What determines the priority of construction liens?

Generally speaking, lien priority is determined according to the date of recordation or the date in which the lien was filed. This means that the ranking of which lienors get to receive payment first is established based on which liens were recorded the earliest. This is also known as “first in time, first in right.”

What lien takes priority?

A general rule in property law says that whichever lien is recorded first in the land records has higher priority over later-recorded liens. This rule is known as the “first in time, first in right” rule.

Where does a construction lien need to be filed?

There are certain requirements that the contractor must meet to be eligible to file a lien, and these requirements vary from state to state. However, in most states, the contractor files the construction lien with the county clerk or recorder’s office in the county where the project lies. This makes the lien part of the public property records.

Who is eligible for a lien waiver in construction?

On most projects, the GC requests, collects, and tracks lien waivers from everyone on the job when they are paid. This includes contractors, subcontractors, material suppliers, equipment rental companies, and any other party (potential lien claimant) to the construction project.

How does a fully signed construction lien release work?

In this scenario, a fully signed lien release would be provided to either the owner’s attorney, or the lien claimant’s attorney, who agrees to hold onto the document until the payment process is complete. Once the payment is made, or clears the bank, the attorney either files the document, or provides it to the owner.

When to file a construction lien in Arkansas?

One hundred and twenty days (120) from the date that labor or materials were furnished. A.C.A. § 18-44-117. The original contractor may file his lien at any time, but other parties must give the property owner ten (10) days notice (see notice below) prior to filing of a lien claim.

What are the requirements for a construction lien?

Many construction lien laws contain very specific requirements for how the lien must be recorded and how notice must be provided to the property owner. Any misstep may invalidate the lien, and an attorney with experience in this area of the law may be better able to identify those defects and guide you through the process of exploiting it.

When to file a construction lien in New Jersey?

The law is different in New Jersey. There, a construction lien on a commercial project must be filed with a county clerk within 90 days of the last day services or materials were provided. Filing a construction lien on residential projects requires filing a Notice of Unpaid Balance and Right to File Lien within 90 days of the last day of service.

Can a construction lien be placed on a property in Michigan?

Yes. Michigan law requires a property owner to provide a copy of the contract between the contractor and the owner, as well as a statement of the amount due and unpaid on that contract to any lien claimant who make a written request for same. (Please see MI-12-09, MI-14-09). M.S.A. § 570.1113 (1).

How do you file a construction lien release?

The payment is made either via certified check or wire transfer, and the deed is prepared, signed and ready to hand over to the new owners once the money transfer is confirmed. The new owners then take the deed and file it with the property records office. For a lien release, the same arrangement can be made.