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Preserving mechanics lien claims
Notice of commencement
In order to protect the owner and mandate notice to the owner of potential lien
claimants, the notice of commencement must be prepared and filed before the project
commences.
The notice of commencement must be in affidavit form and include
- The legal description of the real property on which the improvement is to be made. for
purposes of this division, a description sufficient to describe the real property for the
purpose of conveyance, or contained in the instrument by which the owner, part owner, or
lessee took title, is a legal description.
- A brief description of the improvement to be performed on the property containing
sufficient specificity to permit lien claimants to identify the improvements;
- The name, address, and capacity of the owner, part owner, or lessee of the real property
contracting for the improvement;
- The name and address of the fee owner of the real property, if the person contracting
for the improvement is a land contract vendee or lessee;
- The name and address of the owner's, part owner's, or lessee's designee, if any;
- The name and address of all original contractors, except that if the notice of
commencement is recorded for an improvement involving a single- or double-family dwelling
and if more than one original contractor is involved, instead of listing each original
contractor, the owner shall state that multiple original contractors are involved in the
improvement;
- The date the owner, part owner, or lessee first executed a contract with an original
contractor for the improvement;
- The name and address of all lending institutions which provide financing for the
improvements, if any;
- The name and address of all sureties on any bond which guarantee payment of the original
contractor's obligations under the contract for the improvement, if any;
- The following statement:
"To Lien Claimants and Subsequent Purchasers:
Take notice that labor or work is about to begin on or materials are about to be
furnished for an improvement to the real property described in this instrument. A person
having a mechanics' lien may preserve the lien by providing a notice of furnishing to the
above-named designee and his original contractor, if any, and by timely recording an
affidavit pursuant to section 1311.06 of the Revised Code.
A copy of this notice may be obtained upon making a written request by certified mail
to the above-named owner, part owner, lessee, designee, or the person with whom you have
contracted."
- The name and address of the person preparing the notice;
- An affidavit of the owner, part owner, or lessee or the agent of the owner, part owner,
or lessee which verifies the notice.
The owner must do the following with the prepared notice of commencement: (a) file the
notice of commencement with the county recorder's office in the county where the project
is located; (b) provide a copy of the notice of commencement to the original
contractor(s); (c) post the notice of commencement at the project site; (d) amend the
notice of commencement to add any additional original contractors during the project; and
(e) provide copies of the notice of commencement to any potential lien claimant requesting
a copy.
If the owner fails to prepare and file a notice of commencement, lien claimants are not
obligated to file notice of furnishings.
- Notice of furnishing
Any potential lien claimant must prepare and provide to the owner (or the owner's
designee) a notice of furnishing in order to protect its lien rights. The notice of
furnishing must ne served on the owner within 21 days of the supply of labor or materials
to the project.
The notice of furnishing must contain the following information: (a) the name of the
owner or the owner's designee; (b) the name and address of the original contractor under
which the claimant is performing work or supplying materials; (c) the name and address of
the contractor the claimant has a contract with; (d) a reasonable identification of the
property; (e) the date the labor or supplies were first provided, and (f) the name and
address of the claimant. See form attached.
The notice of furnishing goes back 21 days, to protect any labor or supplies provided
21 days before the service of the notice of furnishing. Failure to serve the notice of
furnishing results in forfeiture of lien rights.
If you're late to serve the notice of furnishing, but you are still working or you have
worked within the last 21 days, file the notice of furnishing. Then, all work performed 21
days before the service of the notice of furnishing will be protected.
If you failed to file the notice of furnishing and your work is done, make a formal
request for a notice of commencement from the owner, by certified mail. If the owner doers
not respond within 10 days after receipt, the requirement to serve the notice of
furnishing may be excused.
- Affidavit of mechanics lien
In the event that the contract is breached and payment is not received, an affidavit
for mechanic's lien may be filed to place a lien on the project.
The affidavit of mechanic's lien must include (a) the amount due over and above all
set-offs, (b) a description of the property subject to the lien, (c) the name and address
of the person to whom the work was performed or the material provided, (d) the name and
address of the owner, (e) the name and address of the lien claimant, and (f) the first and
last dates that work was performed or supplies were provided. Form attached.
The lien must be filed with the county recorder's office where the project is located
within 75 days of the date last worked on the project, unless the lien is for a
residential dwelling (60 days) or a oil, gas, or injection well (120 days).
When is the last day for a materialman or contractor? A contractor's last day of work
is when its job is complete. Therefore, punchlist work will qualify for extending the last
day worked, whereas warranty work will not. For material suppliers the test is need. Was
the material needed to complete the job? If so, lien may be filed within 75 days of
delivery.
4. Service of mechanic's lien
Filing the lien is only half of what needs to be done to perfect the lien. After it is
filed, the lien must be served on the owner within 30 days of filing with the
county recorder. Service of the lien must be by some method whereby evidence of receipt by
the owner may be established (overnight delivery, certified mail).
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Akron, Ohio 44333
330-665-5445 fax 330- 665-5446
This site was last
updated on November 02, 2006 |