Mechanics Lien Connecticut Guide

Mechanics Lien Connecticut Guide

In Connecticut, when contractors or suppliers aren’t compensated for their work on a construction project, they can file a mechanics lien to secure the payment they’re owed. This legal tool gives the unpaid party a claim against the property as collateral.

A subcontractor’s mechanics lien cannot exceed the amount the owner has agreed to pay through the contractor, considering any bona fide payments made by the owner before the lien notice is received.

At CRM Lien Services, we specialize in ensuring you get paid quickly and reliably. We can prepare and file mechanics liens for you in accordance with Connecticut law, taking into account Connecticut construction lien law and state-specific rules and regulations, including the need for an adequate and ascertainable description of the real estate.

Below are the essential guidelines, procedures, and deadlines for filing a mechanics lien Connecticut.

Mechanics Lien Connecticut

Key Takeaways

  • Broad Eligibility with Specific Requirements Most construction professionals in Connecticut, including contractors, subcontractors, suppliers, and licensed design experts, can file a mechanics lien for claims of ten dollars or more. To qualify, the provided labor or materials must physically enhance the property or be essential to its improvement, construction, repair, or subdivision. Subcontractor claims subject to certain conditions, such as the terms of their agreement with the property owner, can affect their eligibility to file a mechanics lien.
  • Strict Filing Deadlines and Notarization Standards A mechanics lien must be filed within 90 days of the last day services or materials were provided. Additionally, the lien must be sworn under oath and properly notarized, with only the claimant themselves authorized to sign the lien, ensuring its legal enforceability.
  • Comprehensive Service and Enforcement Procedures After filing, a true and attested copy of the lien must be served to the property owner within 30 days using approved methods, such as through a state marshal or certified mail. To enforce the lien, claimants must take legal action within one year of recording the lien, as the enforcement period cannot be extended.

What is a Mechanic’s Lien?

A mechanics lien is a legal remedy that allows contractors, subcontractors, and suppliers to secure payment for their work and materials provided on a construction project. In Connecticut, a mechanics lien is a type of security interest that creates a claim on a property in case of unpaid bills. This powerful tool is essential for protecting the rights and interests of construction industry participants, including contractors, subcontractors, suppliers, laborers, materialmen, architects, engineers, and surveyors.

By filing a mechanics lien, these professionals can ensure they receive the compensation they deserve for their contributions to a construction project. The lien acts as a safeguard, providing a legal claim against the property and increasing the likelihood of payment. This is particularly important in the construction industry, where payment disputes are common, and securing payment can be challenging.

Who Is Eligible to File a Mechanics Lien in Connecticut?

Most individuals involved in a construction project in Connecticut have the right to file a mechanics lien, provided the claim is for at least ten dollars in labor, services, or materials. Subcontractor claims cannot exceed the amount the owner has agreed to pay, considering all bona fide payments made before the lien notice is received.

Connecticut law uses a two-part test to determine if someone qualifies for mechanics lien rights. The “physical enhancement test” requires that the labor or materials physically enhance the property, contribute to its improvement, or are essential to the project. Additionally, the services or materials must be related to the construction, repair, removal, or improvement of a building or land subdivision. The cost of rental equipment is also included in this qualification.

What Is the Deadline for Filing a Mechanics Lien in Connecticut?

To ensure a Connecticut mechanics lien is enforceable, it must be filed within 90 days after the last day the claimant provided services or supplied materials. Failing to file such a lien within the specified timeframe can result in its invalidation.

Care must be taken when determining the final furnishing date. In the recent Connecticut case, Constr. Ken-Nection Inc. v. Cipriano questions whether work done following a month-and-a-half delay on the major portion of a project qualifies as “substantial” work. This decision is crucial for accurately calculating the deadlines for filing a mechanics lien in Connecticut.

Is Notarization Required for a Connecticut Mechanics Lien?

Certainly. In Connecticut, a mechanics lien must be sworn under oath and properly notarized to be legally enforceable. The state places a strong emphasis on the “under oath” requirement, with courts consistently ruling that a mere notary acknowledgment does not suffice. Such mechanic’s lien must be sworn under oath and properly notarized to be legally enforceable.

The lien document must clearly state that it is made “under oath,” and the notary must conduct an oath-taking process during notarization, as illustrated in the case of Louis Gherlone Excavating Inc. v. McLean Construction Company Inc. Additionally, who signs the mechanics lien is crucial in Connecticut. In Kesco LLC v. 201 Salem Tpk LLC, the court invalidated a lien because it was signed by the claimant’s attorney instead of the claimant themselves. Consequently, only the lien claimant is authorized to sign the mechanics lien in Connecticut.

Do I Need to Notify Anyone Once the Mechanics Lien Is Filed in Connecticut?

Certainly. In Connecticut, once you file the Certificate of Lien with the town clerk, you must serve a verified copy of this certificate to the property owner within 30 days. The priority and legal standing of the filed lien can be influenced by the presence of other such mechanic’s lien, which may affect the rights of subcontractors and the implications on property ownership.

Serving the Notice:

  • Same Town Residence: If the property owner or the original contractor lives in the same municipality as the property, the notice can be delivered by any impartial individual, state marshal, or authorized officer. This can be done by handing it directly to the owner or contractor or by leaving it at their usual home address.
  • Different Town Residence: If the owner or original contractor resides in a different municipality, the notice must be sent via registered or certified mail to their residence. If the mail is returned as unclaimed, the notice must then be published to inform the owner or contractor.

Adhering to these service methods ensures that the lien is properly communicated, maintaining its validity under Connecticut law.

Can a Mechanics Lien Be Filed on a Condominium in Connecticut?

connecticut mechanics lien

A mechanics lien can be placed on an individual condominium unit just as it can on any other property. When seeking to file a lien against an entire condominium development, it is essential to serve each individual unit owner separately.

Who Cancels the Connecticut Mechanics Lien When I Get Paid?

Connecticut law does not detail who is responsible for eliminating a mechanics lien once payment is made, nor does it specify the timeframe for filing such a cancellation. However, if a lien is deemed invalid, the lienholder is required to remove it within 30 days after receiving written notification from an interested party asserting its invalidity. Failure to comply with this obligation may result in penalties.

Who Must Send a Preliminary Notice in Connecticut?

Connecticut does not mandate sending a preliminary notice before starting work on a private construction project.

Nonetheless, the main contractor has the option to submit an affidavit to the town clerk in the municipality where the property is situated. When this affidavit is correctly filed, subcontractors and suppliers must deliver a copy of their Notice of Intent to Lien to the general contractor instead of solely to the property owner.

Any lien claimant without a direct contract with the property owner is required to send a Notice of Intent to Lien to the owner. Additionally, if an affidavit has been filed with the town clerk, the claimant must also notify the original contractor.

What Happens if a Connecticut Preliminary Notice Is Sent Late?

The affidavit filing is optional in Connecticut, meaning that an original contractor’s lien rights remain intact even if they choose not to submit an affidavit. However, without filing an affidavit, the original contractor does not have the right to receive a copy of any subcontractor’s, supplier’s, or material provider’s Notice of Intent to Lien.

Requirements for Filing a Mechanics Lien in Connecticut

Connecticut mechanics lien regulations outline detailed and often intricate criteria that construction professionals must adhere to when filing a lien claim. Follow this comprehensive, step-by-step guide to navigating the mechanic’s lien process in Connecticut effectively.

Lien Rights

Connecticut law employs a dual-criteria approach to establish whether a party qualifies for mechanics lien rights. The first criterion, the “physical enhancement test,” mandates that the provided services or materials must either physically improve the property, prepare it for improvement, or be a crucial element in the overall enhancement plan.

Additionally, the labor or materials must be associated with the construction, erection, demolition, repair, or enhancement of a building or its attachments or involved in the subdivision or improvement of any land parcel. The inclusion of rental equipment value is also permitted under this provision.

Generally, Connecticut does not stipulate that a lien claimant must hold a specific license to file a valid mechanics lien. However, on residential projects, only registered contractors who comply with the Home Improvement Act or the New Home Construction Contractors Act possess lien rights. Licensed professionals are exempt from adhering to these acts when performing work within their licensed scope.

Filing Deadlines

To maintain validity, a mechanics lien in Connecticut must be filed within 90 days following the last day the claimant provided services or supplied materials.

Notice Requirements

Connecticut does not impose preliminary notice obligations before commencing work on a project. Nevertheless, if the general contractor submits an affidavit within 15 days of starting the project, subcontractors and suppliers must then serve a Notice of Intent to Lien to both the general contractor and the property owner.

All lien claimants without a direct contract with the property owner must deliver a Notice of Intent to Lien to the owner and to the original contractor if an affidavit was filed prior to submitting the Certificate of Lien.

Lien Form Requirements

A valid mechanics lien Connecticut must include the following details:

  • Property Description: A clear and precise description of the property.
  • Claim Amount: The total amount owed to the claimant.
  • Property Owner: The name of the property owner.
  • Date of First Furnishing: The date when the claimant first provided labor or materials.
  • Statement of Due Amount: A declaration that the claimed amount is rightfully owed.

Additionally, the lien form must be personally signed by the claimant, notarized, and affirmed under oath.

Recording Requirements

The completed mechanics lien form must be submitted to the recorder’s office in the Connecticut county where the property is located. The lien can be filed in person, by mail, or via FedEx, ensuring that the appropriate filing fees are included. When mailing or using FedEx, include a self-addressed stamped envelope with instructions for returning copies of the lien.

Connecticut law also mandates that within 30 days of filing the Certificate of Lien with the town clerk, a true and notarized copy of the certificate must be served to the property owner. Neglecting this step can render the lien claim invalid.

Lien Priority

In Connecticut, mechanics liens take precedence over any encumbrances that arise after the labor or materials giving rise to the lien were provided. The priority of the mechanics lien is established at the time the labor or materials are furnished, not when the lien is recorded. Liens originating subsequent to a recorded encumbrance will not have priority over it.

Thus, a mechanics lien supersedes any subsequent encumbrances, including mortgages, that are created after the services or materials were supplied. Conversely, a mortgage executed and recorded before the provision of labor or materials retains priority over the mechanics lien. Mechanic’s liens originating prior to a recorded encumbrance will have priority over it.

All mechanics liens share the same priority level. If the total amount of multiple mechanics liens exceeds the available lienable funds, the claims are distributed on a pro-rata basis.

Enforcing the Lien

A mechanics lien Connecticut remains valid for one year from the date it is recorded. If the debt remains unpaid, the claimant must initiate legal action to enforce the lien before this one-year period lapses. The enforcement period cannot be extended, making it crucial to act within the specified timeframe.

How to File a Mechanics Lien in Connecticut?

mechanics lien ct

The construction sector often faces payment challenges, but fortunately, robust legal mechanisms exist to help industry professionals secure the compensation they deserve. Among these, the mechanics lien stands out as a highly effective tool for ensuring that construction companies receive payment for their work. If you haven’t been compensated for your contributions to a construction project in Connecticut, this comprehensive guide will walk you through the process of filing a mechanics lien step by step.

Mechanics liens offer multiple strategies to secure your payment, but the key takeaway is their effectiveness. By granting the claimant a stake in the enhanced property, mechanics liens empower construction professionals to reclaim the funds they are rightfully owed.

Assessing Your Lien Rights in Connecticut

Generally, anyone who supplies labor or materials to a construction project in Connecticut is entitled to file a mechanics lien. However, your specific role on the project may require additional steps to safeguard your lien rights.

While general contractors don’t need to take extra measures, subcontractors and suppliers must issue a Notice of Intent to Lien within 90 days after their last provision of labor or materials. This requirement is only applicable if the general contractor filed an affidavit with the town clerk within 15 days of starting work.

Nonetheless, it is advisable to send a Notice of Intent to Lien regardless to ensure your lien rights are fully protected.

Required Information for a Connecticut Mechanics Lien Form

Ensuring your Connecticut mechanics lien includes all legally mandated information and adheres to signature requirements is crucial. Missing or incorrect details can jeopardize your lien claim.

Download a Free Connecticut Mechanics Lien Form

Access a complimentary mechanics lien form for Connecticut, crafted by construction attorneys to meet all legal standards.

Connecticut requires mechanics liens to be sworn under oath by the claimant personally, a strict legal requirement.

In addition to the claimant’s notarized signature under oath, a Connecticut mechanics lien must include:

  • A detailed description of the property subject to the lien
  • The total amount being claimed
  • The name(s) of the property owner(s) against whom the lien is filed
  • The date when services or materials were first provided
  • A statement affirming that the claimed amount is rightfully owed

Important Considerations for Lien Signatures

Connecticut law mandates that mechanics liens must be sworn under oath and properly notarized to be enforceable. Courts in Connecticut have consistently ruled that mere notarization without an oath is insufficient.

The lien must explicitly state that it is “under oath,” and the notary must conduct an oath ceremony during the acknowledgment process.

Furthermore, Connecticut courts strictly require that the lien be signed by the claimant themselves. In the case of Kesco LLC v. 201 Salem Tpk LLC, a lien was invalidated because it was signed by the claimant’s attorney instead of the claimant. Therefore, only the lien claimant is authorized to sign the mechanics lien in Connecticut.

Lastly, ensure you accurately identify yourself as the lien claimant. For instance, using “John Doe Construction” instead of “John Doe dba John Doe Construction” can significantly impact the validity of your lien.

Four Steps to File a Mechanics Lien in Connecticut

1. Complete the Lien Form

Begin by selecting a lien form that complies with Connecticut’s statutory requirements. Download a free Connecticut mechanics lien form here. Once you have the correct form, meticulously fill in all necessary information as outlined above, but hold off on signing it just yet.

2. Sign and Notarize the Form

Sign the lien form in the presence of a notary public, who must verify your signature and conduct the required oath ceremony. The lien must be signed “under oath” and notarized to be valid. After notarization, make a duplicate of the completed lien form for your records.

3. Submit the Lien to the Town Clerk

Next, submit the original, notarized lien form to the town clerk in the municipality where the project took place. You can deliver the lien in person, send it via mail or FedEx, or use a courier service.

Find Connecticut Town Clerk Locations

When submitting the lien, ensure you include the correct recording fees. Incorrect fees can lead to the rejection of your lien, potentially causing you to miss critical deadlines. Verify the required fees by contacting the town clerk’s office, checking their website, or inquiring in person when delivering the lien.

4. Serve a Copy to the Property Owner

After recording the lien, obtain a certified copy to serve on the property owner. It’s also advisable to keep an additional copy for your records.

If you mailed or couriered the lien to the town clerk, include a self-addressed stamped envelope with instructions for receiving copies of the recorded lien for your files and to serve on the property owner.

Connecticut law mandates that a true and attested copy of the lien must be served to the property owner within 30 days of filing the Certificate of Lien with the town clerk. Proper service is crucial to maintain the validity of your lien claim. Proper service is crucial for maintaining the validity of such mechanic’s liens.

Connecticut Guidelines for Serving a Lien

As previously mentioned, Connecticut requires that the mechanics lien be served on the property owner within 30 days of filing the Certificate of Lien with the town clerk.

Serving a lien in Connecticut involves coordination with a state marshal or other law enforcement officer. According to statute (§ 49-35):

  • Same Town Residence: If the property owner or original contractor lives in the same town as the property, the notice can be delivered by any impartial individual, state marshal, or authorized officer. This can be done by handing it directly to the owner or contractor or leaving it at their usual residence.
  • Different Town Residence: If the owner or contractor resides in a different town, the notice must be sent via registered or certified mail to their residence. If the mail is returned as unclaimed, the notice must then be published to inform the owner or contractor.

Failing to properly serve the lien within the 30-day period can invalidate your lien claim. Given the time required to arrange service through a state marshal or process server, it is essential to initiate the service process immediately after recording the lien.

Subcontractors filing early can serve the Notice of Intent and the Notice of Recording simultaneously to meet Connecticut’s statutory requirements.

After Filing a Lien: Next Steps

certificate of lien

Congratulations! Once your lien has been both recorded and served to the property owner, you have effectively established a Connecticut mechanics lien to pursue the payment you deserve.

However, while a mechanics lien is a powerful enforcement tool, it is not infallible. The lien can still be contested or deemed invalid. Recording a lien does not automatically guarantee its validity, and property owners or their attorneys may challenge its legitimacy.

Additionally, a Connecticut mechanics lien remains effective for one year from the recording date. If you remain unpaid, you must initiate legal action to enforce the lien within this timeframe. The one-year period is non-extendable, so it is crucial to act promptly. Enforcing the lien typically involves filing a foreclosure lawsuit in court, for which the assistance of an experienced construction attorney is highly recommended.

Property Owner’s Rights and Responsibilities

As a property owner in Connecticut, it is essential to understand your rights and responsibilities regarding mechanic’s liens. When a contractor or subcontractor files a mechanic’s lien, it creates a cloud on the title of your property, which can impact your ability to sell or refinance the property. This cloud on the title can be a significant concern, as it may deter potential buyers or lenders.

You have the right to receive notice of the lien filing and to contest the lien if you believe it is invalid or excessive. Contesting a lien involves legal procedures, and it is advisable to seek legal counsel to navigate this process effectively. Additionally, you have the responsibility to ensure that all contractors and subcontractors are paid in full for their work and materials. This includes verifying that payments are made to all parties involved in the construction project, not just the primary contractor.

Resolving any disputes that may arise promptly is crucial to avoid prolonged legal battles and potential financial losses. By understanding your rights and responsibilities, you can take proactive steps to protect your property and ensure smooth project completion.

Benefits of Filing a Mechanic’s Lien

Filing a mechanic’s lien in Connecticut can provide several benefits for contractors, subcontractors, and suppliers.

These benefits include:

  • Securing Payment: A mechanics lien creates a legal claim on the property, ensuring that you have the means to secure payment for the work and materials provided on a construction project.
  • Leverage in Negotiations: The lien provides leverage to negotiate payment with the property owner, increasing the likelihood of resolving payment disputes favorably.
  • Protecting Lien Rights: Filing a lien protects your lien rights, preventing the loss of payment and ensuring that you are compensated for your contributions to the project.
  • Ensuring Full Payment: The lien helps ensure that all contractors and subcontractors are paid in full for their work and materials, promoting fairness and accountability in the construction industry.

By filing a mechanic’s lien, you can safeguard your financial interests and enhance your ability to receive timely and fair compensation for your work.

Risks of Not Filing a Mechanic’s Lien

Failing to file a mechanic’s lien in Connecticut can result in significant risks for contractors, subcontractors, and suppliers.

These risks include:

  • Loss of Payment: Without a mechanic’s lien, you may lose the opportunity to secure payment for the work and materials provided on a construction project.
  • Lack of Legal Claim: Not filing a lien means you cannot create a legal claim on the property in case of unpaid bills, reducing your chances of recovering the owed amount.
  • Reduced Negotiation Leverage: Without the leverage provided by a lien, negotiating payment with the property owner becomes more challenging.
  • Loss of Lien Rights: Failing to file a lien within the required timeframe results in the loss of lien rights, leaving you without legal recourse to claim payment.
  • Increased Risk of Disputes: The absence of a lien increases the risk of disputes and litigation, potentially leading to prolonged and costly legal battles.

To avoid these risks, it is crucial to understand the importance of filing a mechanic’s lien and to take timely action to protect your financial interests.

Mechanics Liens and Property Sales

In Connecticut, a mechanics lien can significantly impact the sale of a property. When a contractor or subcontractor files a mechanic’s lien, it creates a cloud on the title of the property, which can make it difficult to sell or refinance the property. This cloud on the title can deter potential buyers and lenders, complicating the property transaction process.

To resolve this issue, the property owner may need to pay off the lien or negotiate a settlement with the contractor or subcontractor. This often involves legal and financial negotiations to reach an agreement that satisfies all parties involved. It is essential for property owners to understand their rights and responsibilities regarding mechanic’s liens and to take proactive steps to resolve any disputes that may arise.

By addressing mechanic’s liens promptly and effectively, property owners can clear the title and facilitate smoother property transactions, ensuring that their financial and legal interests are protected.

Get in Touch

Securing payment through a mechanics lien in Connecticut is essential for contractors and suppliers to protect their financial interests. By following the outlined guidelines and meeting all deadlines, you can effectively assert your rights and ensure you receive the compensation you deserve.

At CRM Lien Services, we have been serving customers across the country with required reference documentation for lien claims since 1986. We assist property owners in navigating the mechanics lien process, informing them about their rights and responsibilities, including providing notices, securing payment, and releasing mechanic’s liens.

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 mechanics lien, give us a call or shoot us an email.

Subscribe

Share

You Might Also Like...