Property Owners and Mechanics Liens | Wendel, Rosen, Black & Dean LLP

Here's the property-owner's portion of Garret Murai's handy and recommended article on Mechanics Liens:

If you are the property owner is there anything you can do to release property from a mechanic’s lien?

Yes, several things. First, if a lawsuit is not filed to foreclose on a mechanics lien within 90 days after the mechanics lien is recorded or 1 year after the project is completed, the mechanics lien is considered “stale,” and you can file a petition with the court to have the mechanics lien expunged. You can recover all reasonable attorneys fees incurred in expunging a “stale” mechanics lien.

Second, if a mechanics lien is not “stale,” you can obtain a mechanics lien release bond. A mechanics lien release bond releases the mechanics lien, and the mechanics lien claimant then has to make a claim against the release bond. A mechanics lien release bond must be in an amount equal to 125% of the amount claimed in the mechanics lien and premiums are typically 2-3% of the total bond amount.

Third, you can negotiate a settlement with the mechanics lien claimant in exchange for the mechanics lien claimant recording a release of its mechanics lien.

The Mechanics of Mechanics Liens | Wendel, Rosen, Black & Dean LLP – JDSupra.


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