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Friday 28 July 2017
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THINGS YOU NEED TO KNOW ABOUT MECHANICS LIEN IN OHIO

How many times have you been in this situation: You are owed money on a construction project and are thinking of filing a mechanic’s lien. But you know that after filing it there will begin a serious dispute process, and probably involving the hiring of lawyers on each side. You would like to send a notice to the other side telling them that if it is not paid, more serious steps will be taken. Well, there is a form to be used in this situation. In my experience, this is a very popular form–so much so we would like to make it available to the construction industry.

This form below warns the owner that you will be filing a mechanic’s lien if payment is not made within ten days. Hopefully, it will create a serious dialogue for settlement. Come up with your bottom line amount to settle and be prepared to offer it to the owner if he or she is negotiating in good faith. Remember that the last thing an owner wants is a lien on their property: it jeopardizes title, interferes with their relationship with the construction lender, and prevents refinancing or sale. This Notice is worded in a non-threatening manner so as to capitalize on this situation, with the owner knowing that you are required by law to file a lien within a set period of time or lose your lien rights.

WHO CAN USE THIS FORM? All persons, whether general contractor, subcontractor, or supplier.

HOW TO SERVE: There is no need to file this with the court or record with the recorder’s office. It is simply served by mailing.

WHO TO SERVE: If you are a general contractor, serve the owner and construction lender. If you are a subcontractor or supplier, serve the owner, general, and construction lender.

HOW TO SERVE: Although not required, it is recommended for its effectiveness to be served by certified mail.

WHEN: Serve ten days before you file or record the mechanic’s lien. Remember, it does not extend the time to file a mechanic’s lien.

NOTARIZED? No.

COPIES: The original signed copies are served. Keep an extra copy for your records.

CERTIFICATE OF MAILING. Use a standard Proof of Service form. Sign this Proof (it is like a certificate of mailing) and staple it to the form so you have proof it was mailed to the various persons or entities.

MARGINS AND FONT. This is a Word document so use the following margins so it prints out properly: Top: 18 pt; Bottom: 22 pt; Left: 58 pt; Right: 58 pt. Type size is 12.

HOW TO USE? Cut and paste the form into a new Word document.

WHICH STATES?

Use this notice only in the following states: Alabama, Alaska, Arizona, Florida, Idaho, Indiana, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, and West Virginia.

As to California, you can use it until further notice. California is in the process of amending its mechanic’s lien statutes which will require a specific notice. Check our web site for that new form.

SAMPLE FORM STARTS HERE

NOTICE OF INTENTION TO FILE A MECHANIC’S LIEN (General)
(This is not a Mechanic’s Lien, nor a reflection on the credit of any contractor)

__________________________________________________________________________________
Via Certified Mail

TO OWNER:

_________________________________________________
(name(s))

________________________________________________
(address–no. and street)

________________________________________________
(address–city, state, zip)

FROM GENERAL CONTRACTOR:

_______________________________________________
(name(s))

_______________________________________________
(address–no. and street)

_______________________________________________
(address–city, state, zip)

______________________________________________
(fax/phone)

Please take notice that the undersigned lien claimant intends to file a Mechanic’s Lien against your property if payment is not made for moneys owed as follows:

PROJECT NAME: __________________________________________________________________________________

PROPERTY SUBJECT TO LIEN (common street address or other description):
__________________________________________________________________________________

(1) General description of construction services furnished by Lien Claimant:
_________________________________________________________________________________
_________________________________________________________________________________
________________________________________________________________________________

(2) Amount due: Through _________ (date) is $ _____________ after just credits (total performed, with extras of $ ___________ , less payments of $ ____________ ). Unpaid invoice(s) attached. Attorney’s fees and court costs will also be requested.

The above-described work was provided to your property, at your instance, by the Claimant. If payment is not made within ten days (10) of receipt of this demand, Claimant intends to file a Mechanic’s Lien, without further notice. If you have any questions or wish to make payment arrangements, please call immediately to discuss.

Dated: _____________

_______________________________________________
(Signature and Title)

If you like this post and you want to know more about Ohio mechanics lien law, then Please visit this link READ MORE…