First of all, each jurisdiction can be different from the next. But the
following is basic in most if not all jurisdictions.
1. State law governs how liens are filed ad recorded against real property
(real estate).
2. Liens are filled in the county courthouse with the county clerk (some
jurisdictions may call the court and the clerk something different - like
Superior Court).
3. State laws give certain workers rights and privileges to be sure these
artisans get paid, which results in a privilege on a piece of real estate
to secure the work performed by that craftsman. Of course, the work must
have been performed on that certain piece of real estate. However, not all
types of work are protected with lien rights. State statutes enumerate the
type of work performed for which there is protection available in the form
of a lien. Consequently, it is important to do a bit of research to see
what protections are afforded laborers and craftsmen in your state.
4. Then there are time restraints attached to the filing of a lien. Some
jurisdictions allow 60 days from the last work performed on the job to file
a lien. Others my only provide a 30 day window. Again one must check the
actual statute in your state.
5. A 'lien' is usually an affidavit which gives the name and type of work
performed by the party not yet paid for his work; the name of the owner of
the property; the name of any general contractor ; the address of the
property (sometimes there might be a requirement of a more specific legal
description of the real estate- like square and lot number and subdivision
name, etc); the amount due on the job; and possibly the attachment of an
invoice for the work .
6. The affidavit usually has to be notarized and filed with the clerk of
court.
7. Then notice must be provided to the owner and/or general contractor -
usually by certified mail (with return receipt requested so you can prove
delivery). Usually this amounts to a cover letter and a certified copy of
the lien affidavit.
8. Once the lien is filed and notice is sent to the other party or parties
(owner and general contractor if applicable), be sure to keep a copy
stamped by the clerk showing that you made the filing.
9. Now, one the following can happen:
a) the owner or general contractor will contact you and ask for a payoff
amount (amount due on the job plus any costs associated with the lien
filing);
b) the owner or contractor will contact you and threaten to sue you if you
do not remove then lien immediately, claiming some law or event that makes
your lien invalid (like you waited too long to file, or you signed a lien
waiver when you took on this job);
c) nothing happens for a long time because the filing of the lien only
creates your privilege against the real estate and doesn't actually force
anything to happen right away; in time, however, there will be a sale of
something that will force the owner to come to you;
d) however if there is a sale pending or a loan about to be signed, then
there will be more immediate action likely.
A way to begin your research in your state is to Google lien rights and put
in your state name. You could also go to the county courthouse and nicely ask
one of the clerks to show you a lien affidavit that was filed previously so
you can see what was done and use this as a template.
And, of course, if you feel that this may be necessary on a more frequent
basis, you could hire a lawyer to file your first one (to make sure it is
done right) then use the copies he provides you to do-it-yourself there
after.
