How Long Will A Mechanic Lien Cause Havoc? Not Very

By on November 12, 2010

I ran across a blog post this afternoon that clearly summarized an important point:

There is a misconception that once a lien is filed or recorded against a property, it remains there indefinitely, similar to a deed or mortgage.  (Refinance PA Mortgage Blog).

Very well put. The point is absolutely true.  Many, many folks in the construction industry think that mechanic liens will impair a property until the lien is paid.   This is not the case.

In some states – like in California – the mechanic lien is only valid for 90 days after its registration.   Less than three months after you file your California lien, then, the lien dissipates and is no longer affecting the property.

In other states, of course, the lien stays valid longer.  In Washington, the lien is valid for 8 months, and in Louisiana, it is valid for a full year.

The fact that the mechanic lien will expire does not defeat the purpose of the lien.   That’s because before the lien expires, lien claimants can file a lawsuit to “foreclose” on the lien.   When this suit is filed, the lien stays put while the merits of the foreclosure action is determined.

We’ve written about this on two previous occasions, and I recommend you read these articles:

What Happens After You File A Mechanic’s Lien?

Is a Mechanic’s Lien like a Mortgage?  Yes and No.

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About Scott Wolfe Jr

Scott Wolfe Jr. is the CEO of Zlien, a company that provides software and services to help building material supply and construction companies reduce their credit risk and default receivables through the management of mechanics lien and bond claim compliance. He is also the founding author of the Lien Blog, a leading online publication about liens, security instruments and getting paid on every account. Scott is a licensed attorney in six states with extensive experience in corporate credit management and collections law, with a specific emphasis on utilizing mechanic liens, UCC filings and other security instruments to protect and manage receivables. You can connect with him via Twitter, LinkedIn and Google+.Read Scott's Biography Post Here
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  • Erica Silver

    I think this article is misleading. Even expired liens can affect the property. I am in Virginia and had a mechanic’s lien filed against my property, which expired after six months (contractor never filed to foreclose on lien). Nevertheless, a year later, in trying to refinance, the mortgage company is requiring that I either pay the lien or go to court to have it released. Consumers beware!

    • http://www.expresslien.com Scott Wolfe Jr

      Hi Erica. Thanks for stopping in and for your comment. You make a very good point about expired mechanic liens. While the laws in many states indicate that a lien expires after a certain period of time, that does not mean the lien inscription will disappear forever. It’s still there, there are just problems legally enforcing that claim.

      As a practical matter, however, that does not solve the problem for the property owner who has the inscription against his/her property.

      Many banks, buyers, etc. will be cautious about doing anything with property that has liens on it – even if the “law” provides it is unenforceable.

      This is a big problem for land owners in many states, and appears to be a problem for you. I guess the good news would be that ordinarily….you should be able to get it removed with court action without much trouble (although, admittedly, with some expense).

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  • Paul McInerny

    While exploring the Internet and the Orange County (CA) Recorder’s web site, we discovered a mechanics lien against our family restaurant from 1993. From reading your article, are we to assume this lien is still valid, but difficult to enforce? Does a lien accrue interest?

    Thank you, Scott!

    • http://www.expresslien.com Scott Wolfe Jr

      Hi Paul – Thanks for visiting the site and for your comment. That’s interesting that you would find a mechanic lien filed against your restaurant for so long ago, but unfortunately, the way that county public records handle mechanic liens are a bit antiquated – in that, when a mechanic lien expires, the record does not disappear or get marked “expired” in any way. Instead, the person viewing the records must know that the lien laws render the lien ineffective, and then disregard the recording. That sounds like a tall order, and it is, as anyone doing title work will be hesitant to ignore anything affecting title on public record.

      So, I’m not a California attorney, and can’t give you legal advice about this. I recommend you check out avvo.com, which is a online lawyer directory and Q&A service. You can ask California construction attorneys questions on this site, and receive answers for free. You may want to post this particular question.

      From a general perspective, the California lien materials I find online and the ones on our website here indicate that a California mechanics lien must be foreclosed upon within 90 days. If a lawsuit is not filed against the property owner to foreclose on the lien within this time, the mechanic lien “expires.”

      So, while the mechanic lien may still be on public record, since it was recorded in 1993 and you were not sued within 90 days of its recording, the lien is likely expired. There may be ways to get it officially cancelled from the records, but you’ll need to consult with a CA attorney about this. Weird circumstance, good luck.

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