Gone are the days when workers had no protection for the work that they put in for a construction project. In this modern era, there are several laws that protect the rights of a construction worker and ensure that they are paid their dues on time for every project that they are involved in. if you are in the construction business or if you happen to be a contractor, you must have heard about mechanic’s lien. It is basically a legal document that is also known as property liens and construction liens depending upon the jurisdiction.
Crucial Things You Should Know before Getting a Tennessee Mechanic’s Lien
When it comes to the state of Tennessee, both contractors and suppliers have pretty strong lien rights. If these professionals are not paid their dues on time for a construction project, they can easily turn to filing a lien to quicken the pace of their payment and also protect themselves. Here are some of the crucial things you should be aware of, before getting a mechanic’s lien in Tennessee.
- Eligibility to File a Lien in Tennessee: When it comes to the eligibility of filing a mechanic’s lien in Tennessee, it pretty much depends on the type of the project. Apart from the 1-4 unit residential owner-occupied properties, on majority of the construction projects all the people involved in the project have their lien rights. This includes the suppliers, sub-contractors, engineers, laborers, contractors, architects, and surveyors.
- Prior Notice Is Essential: If it is a construction project in Tennessee, there has to be some rather interesting notice requirements in the state. For example, general contractors have to provide a Notice to Owner before they can start their work on any construction project. When it comes to the sub-contractors, suppliers and every other party connected with a project, they have a time period of 90 days from the last day of every month in which materials and/or labor were provided and still remains unpaid.
- Contractors And Sub-Contractors Have Different Deadlines: As far as a general contractor is concerned, if it is a residential property, then the lien and response to Notice of Completion should be within a period of 10 days from the date the Notice of Completion was filed. However, if it is a sub-contractor, they are not allowed any mechanic’s lien unless the general contractor and the owner of the property is the same person. When it comes to a commercial property, general contractors have within 30 days from the filing date of the Notice of Completion to file a lien or a response to the notice. The same time period is also allowed to sub-contractors.
- Mechanic’s Lien Does Not Include Extra Fees: In the state of Tennessee, a mechanic’s lien does not include any interest, late fees, service charges or attorney fees. This is because these fees and charges are not a part of the actual improvement cost of a property. On the other hand, the cost of filing at the recorders’ office may be included in the lien.