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How It Works


Overview

Lien Law Basics
  • Lien laws were created to protect your work from non-payment.
  • Your work is secured against the title or the bond to the improved property.
  • All 50 states have lien laws but with state-specific timeline and format requirements.

Step 1 - Notify

Secures your lien rights
  • Many businesses send preliminary notices as standard procedure on every new project. Smart business sense!
  • Most states require you to send a notice to the owner and other responsible parties notifying them of your "right" to lien the title or bond to the improved property if you are not paid for your work.
  • These notices serve as a "heads up" and are not filed at the recorders office.

Sending a notice is both easy and inexpensive
  • Sign up with your email and contact information
  • Provide basic project information such as project owner, project lender, who hired you, and work you are doing.
  • Review summary and pay...that's it.

Step 2 - Send a stop notice or file a claim

Let everyone know that you except to get paid
  • Lien law gives you very powerful tools to protect you from non-payment
  • A stop notice places an immediate hold on fund disbursements from owner or lender
    for amount owed to you
  • If not paid, a lien or bond claim literally and legally "claims" your right to be paid
  • Stop notices are mailed to responsible parties
  • Claims are both mailed to responsible parties and are filed with recorders office

Stop Notice

Places immediate hold on disbursements by owner or lender
  • A stop notice places an immediate hold on fund disbursements from owner or lender
    for amount owed to you
  • Check availability in your state
  • Stop notices are mailed to responsible parties
  • Serves as legal notice to owner and lender that you have done work and expect to be paid
  • Mandatory timelines and formats

Lien Claim

Establishes security interest in title to a property
  • If not paid, a lien claim literally and legally "claims" your right to be paid
  • Required to foreclose upon the property if needed
  • Claims are both mailed to responsible parties and are filed with recorders office
  • Serves as legal claim to owner and lender that you have done work and expect to be paid
  • Mandatory timelines and formats

Bond Claim

Initiates claim against a payment bond on a project
  • If not paid, a bond claim literally and legally "claims" your right to be paid
  • Required to foreclose upon the bond if needed
  • Claims are both mailed to responsible parties and are filed with recorders office
  • Serves as legal claim to bonding entity that you have done work and expect to be paid
  • Mandatory timelines and formats

Step 3 - If still not paid, foreclose on the property or bond

Enforce your mechanics lien and get paid

Consult with an attorney to consider taking the next step of foreclosure. We can refer you to an experienced law firm in your area.

Send Notice Now

Or call 1.866.623.6863