Last updated on August 12th, 2025 at 05:05 am
Sometimes, getting compensated for work done on a person’s property can be a challenge. That’s when a mechanics lien becomes handy. It acts as a reminder on the property that you’ve worked there and haven’t received your payment.
If you’re involved in these types of industries – like contractors, subcontractors, or material suppliers – you can use this reminder. Before starting, ensure that your work is eligible under state laws.
A Guide on how to Place a Mechanics Lien
A Complete Guide to Securing Payment for Construction Work
What is a Mechanics Lien?
Mechanics lien is, in a way, a legal claim against a property to make sure contractors, subcontractors, and material suppliers are paid for the work done. This lien stays on the title of the property until the payment is made, making it difficult for property owners to sell or refinance.
Who Can File a Mechanics Lien?
Eligible Parties
- General contractors and subcontractors
- Material suppliers
- Equipment rental companies
- Laborers and skilled workers
- Design professionals (architects, engineers)
⚠️ Important Requirement
Most states require contractors to be properly licensed to file a mechanics lien. Unlicensed contractors may forfeit their lien rights.
Step-by-Step Process
Confirm Eligibility
Verify you meet state requirements for filing a mechanics lien, including licensing and timing requirements.
Send Preliminary Notice
Send required preliminary notices within state-specified timeframes. This is typically 20-45 days from starting work.
- Include property owner’s name and address
- Describe work or materials provided
- Send via certified mail
Prepare Lien Document
Gather all required information and complete the mechanics lien form for your state.
- Your full name and contact information
- Property owner’s details
- Detailed work description
- Total amount owed
- Property address and legal description
File the Lien
File at the county recorder’s office where the property is located. Filing fees range from $70-$100.
- File in person, by mail, or electronically
- Pay required filing fee
- Notarization typically not required
Serve the Property Owner
Notify the property owner about the filed lien via certified mail and complete proof of service.
Enforce if Necessary
If payment isn’t received, you may need to take legal action within 90 days to 1 year (varies by state).
California-Specific Details
Preliminary Notice Requirement
California requires sending out what is called a preliminary notice within 20 days of first furnishing labor or materials. The notice goes to the owner, general contractor, and construction lender of the property.
California Timeline
Preliminary Notice
Within 20 days of first furnishing labor or materials
Filing Deadline
Within 90 days of completion or cessation of work
Enforcement
Must commence foreclosure action within 90 days of recording the lien
⚠️ California Special Requirements
California has strict licensing requirements – unlicensed contractors cannot file mechanics liens. Also, preliminary notices must include specific language and formatting requirements.
Colorado-Specific Details
Notice of Intent Requirement
Colorado requires a “Notice of Intent to File Lien” to be sent at least 10 days before filing the actual lien. This gives the property owner a final opportunity to resolve payment issues.
Colorado Timeline
Notice of Intent
At least 10 days before filing the lien
Filing Deadline
Within 4 months of last work performed or materials supplied
Enforcement
Must file lawsuit to foreclose within 6 months of recording the lien
⚠️ Colorado Special Requirements
Colorado requires contractors to be licensed and bonded. The lien must include a legal description of the property and be verified under oath. Public improvement projects have different rules.
Texas-Specific Details
Monthly Notice Requirement
Texas requires parties to send notices for each and every month that they provided labor or materials (but haven’t been paid for them). This is different from most states that require only one preliminary notice.
Texas Timeline
Monthly Notices
For residential: 15th day of 2nd month after work/materials provided
Filing Deadline
Commercial: 15th day of 4th month after work completed
Residential: 15th day of 3rd month after work completed
Enforcement
Must sue to foreclose within 1 year of last filing date
Key Deadlines to Remember
⏰ Critical Timing
Missing any deadline can invalidate your lien rights. Always consult your state’s specific requirements and consider legal counsel for complex situations.
Before You Start
- ✓ Verify licensing requirements
- ✓ Understand state-specific rules
- ✓ Prepare notice systems
During the Project
- ✓ Send preliminary notices
- ✓ Document all work performed
- ✓ Track payment schedules
After Non-Payment
- ✓ File lien within deadline
- ✓ Serve property owner
- ✓ Prepare for enforcement
Releasing the Lien
Once payment is received, you must release the lien within 10-30 days (varies by state):
- ✓ Complete lien release form
- ✓ Sign before notary public
- ✓ File with county recorder
- ✓ Serve copy to property owner
- ✓ Keep records of release
Frequently Asked Questions
💰 Cost Breakdown
✅ Success Statistics
- 90%+ of liens result in payment within 90 days
- 47% success rate for Notice of Intent to Lien alone
- Highest success rate of any collection method in construction
📍 State Examples
🚫 Written Required (4 states)
- Delaware
- Kentucky
- Massachusetts
- New Jersey
No written contract = No lien rights
⚠️ Partial Requirements
- Texas: Required for homestead
- Arizona: Certain work types
- Colorado: Specific values
- Indiana: Certain contractors
✅ Verbal OK (37 states)
Most states accept oral agreements and implied contracts
📝 If You Only Have Verbal Agreement:
- Send confirming emails about scope and price
- Take progress photos daily
- Keep detailed time records
- Save all text messages
- Create written change orders
- Document all payments received
⏰ CRITICAL WARNING
These deadlines are ABSOLUTELY INFLEXIBLE. No agreement, promise, or excuse can extend them. Courts have no discretion to grant extensions.
📅 Common State Deadlines
🔔 When the Clock Starts
- From your last day of actual work or material delivery
- NOT from invoice date or payment due date
- Warranty work can extend deadline
- Notice of Completion can shorten deadlines
🎯 Action Plan
- Calculate deadline immediately when payment issues arise
- Mark calendar with 30, 60, and 90-day warnings
- Never rely on payment promises to delay filing
- File early – you can always release if paid
💰 Typical Payment Timeline
📋 Your Action Plan
- Day 1-10: Serve copies via certified mail to owner, GC, lender
- Day 10-14: Send Notice of Intent to Foreclose if no response
- Day 15-60: Negotiate while preparing for enforcement
- Before deadline: File foreclosure lawsuit if necessary
⚖️ Enforcement Deadlines
🎯 Why Liens Get Paid Quickly
- Prevents property sales and refinancing
- Triggers lender intervention
- Affects business credit
- Can lead to foreclosure
- Title companies won’t insure with liens
🔧 Three Removal Methods
1. Negotiate Settlement
Most Common (70%)
Partial payment for quick release
Cost: Settlement amount only
2. Bond Off the Lien
Quick but Expensive
Surety bond for 110-150% of lien
Cost: 1-5% premium + bond
3. Sue to Vacate
Slowest & Most Expensive
Challenge validity in court
Cost: $10,000-50,000+
⚠️ Common Challenge Grounds
- Missed filing deadlines
- No preliminary notices
- Unlicensed contractor
- Wrong property description
- Incorrect party names
- Calculation errors
- Work outside scope
- No owner consent
🛡️ Protect Your Lien
Bottom Line
So, you want to place a mechanics lien on a property. First, check if the law says you can. Then, send out that early note saying you plan to do it. Get your papers right—include all needed details and grab the correct form.
File those papers at the county office, by hand, mail, or online. Don’t forget to let the owner know—it’s a must-do step! If things don’t move forward, look into how to push for what you’re owed or maybe even release the lien if payment comes through.
For property owners who have a lien and want to sell their house fast in San Antonio, cash buyers can help you solve that problem too.
