Updated: September 6, 2024
A mechanic’s lien is a powerful tool that can help contractors, subcontractors, and suppliers secure payment by placing a claim on the property in question. In some cases, a lien can even result in the property being sold to recover owed funds.
Filing a mechanic’s lien can provide a more efficient path to payment resolution, saving time and money compared to drawn-out legal proceedings. However, it’s important to be aware of the potential pitfalls when filing on your own. Mistakes like missing key deadlines, neglecting to send preliminary notices, or using incorrect information can jeopardize your claim and delay payment. Whether you choose to handle the filing yourself or seek professional assistance, attention to detail and timely action are essential. For many, partnering with a provider like Northwest Lien can streamline the lien filing process, ensuring accuracy and compliance while freeing you to focus on your core business activities. In this guide, we’ll uncover the top mistakes to avoid when filing a mechanic’s lien.
When choosing how to file your mechanic’s lien, there are two options:
Let’s explore both options.
If you prefer a DIY approach, filing a mechanic’s lien yourself can save you money on professional fees. However, this option calls for a solid understanding of Washington state’s lien laws and attention to detail. First, you’ll need to ensure you’re eligible. In Washington, those who provided labor, services, materials, or equipment for repairs, remodeling, or alterations may file a lien against the property if payment is not received. Additionally, no lien waivers should be in effect.
Once you’ve determined your eligibility, you’ll next want to send preliminary notice. This is a formal document sent to the property owner and prime contractor, if applicable, stating your intent to file a lien in the event payment isn’t received. In Washington, preliminary notice needs to be sent within 60 days of first furnishing goods or services. Lastly, you must meet the lien filing deadlines. You have 90 days from the date of your last contribution to the project to file the lien with the county recorder’s office where the property is located. It is also important to note that once you receive payment, you must promptly release the lien. Managing these tasks can be time-consuming, especially if you’re busy with other projects. Read more about how to file a mechanic’s lien in Washington, and contact Northwest Lien today for assistance filing your lien.
Given the complexities involved with filing a mechanic’s lien, many contractors and subcontractors choose to use professional services like Northwest Lien. This approach allows you to focus on your core business activities, while our experts handle the intricacies of preparing, filing, enforcing, and releasing liens. Professional filing ensures compliance with all legal requirements and deadlines, reducing the risk of errors and administrative burdens.
Expert assistance is particularly valuable for those who may need to file many liens each year. By handling all preliminary notices and adhering to crucial deadlines, Northwest Lien can help ensure a streamlined process while allowing you to concentrate on your business operations.
In Washington state, a preliminary notice (also known as a notice of intent or notice of right to lien) must be sent to property owners within 60 days of the first day of furnishing labor or materials on commercial jobs. For single-family residential projects, this notice should be sent within 10 days, per RCW 60.04.031. This notice informs the owner of your involvement in the project and your right to file a lien if payment is not received.
It is easy for this step to be overlooked if you’re not familiar with the lien filing process, as the preliminary notice occurs before the actual lien filing. When this notice is missed or sent late, it can spell trouble for your filing by negating or limiting your claim.
Another common mistake when filing a mechanic’s lien is missing important deadlines. To remain eligible, you must file your lien within 90 days of stopping work on the project (after sending the necessary preliminary notice). If you file your lien after the 90-day deadline, your claim will be rejected. Additionally, once filed, you have a period of eight months to enforce the lien before it expires. If you’re managing multiple projects and finding it difficult to stay on top of deadlines, contact Northwest Lien for help.
Because there are strict requirements regarding the formatting and details of a lien submission, it’s essential to keep documentation including any contracts, invoices, or proof of delivery needed to support and strengthen your case. Your lien filing must accurately state the following details:
Using incomplete or incorrect information when filing a mechanic’s lien can have serious repercussions. Errors such as incorrect property details or inaccurate claim amounts can invalidate the lien. This not only jeopardizes your legal protection but also undermines your leverage. Beyond that, such mistakes can result in your case being dismissed in court, leaving you vulnerable to potential lawsuits and damage claims from the property owner. In the worst cases, intentionally misleading information could expose you to penalties for filing a fraudulent lien, further complicating your situation. It’s crucial to ensure every detail is accurate to safeguard your interests and maintain your professional standing.
Forgetting to release the lien after receiving payment is another common mistake. Washington State Law RCW 60.04.071 requires that you deliver a release once payment is made. If you fail to release the lien after you receive payment, you may encounter:
In essence, if you unjustifiably delay your lien release, you may end up paying not only for the release itself but also for all associated legal costs, attorney fees, and any damages resulting from the delay. At Northwest Lien, we handle the lien release process promptly after payment is received, allowing you to focus on your business.
When considering how to file your mechanic’s lien, it’s important to be mindful of where common mistakes occur. From sending preliminary notices to releasing the lien after receiving payment, understanding these key areas can significantly increase your chances of a successful lien claim. For professional lien filing services, contact our expert team at Northwest Lien today.
