What are the requirements to put a construction lien on a property for work not paid on?
Full Question:
Answer:
The answer will depend in part on the time periods involved. A lien must be filed not later than the earliest of:
(i) sixty days after filing or recording of the notice of substantial completion, or
(ii) ninety days after filing or recording of the notice of termination, or
(iii) ninety days after such person or any person by, through or under him last performed or furnished labor or materials or both labor and materials.
In some cases, a letter of intent to file a lien will prompt a person to pay. If other liens are filed before yours, such as liens for creditors who win a court judgment, they will be entitled to priority. Creditors who have priority are entitled to be paid ahead of junior creditors, and the junior creditors will only collect if there are assets left over after creditors with priority are paid.
The following are MA statutes:
G.L.c. 254, § 2. Written contract; notice.
Section 2. A person entering into a written contract with the owner of
any interest in real property, or with any person acting for, on behalf
of, or with the consent of such owner for the whole or part of the
erection, alteration, repair or removal of a building, structure, or
other improvement to real property, or for furnishing material or rental
equipment, appliances, or tools therefor, shall have a lien upon such
real property, land, building, structure or improvement owned by the
party with whom or on behalf of whom the contract was entered into, as
appears of record on the date when notice of said contract is filed or
recorded in the registry of deeds for the county or district where such
land lies, to secure the payment of all labor, including construction
management and general contractor services, and material or rental
equipment, appliances, or tools which shall be furnished by virtue of
said contract. Said notice may be filed or recorded in the registry of
deeds in the county or registry district where the land lies by any
person entitled under this section to enforce a lien, and shall be in
substantially the following form:
Notice is hereby given that by virtue of a written contract dated
___________, between ______________, owner, and ____________,
contractor, said contractor is to furnish or has furnished labor and
material or rental equipment, appliances or tools for the erection,
alteration, repair or removal of a building, structure, or other
improvement on a lot of land or other interest in real property described
as follows:
(INSERT DESCRIPTION)
Such person may file or record the notice of contract at any time after
execution of the written contract whether or not the date for performance
stated in such written contract has passed and whether or not the work
under such written contract has been performed, but not later than the
earliest of:
(i) sixty days after filing or recording of the notice of
substantial completion under section two A; or
(ii) ninety days after
filing or recording of the notice of termination under section two B; or
(iii) ninety days after such person or any person by, through or under
him last performed or furnished labor or materials or both labor and
materials.
G.L.c. 254, § 5. Enforcement of lien; procedure.
Section 5. A lien upon land for the erection, alteration, repair or
removal of a building or other structure or other improvement of real
property or a lien established under section seventy-six of chapter
sixty-three, section six of chapter one hundred and eighty-three A, or
subsection (a) of section twenty-nine of chapter one hundred and
eighty-three B shall be enforced by a civil action brought in the
superior court for the county where such land lies or in the district
court in the judicial district where such land lies. The plaintiff shall
bring his action in his own behalf and in behalf of all other persons in
interest who shall become parties. An attested copy of the complaint,
which shall contain a brief description of the property sufficient to
identify it, and a statement of the amount due, shall be filed in the
registry of deeds and recorded as provided in section nine within thirty
days of the commencement of the action, or such lien shall be dissolved.
All other parties in interest may appear and have their rights determined
in such action, and at any time before entry of final judgment, upon the
suggestion of any party in interest that any other person is or may be
interested in the action, or of its own motion, the court may summon such
person to appear in such cause on or before a day certain or be forever
barred from any rights thereunder. The court may in its discretion
provide for notice to absent parties in interest. The terms "party in
interest" and "person in interest", as used in this chapter, shall
include mortgages and attaching creditors.
