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Frequently Asked Questions - New Mexico Mechanics Lien

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What is a New Mexico Construction Lien Claim?

In New Mexico, liens filed on private property are known as Mechanic's Liens. New Mexico construction liens are defined as "a charge imposed upon specific property, by which it is made security for the performance of an act."  The purpose of the New Mexico lien law is to protect those who, by providing labor, materials, skills, or services has changed the value of a property. When a New Mexico mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of the property.

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Who can file a New Mexico mechanics' lien Claim?

Every person performing labor upon, providing or hauling equipment, tools or machinery for, or furnishing materials for the construction of a Project.  Contractors, subcontractors, sub-subcontractors, architects, surveyors or builders can file New Mexico mechanics lien claims.

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Can a mechanics' lien Claim be filed on Public Projects?

In New Mexico, no lien may be filed on public projects or publicly owned property. Contractors are required to obtain bonds on public works, and claims against the bond should be filed instead.

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Are pre-lien notices required in order to file a New Mexico mechanics' lien Claim?

For commercial projects, a New Mexico preliminary notice is required within 60 days of starting work or delivering materials on the project when (1) your contract is not with the owner or prime contractor AND (2) the claim is more than $5,000 AND (3) the project is not on a residential property with less than 4 dwellings. For Residential Projects, a New Mexico Stop Notice Preliminary Notice is required to be served on the property owner and lender within 20 days from the date of first furnishing.

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Can you file a New Mexico mechanics' lien Claim without a pre-notice?

Yes, but failure to comply with the preliminary notice requirements could result in the lien claimant losing its ability to file a New Mexico mechanics lien claim. Depending on your status, a pre-notice may be required in order to file a New Mexico mechanic’s lien.

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When should a New Mexico mechanics' lien Claim be filed?

New Mexico mechanics' liens filed by persons that have a contract directly with the owner must be filed within 120 days of the completion of the contract. All other potential New Mexico mechanics lien claimants have 90 days after completion of the Project to file a New Mexico mechanics lien.

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How much does it cost to file a New Mexico mechanics' lien Claim?

LienItNow.com prepares, files and serves New Mexico mechanics' liens for a fee of $290.00.

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Do I need a written contract to file a New Mexico Mechanics Lien Claim?

No. 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 attempting to file a New Mexico mechanics lien.

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How does filing a New Mexico mechanics' lien Claim help me get my money?

The New Mexico construction lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the mechanics lien.

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

LienItNow.com prepares and serves New Mexico Stop Notices for a fee of $125.00. A New Mexico Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic's lien. A New Mexico 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 New Mexico Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim. The purpose of the New Mexico 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. A New Mexico Stop Notice accompanied by a bond equal to 125% of the amount of the claim must be served via process server to both the construction lender and the owner no earlier than 20 days nor more than 30 days from the date the claimant made request for payment from the original contractor.

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What is an Amendment to a New Mexico mechanics' lien Claim?

LienItNow.com prepares, files and serves New Mexico Amendments to mechanics' lien Claims for a fee of $250.00.  Amendments to a mechanics' lien claim are often needed when something about the lien 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.

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When should a Discharge of a New Mexico mechanics' lien claim be filed?

LienItNow.com prepares, files and serves New Mexico Discharges of mechanics' lien Claims for a fee of $85.00. 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.

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Can I file an Extension of a New Mexico mechanics' lien Claim?

No extensions of New Mexico mechanics' lien Claims are permitted.

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Can I file a Bond Claim on the Project?

LienItNow.com prepares, files and serves New Mexico Bond Claims for a fee of $275.00. Bond claims can only be filed on a project where the owner, contractor or subcontractor have 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 as or more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

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

LienItNow.com prepares, files and serves New Mexico 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.

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