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5 steps to take when facing a mechanic’s lien

On Behalf of | Oct 12, 2023 | Construction Litigation |

A mechanic’s lien can be a daunting issue for homeowners, but there are proactive steps to take when dealing with this situation.

When a contractor files a mechanic’s lien against your property, address the matter promptly and decisively to protect your interests.

1. Review the lien notice

The first step is to carefully review the lien notice. Ensure it is complete and accurate, including the contractor’s name, the amount claimed and the property description. If there are discrepancies, document them for future reference.

2. Communicate with the contractor

Establish a channel of communication with the contractor, initiating a request for an itemized bill or invoice to gain insight into the foundation of their claim. Courteous and transparent exchanges can frequently pave the way for a resolution that avoids exacerbating the circumstances.

3. Mediation or negotiation

Consider mediation or negotiation as a means to settle the dispute. Engage in discussions with the contractor to explore a mutually agreeable solution. This can help avoid the legal complexities that may arise if the matter remains unresolved.

4. Request documentation

Ask the contractor for all relevant documents, such as contracts, work orders, receipts and any other paperwork related to the project. Having a comprehensive understanding of the project’s scope and agreed-upon terms is valuable in resolving the dispute.

5. File a bond

In some cases, you can file a bond with the court to release the lien from your property temporarily. This action is a legal way to protect your property’s title while the dispute is ongoing. Be sure to follow your local jurisdiction’s rules and regulations.

In 2020, mechanic’s lien rose by 40%, creating unexpected legal challenges for many homeowners and other contractors. By taking a proactive approach, homeowners can navigate the issue effectively and protect their property rights.