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Maryland Lien Frequently Asked Questions

Maryland Quick File: Lien | Discharge of Lien | Pre-Lien Notice | Stop Notice | Amendment of Lien | Bond Claim

 

What is an intent to file mechanics’ lien claim?

In Maryland, the construction lien claim process starts with filing an intent to file lien. Intents to file lien are provided to the owner prior to enforcing and securing and/or foreclosing a lien.  The intent to file lien notifies the owner that the claimant will be filing an action with the court to secure an interest in the property for the face amount of the intent to file lien. After an intent to file lien is provided to the owner, the claimant must seek to secure their lien by filing an action with the court. LienItNow.com only processes and serves the intent to file lien. The claimant should hire an attorney in order to secure and enforce a lien with the court.

Who can file an Intent to File Mechanics’ Lien Claim?

Contractors, subcontractors, sub-subcontractors and suppliers have mechanics’ lien rights. There is no requirement that there be contractual privity with the owner or with a general contractor for a subcontractor or supplier to have lien rights. Architects and engineers who prepare plans and specifications also have lien rights.

Are pre-notices for a Mechanics’ Lien Claim required?

Maryland does not require pre-notices.

When should a Mechanics’ Lien Claim be filed?

The intent to file lien must be served within 120 days after the claimant has performed its last work or furnished the last of its materials. An action to enforce the intent to file lien claim and obtain a security interest in the property must be filed with the court within 120 days after the claimant has performed its last work or furnished the last of its materials.

How much does it cost to file a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves Maryland Intent to File Mechanics’ Liens for a fee of $250.00.

Do I need a written contract?

No.  Oral contracts are sufficient.

How does filing an Intent to File Mechanics’ Lien Claim help me get my money?

On a private project, the intent to file mechanics’ lien places provides notice to the owner that the claimant will be seeking to place an encumbrance on the property which will that makes it difficult to resell or re-finance the property without first removing the lien.

What is a Stop Notice and why should it be filed?

LienItNow.com prepares and serves Maryland Stop Notices for a fee of $100.00.  A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien. A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

What is an Amendment to a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves Maryland Amendments to Mechanics’ Lien Claims for a fee of $225.00.  Amendments to a mechanics’ lien claim are often needed when something about the claim changes.  Common changes to a lien claim are increases or reductions in the amount due to the lienor, or a change to the last date of work.

When should a Discharge of Mechanics’ Lien claim be filed?

LienItNow.com prepares, files and serves Maryland Discharges of Mechanics’ Lien Claims for a fee of $75.00.  Once the lienor has been paid the amount contained in its lien claim, or has come to an agreement that requires the lien claim to be removed from the property records, a Discharge of Mechanics’ Lien Claim should be filed.

How much does it cost to file an Extension of a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves extensions of Mechanics’ Lien Claims for a fee of $75.00.  All lien claims expire after a certain period of time, and filing an extension of the mechanics’ lien claim prolongs the expiration date.  Maryland law, however, does not permit an extension of mechanics’ lien claims.

Can I file a Bond Claim on the Project?

LienItNow.com prepares, files and serves Maryland Bond Claims for a fee of $250.00.  Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

Do I need to file a Pre-Notice to make a claim against a payment bond?

LienItNow.com prepares, files and serves Maryland Pre-Notices for bond claims for a fee of $50.00.  Depending on the terms of the payment bond, pre-notices may or may not be required.  LienItNow.com recommends that, prior to or immediately after starting work or delivering materials to a project, subcontractors and suppliers, file a pre-notice that it is a potential beneficiary of the construction project’s bond.

Click on the appropriate link below to start the filing process in Maryland.

Lien | Discharge of Lien | Pre-Lien Notice | Stop Notice | Amendment of Lien | Bond Claim


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