Real Estate Transactions Attorney in Minneapolis, Minnesota

Contractors and Mechanics Liens

More In This Category

View Transcript

Mechanics Liens are statutory-regulated. And so – and it is inflexible, meaning it’s strict compliance. There are specific notices you have to give; font size needs to be a certain size; certain language needs to be used. The lien – pre-lien notice needs to be given in certain situations, and the lien has to be – you have to provide notice within 120 days of the last date of work, and commence an action within a year of the last date of work. So, it’s very inflexible.

What it requires is diligence. What happens, more often than not, is a contractor doesn’t want to be a bad guy or gal. You know, “I don’t want to file a lien; they’ll get upset.” The problem is, if you don’t file that lien in the first 120 days, you’re out of luck. And the Mechanics Lien allows you, most importantly, to get attorney’s fees if you win.

And so, it is – it’s about diligence, and it’s about doing it right. It’s not really that hard, but again, if you have good forms that you’ve created, you should have the pre-lien notice in your form, if you have projects that require it. And you need to dock it to make sure you act within that 120 days, ‘cause it’s – if you don’t, you’re out of luck.

So, it – Mechanics Liens are really important, but you really have to be careful and make sure you do it right.

Minneapolis business attorney Stephen Yoch of Felhaber Larson explains how Mechanics Liens can be used by contractors to get paid.

More Videos From This Lawyer