Alabama Mechanics Lien & Notice Chart
It’s easy to file Alabama mechanics liens with zlien, the web’s leading all-in-one mechanics lien compliance manager and security platform. Plus, zlien’s platform can help you prepare and file mechanics lien cancellations, preliminary notices, and more. To learn more about Alabama’s mechanics lien law, read the frequently asked questions below.
Frequently Asked Questions
- Alabama Mechanics Lien FAQs
- Who can file a Alabama Mechanics Lien?
- When is the Deadline to File a Alabama Mechanics Lien?
- Do I Need to Send Notice the Lien Was Recorded?
- Can I Include Attorney’s Fees, Collection Costs, or Other Amounts in the Lien Total?
- When is the Alabama Deadline to Enforce a Mechanics Lien, or, How Long is My Lien Effective?
- Will My Alabama Lien Have Priority Over Pre-existing Mortgages or Construction Loans?
- Must the Alabama Lien Include a Legal Property Description?
- Must the Alabama Lien Include be Notarized?
- Can I File a Alabama Lien if I’m Unlicensed?
- Can I File a Alabama Lien on a Condominium Project?
- Who Cancels the Alabama Lien if/when I get Paid?
- What are the Lien Waiver rules?
- Alabama Preliminary Notice FAQs
- Do I need to send a Alabama Preliminary Notice?
- When do I need to send a Alabama Preliminary Notice?
- What if I send the Alabama Preliminary Notice Late?
- How Should the Alabama Preliminary Notice be Sent?
- Do I have to send the Alabama Preliminary Notice to Someone Other than the Owner?
- Is the Alabama Preliminary Notice Considered Delivered When Sent or When Received?
Alabama Mechanics Lien FAQs
Who can file a Alabama Mechanics Lien?
There are two types of mechanics liens in Alabama, the “Unpaid Balance Lien” and the “Full Price Lien.” An Unpaid Balance Lien is available to parties without a contract with the owner, and is only effective to money actually in the hands of the owner at the time the Notice of Unpaid Lien is delivered to the property owner. A Full Price Lien is a lien in favor of general contractors, or others in direct contact with the owner, OR materialmen who give a Notice to Owner prior to furnishing materials to the project. Surveyors, suppliers to suppliers, and design professionals are not protected by Alabama lien law.
When is the Deadline to File a Alabama Mechanics Lien?
The deadline to file an Alabama mechanics lien is dependent upon the status of the lien claimant, and contingent upon first providing notice to the property owner. After providing notice to the owner, the deadlines to file a lien varies. Laborers must file within 30 days of date labor was last provided; Original contractors must file within 6 months after the entire debt becomes due; And all other claimants must file within 4 months after work or materials were last provided.
Do I Need to Send Notice the Lien Was Recorded?
No. Alabama law does not require that a lien claimant send notice after the lien is recorded.
Can I Include Attorney’s Fees, Collection Costs, or Other Amounts in the Lien Total?
No. Alabama law does not allow for the recovery of attorney’s fees or other miscellaneous amounts in a mechanics lien.
When is the Alabama Deadline to Enforce a Mechanics Lien, or, How Long is My Lien Effective?
Alabama law requires that a mechanics lien be enforced within 6 months from the date the entire amount became due. If this 6-month period passes without an action being filed to enforce the lien, the lien expires. This period is the same time period in which a prime contractor’s lien must be filed.
Will My Alabama Lien Have Priority Over Pre-existing Mortgages or Construction Loans?
No. An Alabama mechanics lien has priority over liens that attached to the property after the mechanics lien attached.
Must the Alabama Lien Include a Legal Property Description?
No. A mechanics lien in Alabama does not require a legal property description to be valid. A description by which the property to be liened can be located or identified is required. If the property is located in a city or town, a description by house number, name of street, and name of city or town is sufficient. If the property being liened is not located within a city or town, the lien also may extend to one acre in addition to the land upon which the improvement is situated. If no accurate description of this additional one acre can be reasonably obtained by the lien claimant, it may be sufficiently described as “one acre of land surrounding and contiguous” to the building.
Must the Alabama Lien Include be Notarized?
Yes. A mechanics lien in Alabama must be notarized to be valid.
Can I File a Alabama Lien if I’m Unlicensed?
Yes. According to Alabama law, there is no licensing requirement for a person otherwise entitled to a mechanics lien to assert those lien rights.
Can I File a Alabama Lien on a Condominium Project?
You may file a lien against an individual condominium in Alabama, provided you are a party allowed to file a mechanics lien, but cannot file a lien against the condominium property as a whole subsequent to the recording of the condominium declaration. However, performing work on the common elements – if authorized by the condominium association – is deemed to have been performed or furnished with the express consent of each owner benefitted, and a lien can be filed against each unit individually.
Who Cancels the Alabama Lien if/when I get Paid?
Alabama law requires that the lienholder shall acknowledge satisfaction of the lien in the margin of the record in the office of the judge of probate within 30 days after satisfaction. Failure to grant the release subjects the lienholder to personal liability of $1000 and liability for actual damages.
What are the Lien Waiver rules?
Alabama does not have statutory lien waiver forms, and therefore, you can use any lien waiver forms. Since lien waivers are unregulated, be careful when reviewing and signing lien waivers. See this article: Should You Sign That Lien Waiver? Also, Alabama state law prohibits contractors and suppliers from waiving their right to file a mechanics lien in contract. You can learn more about the prohibition of such “no lien clauses” at this article: Where Can You Waive Your Lien Rights Before Payment?
Alabama Preliminary Notice FAQs
Do I need to send a Alabama Preliminary Notice?
Anyone contracting directly with the property owner, an “original contractor,” does not need to send preliminary notice. However, for all other parties, sending preliminary notice in Alabama results in greater lien protection. Those who do not send a preliminary notice in Alabama are entitled to later file a mechanics lien for the unpaid balance amount on the project. Those who had properly and timely delivered a preliminary notice are entitled to file a Full Price Lien. Learn more about the differences between a Full Price Lien and an Unpaid Balance Lien here. Anyone who furnishes material (material suppliers certainly, but ambiguous as to whether subcontractors who also supply materials must comply), and who are not contracting directly with the owner, should deliver a Notice to Owner prior to delivering any materials. Doing so entitles the party to a Full Price Lien rather than the usual Unpaid Balance Lien. Regardless of whether a Notice to Owner is or is not delivered, prior to filing a Statement of Lien (i.e. the mechanics lien), anyone who is not in direct contract with the owner must deliver a Notice of Unpaid Lien to the property owner.
Though Alabama’s preliminary notice rules can be dependent on certain factors, strict compliance with the statute is required. A recent court of appeals decision addressed the state’s notice requirements in Gunther v. Carpet Systems of Huntsville, Inc. Read about that opinion here: Alabama Does Require Preliminary Notices – And Strict Compliance Required.
When do I need to send a Alabama Preliminary Notice?
Alabama law does not specify how long prior to performance a Notice to Owner must be sent. Presumably, there must be enough notice for the owner to respond prior to the materials being used in the project. The timing of this notice was discussed in a Alabama Appeals Court Case (October 2013): Gunther v. Carpet Systems of Huntsville, Inc. We discussed the article in a Lien Law Alert: Alabama Does Require Preliminary Notices – And Strict Compliance Is Required. There is some ambiguity about whether a notifying party must deliver the notice before every material delivery, or before the first one only, or before any material delivery where protection is desired.
As to the Notice of Unpaid Lien that must be delivered prior to filing a Statement of Lien, anyone who did not contract with the property owner must deliver a Notice of Unpaid Lien to the property owner. Alabama law does not specify the time by which this notice must be received by the property owner, it only notes that it must be before filing the lien, even if that is just immediately before. Read more about the Notice of Unpaid Lien.
What if I send the Alabama Preliminary Notice Late?
How Should the Alabama Preliminary Notice be Sent?
Do I have to send the Alabama Preliminary Notice to Someone Other than the Owner?
No. In Alabama, notice is to be sent to the property owner, or his agent.
Is the Alabama Preliminary Notice Considered Delivered When Sent or When Received?
Alabama mechanics lien law does not specify whether the notice is considered delivered when sent or when received, but the requirement of Alabama courts that the owner receives “actual” notice seems to point to the notice being considered delivered when received by the owner or his agent.