Documents Proactive Lien Services Prepares
A pre-lien document notifies the owner and the general contractor of a property that if the party (the Claimant) providing the Preliminary Notice is not paid for works or materials rendered, the Claimant will have the right to record a Mechanics’ Lien against the owner’s property. Pre-liens need to be filed within a specific time frame!
Notice of Intent to Lien:
A document informing the owner and the general contractor of the property someone is taking action to establish a lien against the property. The purpose of a “Notice of Intent to Lien” is to have the bill paid off within the 10-day period to avoid recording the lien statement and creating a cloud on the title. GREAT COLLECTION TOOL!
Acts like a mortgage or deed of trust since it is a recorded and/or filed claim against the property. It acts like a cloud or “hook” on the title, making it a very powerful tool. It has the effect of preventing the owner from selling, financing or refinancing the property. In those cases, they have to satisfy the lien before taking any other action on the property. Mechanics liens need to be filed within a specific time frame!
A document that releases or satisfies a lien after payment has been received by the claimant.
A Mechanic’s Lien cannot be recorded against public property. The government typically requests the general contractor furnish a bond guaranteeing payment for the workers involved with the project. An unpaid sub-contractor can file a lien on the funds appropriated for the job. In some states, Bond Claims can be extended for private projects as well.
We are currently managing lien paperwork in numerous states. If you have questions about jobs outside of Minnesota or Wisconsin, just let us know.