Suppliers to Suppliers Usually Can’t File A Mechanics Lien

Suppliers to Suppliers Usually Can’t File A Mechanics Lien

In the mechanics lien law world, there are very few rules that are consistent state-to-state. That a material supplier to another material supplier is without mechanic lien rights, however, is an exception. Nearly every state prohibits suppliers to suppliers from filing a mechanics lien.

This is not only true for private (residential, commercial or industrial) projects, but is also the rule for state, county and federal projects.  If you’re providing materials to another supplier of materials, you’re likely out of luck if interested in filing a lien.

How do you know if you’re a supplier to a supplier?  While this is usually easy to figure out, the easiest thing to do here is look at your customer and ask whether that customer is performing any labor.  If your client isn’t performing or coordinating any labor at the job site, then you’re client is likely a supplier.

Suppliers to virtually any other party will have lien rights (even, yes, sometimes to sub-subcontractors or sub-sub-subcontractors).  But when supplying to another supplier, mechanic lien rights are shut off.

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Suppliers to Suppliers Usually Can’t File A Mechanics Lien
Suppliers to Suppliers Usually Can’t File A Mechanics Lien
Suppliers to Suppliers Usually Can’t File A Mechanics Lien
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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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