November Lien Law Update: Lawmaker wants to close property lien loophole

Lawmaker wants to close property lien loophole

In Grand Rapids, MI, a state lawmaker is working to change the mechanics lien laws. Currently, you're required to be a licensed professional to file a mechanics lien. The new law will require those filing liens to prove they are licensed before their lien can be filed. The goal is to stop unlicensed contractors from filing liens and creating havoc for homeowners.

Aspen Club faces second foreclosure action

Denver, CO general construction firm PCL Construction Services Inc. has launched a legal action to gain more than $19 million owed on a mechanics lien. In addition, they are filing a breach of contract claim against the project. Designed as a residential and fitness club, the Aspen Club project is struggling with liens not only from the general contractor, but from many of the subcontractors as well as the bank holding the mortgage. No action will be taken in foreclosure until the court determines the priority of the liens and mortgages, an interesting question for all involved as this will determine who gets paid and who gets life in the cold.

New law protects public officials from fraudulent liens

A growing trend in recent years is the filing of fraudulent liens. A person is only required to fill out a form correctly to file a lien and, even if it is later removed, create a huge hassle for the person the lien is filed against. An investigation into the depth of the issue in Tennessee showed that over $2.1 billion in fraudulent liens have been filed. The new law is designed to expedite the process of clearing liens off public officials, who are subject to fraudulent liens from prisoners and other activists.

Contractors filing $17 million in mechanics liens for work on Texas resin-processing plant

Contractors say in court papers they are owed more than $17 million for work they've done to help build an Italian company's resin-processing plant along the Nueces Bay shoreline in Texas. Nueces County court records show 28 mechanics liens have been filed against the company since November 2015. All but five have been resolved, but those five are demanding in court papers to be paid.

Keeping up with changes in the law is one of the important aspects of our work at National Lien & Bond. We make sure our clients are following the right processes for mechanics liens in every jurisdiction and are able to take advantage of the latest changes and improvement in the law. We also ensure clients are informed on changes to other construction laws that may affect them in the future.