Category Archives: construction liens


Idaho Mechanic’s Lien

In Idaho, liens filed on private property or on funds relating to a public project are known as Mechanic’s Liens. When an Idaho mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property.

Contractors, as well as subcontractors, design professionals, sub-subcontractors and material suppliers can file an Idaho mechanics lien. Suppliers to suppliers cannot file Idaho construction lien claims.
The filing of an Idaho construction lien must be completed within ninety days after the completion of the labor or services or furnishing of materials, or the cessation of the labor, services or furnishing of materials for any cause.

 In Idaho, oral contracts are sufficient if you have sufficient documentation to show the existence of an agreement or that you performed the work for which you are filing a construction lien.

A report from the Kansas City Federal Reserve Bank

According to Bizjournals, the Federal Reserve Bank of Kansas City which regulates banks in a seven-state region, allowed for land development and construction loans to be made during the second quarter.   According to the recent report by the Federal Reserve Bank of Kansas City, the banks only netted a profit of $110 million over loans in the quarter which isn’t much, but is an improvement compared to previous quarters where banks shunned construction and land loans.    

While home equity credit lines remained unchanged, $760 million was made in the quarter through commercial and industrial loans.  The banks in the region received $3.45 billion in the quarter from loans. 

Even though loan levels increased throughout the region during the 12 months ending June 30th, New Mexico’s loan-to-asset ration fell by 63 percent during this time frame, previously being at 64 percent the year before and 65 percent in 2011. 

The rest of the region’s ratio was just over 56 percent.  The states included it the region that the Kansas City Federal Bank oversees are Wyoming, Kansas, Missouri, New Mexico, Colorado, Oklahoma and Nebraska.

Filing Califonia Mechanic’s Liens

In California, liens filed on private property are known as Mechanic’s Liens. When a California mechanic’s lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property.

In most circumstances, California does not allow mechanic’s liens to be filed on government owned property. However, nearly every project on government owned project is required to have a payment bond in place to protect subcontractors and suppliers. Filing a claim against the payment bond secures your claim for money in a way that is similar to filing a lien claim. In addition to the payment bond, stop notices may also be filed. 

Contractors, as well as subcontractors, design professionals, sub-subcontractors and material suppliers can file a California mechanic’s lien. If a company supplies material to a material supplier, they are not eligible to file a California mechanic’s lien claim.

Within 20 days of the commencement of work on the property, subcontractors and suppliers should provide written notice to the owner, the general contractor and the construction lender that they are performing work on the property. If the notice is served late, then the claimant can claim a California mechanic’s lien for the value of the labor or materials provided in the 20 days preceding the service of the notice and thereafter.

Prime contractors must file a California mechanic’s lien within 60 days after a notice of completion or notice of cessation is recorded, or if no recording of completion or cessation is accomplished, within 90 days after the completion of the work of improvement. Subcontractors and materialmen must file a California mechanic’s lien within 30 days after a notice of completion or notice of cessation is recorded, or if no recording of completion or cessation is accomplished, within 90 days after the completion of the work of improvement.
LienItNow.com provides you with a simple mechanic’s lien questionnaire form to complete, which provides us with all of the information needed for us to process your document. With that information, LienItNow.com prepares the appropriate lien claims.

Thanks For Your Patience During Hurricane Sandy Outage

To all our valued clients, 

First and foremost, for anyone who was impacted by Hurricane Sandy, we hope that you and your family are safe and on the road to recovery. If there is anything that we at LienItNow can do for you, your firm or business, please let us know. It has been a trying time, but we continue to be so impressed by the way everyone has pulled together.

As a New Jersey based business, we experienced the full force of this historic storm. While our headquarters were unreachable for some time, we were able to continue servicing all our customers through our backup location and were always fully operational. We are now back in our main offices in New Jersey and it’s business as usual at LienItNow. Try as she did, Sandy has not affected our proven national network, secure data locations and the ability to provide quick and effective lien filing and other services to our clients.

We are very proud of the team at LienItNow as they continue to go above and beyond the call to help each other as well as our clients during this event. We remain committed to providing the highest quality services and responsiveness, and are ready to assist with any need.

Please feel free to contact us at 1-888-543-6765, and feel free to reach out to your LienItNow client services representative with any questions you may have. We truly do appreciate the opportunity to serve you and again, please let us know if we can be of any assistance to you, your firm or your business. 

ALL DOCUMENTS SHOULD BE SENT TO THE LIENITNOW OFFICE INDICATED BY YOUR CUSTOMER SERVICE REPRESENTATIVE: Now that business is back to normal in all of our locations, please resume sending documents to the locations provided to you in the email instructions sent to you with the draft document. 


DISRUPTIONS IN CONNECTICUT, NEW JERSEY, NEW YORK AND PENNSYLVANIA: Due to widespread power outages and the closing of government offices, filings in some parts of CT, NJ, NY, and PA may experience delays. Please be assured that as soon as each clerk’s office reopens, we will have your document ready to be filed. Most states will extend deadlines due to government office closures resulting from natural disasters.

 

If you have any questions about your order, please call us at 1-888-543-6765, or click here to start the lien filing process now.

Does Anyone Know You’re Working?

On many projects, mechanics lien claims are substantially limited or destroyed because the owner did not know the claimant was working on the Project.  In most states, pre-lien notices are required in order to file a lien claim, and waiting to provide the notice can limit lien rights.

Providing a notice that work is being performed or materials are being delivered is, in many States, required either by statute or by contract. While this may seem like just another paperwork headache, it is a vital part of the construction process that should not be overlooked.

Many notices are not given simply due to inadvertence or not knowing the statutory or contractual requirements. But notices are also kept back for another reason: many contractors and suppliers think that providing a notice will create animosity on the project.

On a normal project, nothing could be further from the truth.  Pre-lien notices, which are usually provided at the beginning of a project, are simply informational.  The notices let the owner and the general contractor know who is working on the project so that everyone knows everyone.  Think of notices as sort of an introduction…an introduction that protects you when payment is not made.

To file a pre-lien notice on one of your projects, visit http://lienitnow.com.

Good News for Contractors…NYTimes Reports

The New York Times reports that throughout NYC and beyond, “there has been there has been an addition to the hubbub: Contractors, lines of them, waiting for authorization to ascend the elevator to the apartments they are in the process of renovating.”

For a country that has been reeling from a tough recession over the last couple of years, this is a good sign.  Renovations mean, for the most part, that home prices are stabilizing, banks are lending, mortgages are less than the value of the property, and people are starting to have faith in the value of their homes.

All of this is good news for contractors, who have been faced with little to no work in the last couple of years…and the work that they find is bargained down to cutthroat rates.

These days, bargains are harder to find for homeowners, which may be good news overall for the economy.  Getting prices back to normal means higher wages for laborers and more money for suppliers, which in turn results in more people with more spending power.

We’ll be keeping an eye out to see when commercial construction starts to pick up.  That should be a sure sign that the economy is on the mend.

Current Economic Environment Leads to Shoddy Work and High Receivables?

When the economy collapsed over a year ago, the construction industry when down with it. As we’ve all heard over the past year, much of the boom was a result of a real estate bubble that was caused by loose bank lending practices. Companies and individuals were able to get lost cost mortgages, and where able to get financing to renovate existing buildings, or build new ones. 

Now that the days of easy money are gone, the contractors that are left in business are being forced to perform work at a cost much lower than 2 years ago.  But what is the effect of these new low prices?  Has it turned the construction industry into a sort of Walmart – the goods are cheaper, but the quality is low.

In an article posted on Linkedin by Jeffrey Stern entitled The Contractor’s Job is to Protect the Client, the argument is made that the low-bid environment places the contractor and client in an adversarial position, resulting in increased litigation, lower quality, excessive change orders and generally unhappy customers.

Mr. Stern’s argument may be correct, but haven’t customers of contractors complained about shoddy work for years? New construction has been something that people continue to look at with skepticism. So is construction worse now that contractors’ margins are tighter?  The argument could be made that the economic crisis has not affected the quality of construction projects because contractors are afraid of non-payment, and are doing everything possible to ensure payment in full.

What is clear is that mechanics’ lien filings are up accross the board.  Many of these lien filings are a result of banks freezing or slowing construction loan payments to commercial project owners.  When the bank freezes or slows funding, contractors have no choice but to protect their receivables and file construction liens. But that can be an expensive solution, especially when lawyers get involved.  To avoid those fees, there are lien filing services availabe, such as LienItNow.com

Since this is the first post on this blog, it might be a good idea to explain its purpose.  It is our hope to provide information on the current state of the construction industry, helpful links, news, and related discussions.  Since the blog is related to LienItNow.com, the other purpose will be to provide contractors, subcontractors, suppliers and others entitled to lien rights with information about their lien rights.  We hope the construction industry will find it to be helpful.

LienItNow.com provides lien filing services to the entire United States, and offers other services related to lien filing, such as pre-lien notices, stop notices, amendments to mechanics liens, extensions to mechanics liens, discharges of mechanics liens, pre-notices for bond claims, and bond claims.  LienItNow.com files these documents for the claimant, double checks to make sure the property upon which the lien is being filed is the correct property, and serves the documents on the appropriate parties.  All of this is done for a low, flat rate.