Issuing a Maine preliminary notice is a proven method to expedite payments on construction projects. This document, generally sent to the property owner at the project’s outset, serves as an essential notification. To maximize its effectiveness, understanding Maine’s specific guidelines and compliance requirements is crucial.
Navigating the intricate regulations surrounding preliminary notices can be challenging. Here’s a breakdown of the key rules and considerations for properly sending a preliminary notice in Maine.
Key Takeaways
- Preliminary Notices Are Not Required by Law: In Maine, preliminary notices are generally not mandatory, but they can help protect lien rights, especially in owner-occupied properties or when dealing with future property purchasers.
- Timely Filing Protects Your Claim: To safeguard your mechanics lien rights against a bona fide purchaser, file your preliminary notice with the Registry of Deeds as soon as work begins. Refile every 120 days for continued protection.
- Notice Can Be Sent in Various Ways: Maine law doesn’t specify how to deliver a preliminary notice, so it’s important to choose a method that ensures the notice reaches the intended recipient, with certified mail being the recommended option.
Do I Need to Send a Maine Preliminary Notice on Private Projects?
Maine preliminary notice are not typically mandatory, but there are specific scenarios where sending one can safeguard a lien claimant’s rights or help prove the owner’s consent.
Although Maine law does not require such notices, filing one with the Registry of Deeds can protect the lien claimant’s interest against a future bona fide purchaser. If this notice isn’t filed, or if the claimant hasn’t begun legal action to enforce the lien, a new property owner can take possession of the property without the lien.
For owner-occupied properties (including residential, commercial, and industrial projects where the owner lives on-site), sending a preliminary notice is optional but can be beneficial.
This notice can fulfill two key functions:
- It helps confirm that the property owner was aware of and approved the work or materials provided, which is required for lien claims in Maine.
- Without a notice, the property owner is only responsible for paying the general contractor. If the owner has already paid the general contractor in full, the lien claimant may not receive any payment.
When do I Need to Send a Maine Preliminary Notice?
To ensure maximum protection for a claim against a bona fide purchaser, the notice should be filed with the Registry of Deeds promptly after work begins. This notice must be refiled every 120 days to maintain its effectiveness. Similarly, for owner-occupied residential projects, sending the notice as early as possible is crucial for optimal protection. Since the lien amount is limited to the remaining balance owed to the general contractor when the notice is received or the mechanics lien is filed (whichever comes first), it’s advisable to send the notice promptly.
What if I Send the Maine Preliminary Notice Late?
If the lien claimant fails to file (or re-file) the notice before the property is sold, the new owner acquires the property free of the lien. However, neglecting to file the notice does not affect the validity of any lien filed later. Sending a preliminary notice late on an owner-occupied residential project may not impact the lien, as it is not a mandatory requirement, and there is no legal penalty for not sending it. If the property owner has already paid the general contractor, the lien claimant’s claim may only cover the remaining balance owed to the general contractor, if any.
How Should the Maine Preliminary Notice Be Sent?
To protect a claim against a bona fide purchaser, the notice should be filed with the Registry of Deeds. For owner-occupied residential properties, the notice must be delivered to the property owner. Maine law does not prescribe a specific method for delivering this notice, so it can be provided to the owner through any means. However, it is generally recommended to send the notice via certified mail to ensure proper documentation.
Do I Have to Send the Maine Preliminary Notice to Someone Other than the Owner?
To secure a claim against a bona fide purchaser, the notice should be recorded in the Registry of Deeds. The notice for an owner-occupied residence only needs to be delivered to the property owner.
Is the Maine Preliminary Notice Requirement Met When Sent or Delivered?
Notices are typically deemed delivered once they are sent and considered officially recorded once they are filed.
Do I Need to Send a Maine Preliminary Notice on Public Projects?
No, Maine does not mandate a preliminary notice to protect a claimant’s ability to file a bond claim.
About Maine Preliminary Notices
Preliminary notices are generally not required in Maine, but there are certain situations where sending one can be crucial for protecting mechanics lien rights. Although not mandated by law, filing a notice with the Registry of Deeds can help preserve a lien claimant’s rights against a subsequent bona fide purchaser. If the notice is not filed (or an action to enforce the lien hasn’t started), the new owner may take the property free of the lien. Additionally, by serving a Notice of Intent to Lien on an owner-occupied project, a claimant can turn Maine into a “full-price” lien state, rather than one based on the “unpaid balance.”
For owner-occupied residential projects, as well as commercial, business, or industrial projects where the owner lives on-site, a preliminary notice is optional but may be beneficial.
This notice serves two key functions:
1) It helps a lien claimant prove that the property owner was aware of and approved the labor or materials provided (this can be important for any project).
2) It ensures that the property owner is liable for amounts still due to the general contractor. Without notice, the owner is only responsible for paying the general contractor, meaning if they’ve paid in full, lower-tier lien claimants may not get paid.
How to Send a Preliminary Notice in Maine?
Download the Free Notice Form
Start by downloading the generic preliminary notice form. This form is suitable for use in Maine as well as other states where a preliminary notice isn’t mandatory. It will include essential details about your company for the paying parties.
Fill Out the Notice
Be sure to fill out the form with correct and accurate information. Mistakes in your Maine preliminary notice can lead to payment problems at the end of the project, so it’s crucial to double-check all details before submitting.
Deliver the Form
Since Maine doesn’t have specific rules for delivering a preliminary notice, you can send it in any way that works for you. There are no state-specific requirements, so choose the method that best ensures the recipient receives the notice.
Get in Touch
While Maine doesn’t require preliminary notices in most cases, sending one can be an important step to protect lien rights and ensure timely payment on construction projects. Understanding the specific rules and guidelines for when and how to send these notices is key for contractors, suppliers, and other lien claimants.
Whether for owner-occupied properties or preserving a Maine mechanics lien against a future buyer, following these procedures can help safeguard your interests. By acting quickly and accurately, you can avoid payment issues and strengthen your position in any construction project.
At CRM Lien Services, we have been serving customers across the country with required reference documentation for lien claims since 1986. We provide expert guidance, helping contractors and suppliers safeguard their payment rights through seamless and timely preliminary notice and lien filings.
We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a preliminary notice and mechanics lien, give us a call or shoot us an email.
