The Law According to Moses: Put a Lien on It.
By Ambrose Moses, III
Contractors! You folks are not protecting yourself out there. Let’s talk about the basics of Ohio’s Mechanics Lien Laws.
How can contractors get liens for work or materials provided? When someone improves property and is not paid for the work or materials provided, they are considered a creditor. Ohio law grants that creditor a lien upon the improved property in the amount of the unpaid billing. That is the simple concept behind Ohio’s Mechanics Lien Law.
The details of the simple concept of the mechanics lien can be complex. Owners need to know how to avoid mechanics liens on their property and how to eliminate liens once they are filed.
At the same time, parties who have provided improvements to real property must understand the requirement for filing a lien in order to maximize their chances of getting paid.
What is a “mechanics lien”? Ohio law provides contractors, laborers and materialmen with mechanics lien claims to secure priority in payment for the value of work performed and materials furnished in constructing, improving, or repairing a building or other structure. A mechanics lien attaches to the land as well as buildings and improvements to the land.
Who is entitled to file a mechanics lien? Ohio Revised Code §1311.02 provides a mechanics lien to contractors, laborers or materialmen who do work in furtherance of a contract to improve real estate entered into with the property owner, a lessee or a general contractor. In addition, mechanics liens can be obtained by architects, engineers, and demolition companies.
How does a claimant perfect its mechanics lien? In order to perfect a mechanics lien, the lien claimant must prepare and timely file an affidavit with the county recorder in the county where the property is located.
Ohio law details what the affidavit must state and provides time limits for the mechanics lien claimants to file the affidavit of mechanics lien and to serve the affidavit upon the owner.
Disputes happen. No amount of planning can eliminate all possible disputes. Owners and contractors alike should be well aware of the provisions of the mechanics lien statute to ensure they take timely action to protect their rights.
Because this is a complicated area of the law, legal assistance is often advisable. If you cannot prepare an affidavit for mechanics’ lien in house or have questions about doing so, make sure that you consult with legal counsel.
Protect yourself.
Ambrose Moses, III is an attorney with Moses Law Office. Email: info@MosesLaw.pro. Telephone: (614) 418-7898.
