Mechanic’s Lien

The purpose of the Minnesota Mechanic’s Lien statute is to make sure contractors, subcontractors, materialmen, and any other parties that contribute to a construction project are paid for the finished work. In order for the lien to be acquired, the strict statutory requirements must be complied with.

To help ensure that the requirements are met, an experienced Minneapolis real estate attorney can help. At the Krogh Law Firm, there is a special emphasis on real estate matters because real estate is the building block of the firm. You will work with a real property specialist who has been certified for over 10 years to handle such matters. Factor in 17 years of practicing law and you have a powerful advocate in your corner.

An Effective Tool For Contractors

The day a project is substantially completed is the day the clock starts. A contractor has 120 days to file a lien against the property. When the job is not paid for, this is an important step in ensuring the labor and materials for the project are paid for.

It is important to note that a Mechanic’s Lien can only be filed against private property or a publicly owned project that has a private purpose. If the property is public property or the project is a public project, then bond laws come into play.

Once the lien is filed, the property owner no longer has a clear title. Not having a clear title means not being able to borrow against the property or refinance their mortgage.

How To File A Mechanic’s Lien

Several steps have to be taken before a contractor can hold a Mechanic’s Lien on private property:

  1. The contractor must notify the homeowner with a pre-lien notice of statement of the intent to file the lien. The property owner has a chance to settle the payment due at this moment.
  2. If the property owner doesn’t pay the bill before the 120 days are up, then the contractor files the lien.
  3. The state must be provided with critical information. This information includes the property address, amount owed on the job, a legal description of the property, the name of the owner, the name of the party who signed the contract, the first date work was performed, the last date work was performed, and a statement saying the requirements for a pre-lien notice were met.

Legal Guidance Where You Need It Most

The moment that you believe you are going to need to file a Mechanic’s Lien, it is ideal to have a Minneapolis real estate attorney by your side from the start. This helps ensure you meet the requirements of the pre-lien notice if you are a contractor who is able to file a Mechanic’s Lien. Your attorney also lets you know when it is time to file and that everything is as thorough as possible. The more thorough, the better, because the court will look at a number of factors, including the contract terms.

Minnesota Property Owner Rights

Property owners have rights as well. For instance, they have the right to dispute the amount owed if they feel it is incorrect. They can state the reason for the dispute, including issues with construction quality. They will have the burden of proof in their dispute, but it is their right to provide that proof. There are times when property owners have legitimate disputes regarding their non-payment of services received. It is always best to retain an attorney no matter what side of the matter you are on.

Contact A Minneapolis Real Estate Attorney

When you do a job, it is important that you are paid for it. A Mechanic’s Lien can help you recover what is rightfully yours. However, you do not want to do this on your own because the process can be as complicated as the statutory requirements that must be adhered to. When you have the Krogh Law Firm, P.A. in your corner, you have someone fighting for your right to get paid for the labor and/or materials you put into the project. To learn more, call 651-631-0500 to request a free consultation.