Mechanics lien

A mechanics lien is a hold on real property for the benefit of someone whose work or property improves the property. It is called by various names, including materialman's lien, supplier's lien, laborer's lien, construction lien and others. Through "perfecting" a lien, the technical term for establishing a mechanics lien, the owner's title to the property suffers an interference that will have to be addressed before the owner can restore clear title. Generally, a lien would only arise if there is a payment dispute, although some states (e.g. California ) require pre-lien notices at the beginning of a project. Since real property ownership is mostly a function of state law, establishing a mechanics lien is mostly a process governed by state law, in particular a mechanics lien statute. The process for perfecting a mechanics lien varies significantly from state to state. However, common parts of the process of perfecting a mechanics lien include notice to the owner and to other persons or entities involved in the construction project, and also the drafting and filing of a document with the government office that records deeds or titles to land.

Mechanics liens are also sometimes known as contractors liens and construction liens. Historically, the term "mechanic" once referred to any person who performed skilled labor, not limited to current usage that assumes a machine to be the subject of that work. Thus, at the time the phrase "mechanics lien" was invented, the understanding was that such a person might be a carpenter, plumber, or the like. Because of the change in the meaning of the word "mechanic," some states have changed the statutes to have a "mechanics lien" for people who work on cars and the like, and a separate "construction lien" statute to deal with construction-related payment disputes. The term "lien" comes from the French root (via William the Conqueror), with a meaning similar to link; it is related to "liaison." Mechanics liens on property in the United States date from the last 1700's.

What type of contribution counts as a valid basis for a mechanics lien is also variable, depending on the particular state statute that applies. The core purpose is protecting the benefit that a worker provides, such as the time and effort a carpenter puts into nailing the boards together on the job site, and thus is included in the scope of most liens. However, other types of contributions are less direct - the contribution of an architect, or the supply company that delivers materials, or a company that rents the backhoe to the contractor, or the company that rents the port-a-pots to the contractor, or the truck that brings food to the workers at lunchtime. There is no simple dividing line that is useful in every state, or even in every case. Often, determining whether a party has a legitimate lien right depends on examining other cases that have either upheld or rejected lien claims in the same state.

Mechanics liens are a reaction to the imbalance of power between a worker at a construction site, and an owner of that land. The worker makes the time and effort investment on the assumption that the owner will pay, but until the owner does pay, the owner is in a significantly superior power position. The improvements have already been made, and it will not significantly benefit the worker to demolish the work. Thus, unscrupulous owners could simply lock the tradesman out of the property, retain the benefit, and refuse to pay. Additionally, as a society we benefit by having improvements to buildings, and knocking them down as a resolution to disputes is economically inefficient. Because of the difficulties inherent in contract suits, most clearly time and cost, states decided to provide a simpler procedure for putting pressure on an owner to pay a claim, short of executing a judgment.

While the mechanics lien is overall a benefit to the worker, there are protections in the process for the owner. Generally, the worker must follow a strictly constrained process, and failure to follow that process will invalidate the lien. Some parts of that process are intended to prevent disputes from occurring, such as a structure of mandatory notices and disclosures that provide the owner an opportunity to ensure that the project's finances are being properly managed, in addition to being able to monitor the physical progress of the work.

Real property of the government is ordinarily not subject to the claims of private parties, and a purported state-law mechanic's lien against government land is generally void. However, the personal property of the state, namely the funds allocated for the project, are lienable, at least in some states. To protect subcontractors and suppliers of US federal government construction projects where the contract price exceeds $100,000.00, the Miller Act (40 U.S. Code 3131) requires general contractors to give a surety bond which guarantees payment for work done in accordance with the terms of the contract. Many state and municipal governments also require contractors on public works projects to be bonded.

Most states require that the claiming party has given noticification to the owner of their existence and claim via a Preliminary Notice to establish a right to file a mechanics lien. In addition, owners can protect themselves against frivolous lien claims by obtaining Lien waivers from the claimants.

The mechanics lien process can be of great value to contractors, subcontractors, materialmen and other related parties to a construction work in enforcing their claims, if done according to the laws of the various states, or the federal government. These parties are entitled to be paid for their material or labor contributions to the improve of real property. Most forms for the process can be obtained from local office supply stores, and a few computer programs exist to handle the process on a nationwide basis.

 

 

 

About Three Palms Real Estate – Your Professional Guides to Paradise
With so many choices it’s hard to navigate the volume of information available to you. Three Palms Professional Realtors will do the work for you. From beachfront Gulf Shores Condos to secluded family homes in Orange Beach, we know the best properties and we know the market. It’s important to us to educate our clients about the activities and amenities available in the area, as well as the types of properties we have to offer and financing options to help you make an informed decision that is right for you. Our mission is to determine your specific needs, desires and goals and to find the property and investment that is right for you.

Whether your dream is living on the water or just minutes from it, our Professional Guides to Paradise can get you here!

Call us at 1.866.980.PALM (7256) or Email Us to discuss the possibilities. Check out our favorite picks, or perform a custom search for Gulf Shores real estate or Orange Beach Real Estate.

Licensed in Alabama and Florida.

Gulf Shores and Orange Beach Area Info

Climate
The Gulf Coast Area has a mild climate with an average annual temperature of 67.4 degrees. The average temperature in January is 51.4 degrees. The average temperature in July is 81.8 degrees. The average annual precipitation is 67 inches, and the growing season is 292 days.

Education
Education is a fundamental block in building a bright future. The Gulf Coast Area opened a brand new high school during 1999 in Gulf Shores (ph. 251.968.4747). The area has two elementary schools; they are Gulf Shores Elementary (ph. 251.968.7375) and Orange Beach Elementary (ph. 251.981.5662). Gulf Shores Middle School (ph. 251.968.8719) offers an excellent curriculum in preparation for high school. All public schools are part of the Baldwin County school system. If you are interested in private education, you also have the option of Bayside Academy (ph. 251.955.5211), which includes age 3yrs – Grade 4.

Healthcare
The nearest hospital is South Baldwin Regional Medical Center (ph. 800.580.3627) located in Foley. South Baldwin Medical Center offers 24-hour emergency services (ph. 251.952.3400). Numerous medical professionals practice in the area providing both family practice and specialized care.

Airports
Corporate and Private air service is available in Gulf Shores from the Jack Edwards Municipal Airport, with a full Instrument Landing System and the longest paved runway being 7000 feet. The closest commercial air service is available in Pensacola, roughly 30 miles away, at the Pensacola Regional Airport (ph. 850.435.1746). Major carriers serving the airport are Continental, US Airways, Delta, Northwest, and American. Other commercial airports are located in Mobile (ph. 251.633.0313) and Gulf Port, Mississippi (ph. 228.863.5951).

Shopping
The area offers many shops ranging from casual apparel and beachwear to upscale fashion and specialty boutiques. If you are a bargain hunter, you can find 120 factory outlet stores in Foley.

Parks and Recreation
The nearest state park is the Gulf State Park (ph. 251.948.7275). The 6,000-acre park area offers campsites, picnic areas, 18-hole golf course, 825 foot fishing pier, 144 room hotel and convention center. Other parks in the area include Bon Secour Wildlife Refuge (ph. 251.540.7720), Meyer Park (ph. 251.968.4420), Johnnie Sims Park and Kids Park (ph. 251.968.4420), and Wade Ward Nature Park (ph. 251.968.4420).

State/Local Income Tax
For detailed information about Alabama income tax, contact the Alabama Department of Revenue, Individual and Corporate Tax Division (ph. 251.242.1000). In most instances, local governments in Alabama do not levy city, town, or county income taxes.

Property Taxes
Property (Ad Valorem) taxes are taxes on real business and/or personal property. “Ad Valorem” means “according to value”. For details, call the Revenue Commissioner’s office (ph. 251.943.5061, ext. 2840).