Common Mechanics Lien Mistakes


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The term "mechanics lien" can get thrown around on a construction project, and sometimes, contractors and suppliers need the remedy badly to avoid a default account. The lien laws can be hyper-complex, however, which means its easy to make mistakes.

This presentation goes through some of the most common mistakes made with mechanics lien claims.

It is presented by zlien, the industry's leading platform for mechanics lien and bond claim management, which is used to file thousands of lien claims each year.

Published in: Business, Technology
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Common Mechanics Lien Mistakes

  1. 1. Common Lien Mistakes
  2. 2. Mistake #1 center of the world syndrome
  3. 3. Mistake #1 center of the world syndromeyou’re probably wrong
  4. 4. Mistake #1 center of the world syndrome “I’ve dealt with liens before, I know the law.” “I’ve filed tons of liens and never have any problems.” “I’m going to follow Florida’s rules everywhere because it is the most strict.”
  5. 5. Mistake #1 center of the world syndrome Mechanics lien rumors are not mechanics lien laws.
  6. 6. Lien Deadline Calculation Rules Private Projects
  7. 7. Bond Deadline Calculation Rules State Projects
  8. 8. Notice Requirements Private Projects
  9. 9. Lien Waivers Allowed / Prohibited In Contract
  10. 10. Mistake #1 center of the world syndrome This mistakes results in you missing notice requirements, filing your lien late, filing without rights, and more.
  11. 11. Mistake #2 details, details, details
  12. 12. Mistake #2 details, details, details Used in Lien: A&L Construction Corp. Formal Name: A. & L. Construction Corp. 12
  13. 13. Mistake #2 details, details, details Georgia mechanics lien notice said “365 days” instead of “395 days.”
  14. 14. Mistake #2 details, details, details Waiting until the last minute and forgetting about: — Recorder delay — Unpaid balance states — Murphy’s Law
  15. 15. Mistake #3 property descriptions
  16. 16. Mistake #3 property descriptions How you identify the project is really, really important, and most states have heightened requirements.
  17. 17. Mistake #3 property descriptions 123 Main Street Seattle, WA 98134 Subdivision: Breatheway Range: 105 Lot: 66 County: King Square: 4-A
  18. 18. Mistake #4 your right to lien
  19. 19. Mistake #4 your right to lien Not licensed? You may be working for free. Yes, that means you can’t lien either.
  20. 20. Notice Requirements Private Projects Mistake #4 your right to lien
  21. 21. Mistake #5 being greedy
  22. 22. Interest, attorney fees, filing fees, penalties, etc. You can collect in litigation, but (usually) not in the lien Mistake #5 being greedy
  23. 23.
  24. 24. Exaggerated liens are not only invalid, but they could result in sanctions, or, in worse case scenarios, criminal charges. Mistake #5 being greedy
  25. 25. 1. You’re probably wrong 2. Details, details, details 3. Legal descriptions 4. Do you have a right? 5. Don’t be greedy Mistake Review
  26. 26. • 2 Emails Per Week For 6 Weeks • Credit & Collection Policy Tips • How Successful Credit Professionals Increase Revenue And Decrease Risk Free! Click to Take The Course Learn More About This Problem