Frequently Asked Questions - Tennessee Mechanics Lien
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What is a Tennessee mechanics' lien claim?
In Tennessee, liens filed on private property or on funds relating to a public project are known as Mechanic's Liens. When a Tennessee mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property. When a Tennessee mechanics lien is filed with regard to work performed on a publicly or government owned property, it attaches to the fund of money which the public agency has allocated for a project. The reason for this is that you cannot force the sale of publicly owned land (public agencies mean any county, city, town, township, public commission, public board or other municipality authorized by law to make contracts for the making of any public improvement in any city, town, township or other municipality).
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Who can file a Tennessee mechanics' lien Claim?
All persons providing labor or materials for the construction, repair, or improvement or removal of any permanent building or structure next to real estate is entitled to a Tennessee mechanics' lien . In Tennessee, architects and engineers are entitled to mechanics' lien rights.
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Are pre-lien notices for a Tennessee mechanics' lien Claim required?
In Tennessee, a contractor in direct contractual privity with the owner has no pre-lien notice requirements. However, subcontractors have various pre-lien notice requirements. Subcontractor pre-lien notice requirements are as follows: a notice of intent to file a lien must be filed within 90 days of the completion of the improvement or 90 days after completion of the contract in order to preserve ones lien rights. In addition, except for residential property, a notice of nonpayment must be provided to the owner and general contractor within 90 days of the last day of the month within which the subcontractor's labor and materials were provided. Failure to provide this notice of nonpayment will extinguish any potential Tennessee Mechanics Lien rights. Subcontractors are required to give a separate pre-lien notice for each month within which unpaid services or supplies were provided.
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When should a Tennessee mechanics' lien Claim be filed?
Those with direct contractual privity with the owner have 1 year from their last date of work file a Tennessee mechanics lien; subcontractors have 90 days from their last date of work to file a Tennessee mechanics lien.
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How much does it cost to file a Tennessee mechanics' lien Claim?
LienItNow.com prepares, files and serves Tennessee mechanics' liens (which includes a written notice of intent to claim a lien, if necessary, as well as a verified statement of lien) for a fee of $290.00. Tennessee pre-lien notices are not included in the $290.00 price, but can be filed for a fee of $50.00.
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Do I need a written contract to file a Tennessee Mechanics Lien Claim?
No, Tennessee does not require written contracts in order to file a Tennessee Mechanics Lien. Oral contracts are sufficient.
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How does filing a Tennessee mechanics' lien Claim help me get my money?
On a private project, the Tennessee mechanics' 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 Tennessee Stop Notice and why should it be filed
LienItNow.com prepares and serves Tennessee Stop Notices for a fee of $125.00. 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.
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What is a Tennessee Amendment to a mechanics' lien Claim?
LienItNow.com prepares, files and serves Tennessee Amendments to mechanics' lien Claims for a fee of $250.00. 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.
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When should a Tennessee Discharge of mechanics' lien claim be filed?
LienItNow.com prepares, files and serves Tennessee 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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How much does it cost to file a Tennessee Extension of a mechanics' lien Claim?
LienItNow.com prepares, files and serves extensions of mechanics' lien Claims for a fee of $85.00. All lien claims expire after a certain period of time, and filing an extension of the mechanics' lien claim prolongs the expiration date. Tennessee law, however, does not permit an extension of mechanics' lien claims.
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Can I file a Bond Claim on a Tennessee Project?
LienItNow.com prepares, files and serves Tennessee Bond Claims for a fee of $275.00. 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 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 Tennessee payment bond?
LienItNow.com prepares, files and serves Tennessee 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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