Last month, we talked about the differences between 1st Tier and 2nd Tier Claimants and reiterated that to file your mechanic’s lien and notice letters timely, first you really need to know whether or not you are a 1st Tier or 2nd Tier Claimant.  Another important difference to understand is whether you are working on a residential or commercial project.

Definition-Residential

A single family house, duplex, triplex, or quadruplex or a unit in a multi-unit structure used for residential purposes that is owned by one or more adult persons and is used or intended to be used  as a dwelling by one or more of the owners.

As an example, work on a residential house or multiunit structure is not necessarily a “Residential Project” when it comes to mechanic’s lien laws.  Specifically, if it is a spec or tract house and the builder or general contractor who owns the house does not intend to occupy it as a primary dwelling then, technically, this type of project falls under the mechanic’s lien rules for commercial projects.

Another easy hint is, does a corporation own the house or is it for an investment?  If so, it can never be “residential” for the purposes of the mechanic’s lien laws.

Once you know what type of Claimant you are and whether or not you are working on a residential or commercial project, refer to the Deadline Chart, within this email, for the current timeline on the lien process.

REMEMBER -   IF YOU ARE A 2ND TIER CLAIMANT OR ARE WORKING ON A RESIDENTIAL PROJECT, YOUR NOTICE LETTERS AND AFFIDAVITS ARE DUE 1 MONTH EARLIER THAN 1st TIERED CLAIMANTS ON COMMERCIAL PROJECTS.

November Mechanic’s Lien Deadlines

Commercial Projects

1st Tiered Claimant:

Your notice letters are timely for work done any time after August 1, 2009.
Your mechanic’s liens are timely for work done any time after August 1, 2009.

2nd Tiered Claimant:
Your notice letters are timely for work done any time after September 1, 2009.
Your mechanic’s liens are timely for work done any time after August 1, 2009.

Residential Projects

For all Claimants:

Your notice letters are timely for work done any time after September 1, 2009.
Your mechanic’s liens are timely for work done any time after August 1, 2009.