provided labor or materials or 40 days after a notice of completion is filed. Further, you have to send a notice of intent to lien on residential projects 15 days in advance. What makes Nevada different from other states, though, is that there is some ability to collect fees when following up a mechanics lien with a collection action.

California

In order to file a valid mechanics lien in California, you must first file a preliminary notice. Ideally, this is sent within 20 days of starting work on the project, but can be sent late and cover only the 20 previous days of labor and materials. The deadline to file the lien, however, doesn’t start until the entire project is complete and the deadline to start foreclosure is only 90 days after the lien is filed.

Texas

Working on construction projects in the big state of Texas means paying attention to a variety of deadlines, from sending preliminary notice, if required, by the 15th day of your second or third month on a project (depending on project type) to filing the lien on the 15th day after the fourth month after an invoice remains unpaid. Texas doesn’t require appropriate licensing for a valid mechanics lien claim, though of course it’s still a good idea to hold the proper state licenses.

Florida

The first step in Florida of protecting your right to file a mechanics lien is filing the strictly required Notice to Owner unless you’re a design professional or a wage laborer. This notice goes not only to the property owner, but any general contractor or subcontractor above you in the contracting chain. You should also pay attention to the deadlines after filing a mechanics lien since there are certain steps, such as filing a complaint, that the owner can take to shorten the timeframe for you to start your foreclosure action.

Arizona

Like every state, Arizona has its own set of deadlines that should be identified and followed on every project. However, there are a few other quirks of Arizona lien law we should review. Mechanics liens can only be filed by parties with a written contract with the owner or occupier of the property and the suppliers to the suppliers are not entitled to lien protection at all. For design professionals, there must either be a written contract with the owner or a written or oral contract with the architect hired by the owner.

Working across state lines means dealing with liens in different jurisdictions. Setting up your system to handle these timelines is an important first step of your growth. You’ll also want to work with construction counsel who has experience in all 50 states so you can be sure you’re not missing any important details. Reach out to the team at National Lien & Bond to schedule one of our lien seminars where we can talk to you about the specific states you’re working in and give you a review of the lien law that most impacts your company.

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This blog is for educational purposes only and not intended for legal advice.