THE MECHANIC’S LIEN: WHAT DOES IT DO AND HOW CAN IT HELP ME?
You’re a contractor. You’ve done all the work you were contracted to do, you’re proud of the finished product, and you deserve to be paid. However, as you and any other contractor know, it’s not always that easy. If you’re facing the situation of non-payment for your work, there are options to ensure payment.
What is a mechanic’s lien?
It’s been called the construction industry’s most effective collection tool. A mechanic’s lien is a lien placed on the property that was the subject of a construction project. The lien prevents the owner from selling, refinancing, or transferring the property.
How does this help me collect?
The mechanic’s lien allows the lien holder to bring a lawsuit to collect on the lien. However, these liens do not last forever and the lien holder must bring a lawsuit to collect in a specific period of time or lose the lien.
How long does the lien last?
In Ohio, the lien lasts for six years, which is a much longer period than in many other states.
Can the lien be re-filed or renewed if I don’t bring a lawsuit to collect?
The lien cannot be renewed. The lien also realistically cannot be re-filed, because if the lien has expired then the lien holder will be far outside of the period to file the lien, which ranges between 75-120 days in Ohio. If the lien has expired in Ohio, then the lien holder will be far beyond the 75-120 day period to file the lien fresh.
If the lien has expired, do I have any other options to collect?
Possibly, though it very much depends on the facts of your individual case. Because contractors work pursuant to a contract with the property owner, there may still be potential to bring a lawsuit under the contract. An experienced attorney can provide specific guidance.
How can I collect on the lien?
The collection process involves filing a suit in court and beginning judicial proceedings. An experienced attorney can assist in the process.
Our firm has a great amount of experience working with mechanic’s liens and we take pride in ensuring contractors get paid for their work. If you are facing this situation and need assistance, we would love to help.