Articles
Construction Liens
Written by Calin A. Lawrynowicz for “Construction Spinoff," website article, Fall/Winter 2000.
1. What is a construction lien?
2. How does one obtain a construction lien?
3. Preservation, Perfection and Time Limits?
1. What is a construction lien?
A construction lien is legal creation meant to protect construction professionals. It is almost like a special insurance policy for payment. Any party who provides goods or services that 'attach' to a building or property may qualify to register a lien for the value of the goods and services. A valid lien may be the only device that makes certain you obtain payment.
2. How does one obtain a construction lien?
A construction lien requires the registration of the proper documents at the correct land registry office. Preparation of the documents requires the proper legal description of the property and detailed information on the value and nature of the services or materials provided. Proper preparation of the documents is critical as invalid or defective lien registrations may not be enforceable.
3. Preservation, Perfection, and Time Limits?
There are strict time limits in which liens must be preserved and perfected. Preservation, the first step, involves the registration of the lien at the correct registry office. Perfection, the second step, involves commencing a legal action on the lien. The time limitations are vital, but not always straightforward. A qualified professional should generally be consulted to determine when the clock started ticking and when the steps need to be completed. As a general guide, preservation and perfection must be completed in 45 and 90 days respectively from a key date such as last supply of services. Please consult a professional as timing is critical.
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© 2000 Calin A. Lawrynowicz. All rights reserved.
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