Mechanics lien

As a business owner, there are joint check agreement when providing a service to a client. One of the main expectations is that you will be paid for services rendered. There are cases where the payments are not forthcoming even after every effort have been done to receive payment.Mechanics lien might be the only way that the money owed is received.

What does a mechanics lien do? A mechanics lien is a formed that is filed with a local civil court, the DMV, the registrar’s office or another entity that records property. In its most basic terms, it prevents the owner from selling the property that the lien is attached to until the balance owed to the service provider is satisfied. The service provider can be an auto mechanic, a plumber, an electrician, a painter, a landscaper pretty much any business that provides a service for a specific property. Once in place, the owner will have to pay the service provider if they ever want to sell the property.

Filling a mechanics lien can be a little tricky. Each locality operates a little differently when it comes to filing the forms to attach a mechanics lien. Some localities require proof of multiple attempts to collect the monies owed before the form is accepted for filling. The best way to insure that the legal form will be accepted for filing is to know your localities rules when trying to attach a lien to someone’s property and acting in the manner prescribed. There may be a court case involved with filing a mechanics lien or it simply may be a hearing in front of the clerk of court. These legal forms to file mechanics lien might be available from the local court for free. Finding legal forms online that are well suited to the situation may also be possible, these forms are available at all office supply stores for a fee.

As part of the mechanic’s lien, there are fees that are permitted that can also be attached. Legal fees to include the cost of filing the legal forms to institute the lien can be recovered as well as any attorneys fees that may have been paid. Collection fees can also be recovered and so can interest on the original principle. The best way to insure that all the additional fees can be recovered records should be maintained detailing all correspondence and other actions that have been taken in the case.

 

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