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Priority Revisited: Can a Mechanics Lien Relate Back?

Priority Revisited- Can a Mechanics Liens Relate Back?

When determining the amount of security and protection afforded by a mechanics lien, the priority of that lien compared to other encumbrances on the property is of clear importance. Accordingly, lien priority is topic of much discussion on the blog, and an area in which clear information can be exceedingly helpful. Since large problems with […]

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Mechanics Lien On Meadowlands Cannot Be Discharged

lien law change mississippi

  Mechanics liens are rather simple. Generally, if you contribute to the improvement of property, you are entitled to a mechanics lien on the property. The lien gives you an ownership interest in the property. Some states will include exceptions to this general rule. For example, in New Jersey, construction liens cannot be asserted against […]

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California Prompt Payment Split Continues

Collecting and keeping the relationship

In April 2015, we wrote an article about the split in California concerning what constitutes a “good faith dispute” when dealing with retention and prompt payment. Since then, the split has continued with the most recent decision being handed down in December 2015. Prompt Payment in California In California, a direct contractor must pay a […]

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Can I Include Attorneys Fees in A Mechanics Lien?

Can I Include Attorneys Fees in A Mechanics Lien?

Certain states allow lien claimants to include more than the amount owed in a mechanics lien claim. This might include associated costs (such as filing fees or interest) or, most commonly, attorneys fees. Other states don’t permit you to include additional costs in the claim of lien itself, but will award attorneys fees to the […]

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US Lien Laws: The Definitive Word Count Rankings

Which States Have the Most Challenging Lien Law?

We all know lien law can be incredibly confusing. All 50 states have different rules and requirements for preliminary notices, notices of intent, mechanics liens, lien waivers, lien releases and more. These requirements are outlined by each state’s mechanics lien statute, but reading and understanding these statutes is no easy task, even for trained attorneys. Slogging through that complex […]

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California Courts Push Right to Repair Act In The Right Direction

Home Construction Is Growing - Send Your Notices

California’s Right to Repair Act (Cal. Civ. Code § 895 et seq.) is designed to provide homeowners with exclusive remedy for damages arising out of certain construction defect claims. Originally, California courts in Liberty Mutual Ins. Co. v. Brookfield Crystal Cove LLC (2013) 219 Cal.App.4th 1194, had ruled that homeowners could file common law claims outside of the […]

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Subordination of Mechanics Liens: The New No-Lien Clause?

Lien waivers have an important, even critical, place in construction payment. The parties closest to the money are highly motivated to make sure the project proceeds free of any lien claims, for several reasons. Not only can mechanics liens potentially force double payment, they cloud the property title and can negatively impact bonding capacity and cash-flow, all of […]

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Texas Construction Fund Act: More Protection?

Texas lien notices

It is no secret that the Texas mechanics lien statute is a rather confusing and daunting piece of legislation. This is especially true for subcontractors as they bear the brunt of strict and complex notice requirements that must be met in order to qualify for mechanics lien protection. The statute requires notices to be sent for each […]

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Michigan Court Limits Applicability of Pay If Paid Clauses

  Pay if paid clauses are design to shift the risk of non-payment to lower tier parties on a construction project. The purpose, in states in which such clauses are allowed, is to obligate a contractor to pay its subcontractor only if the GC has received payment first. This means that absent actual payment to the GC, […]

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How To Read a Lien Waiver

Lien waivers are important documents that, due to their ubiquitous nature, are occasionally overlooked. The critical importance of lien waivers is grounded in two related areas: the ability of lien waivers to be the cornerstone of fair payment – and the potentially devastating consequences when lien waivers are misunderstood or used unfairly as leveraging tools. One key […]

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