When contractors and suppliers are not compensated for their work on a Rhode Island construction project, they have the option to file a mechanics lien to ensure payment. A mechanics lien serves as a legal claim that grants the unpaid party a secured interest in the property involved. Both the Notice of Lis Pendens and the Complaint to Enforce Lien are crucial steps in the mechanics lien process in Rhode Island.
At CRM Lien Services, we specialize in ensuring that you get paid quickly and reliably. We can prepare and file mechanics liens for you in accordance with Rhode Island law, taking into account Rhode Island construction lien law and state-specific rules and regulations, including the need for an adequate and ascertainable description of the real estate.
This guide outlines the essential regulations, criteria, and timelines necessary to successfully file a mechanics lien Rhode Island.
Key Takeaways
- Broad Eligibility for Mechanics Liens: Rhode Island allows most project participants—including contractors, subcontractors, suppliers, and equipment lessors—to file a mechanics lien, ensuring even lower-tier participants are protected.
- Critical Deadlines and Requirements: A Notice of Intent to Lien must be sent within 200 days of the last labor or material contribution. This notice can also serve as the lien itself, and failure to meet the deadline may compromise your claim. The Notice of Intent to Lien must be sent via registered or certified mail to ensure proper documentation.
- Lien Priority and Enforcement: Rhode Island mechanics liens can take priority over some pre-existing mortgages if lenders fail to respond in time. Once filed, the lien must be enforced through foreclosure within 40 days to remain effective.
Understanding Rhode Island Mechanics Lien Law
Navigating Rhode Island mechanics lien law can be a daunting task due to its complexity and specific requirements. Understanding the basics is crucial for contractors, subcontractors, and suppliers to protect their rights and secure payment for their work. In Rhode Island, a mechanics lien is a powerful legal tool that ensures you get paid for the labor, materials, or services you provide to a construction project.
By filing a mechanics lien, you place a claim on the property, which can compel the property owner to settle the outstanding debt to avoid foreclosure. Familiarizing yourself with the mechanics lien law in Rhode Island is the first step in safeguarding your financial interests.
Who Can File a Rhode Island Mechanics Lien?
In Rhode Island, anyone providing labor or materials for a construction project is eligible for mechanics lien protection. There are no restrictions on the level within the project hierarchy, allowing even lower-tier subcontractors to claim mechanics lien rights. Additionally, suppliers who provide materials to other suppliers may also possess lien entitlements, although this is not explicitly detailed in the law.
Furthermore, any work costing more than $1,000 must be performed under a written contract that includes required consumer education statements. The notice of intention must include a description of the land sufficient for identification, such as a street address or legal designations.
Can Attorney’s Fees, Collection Costs, or Other Expenses Be Included in the Lien Total?
Legal fees and expenses for collections cannot be incorporated into a mechanics lien claim. However, Rhode Island allows a broad scope of recoverable amounts through mechanics lien filings. When enforcing a mechanics lien, claimants can obtain interest starting from the date the notice of intent was submitted, along with reasonable profits included in the contracts.
Additionally, if the property is sold to satisfy the lien, the damages awarded are based on the increase in the property’s value resulting from the improvements made. The lien claimed thereunder must meet specific conditions to be considered valid.
Does a Rhode Island Lien Take Priority Over Pre-Existing Mortgages or Construction Loans?
No, mechanics liens take precedence only over liens that are recorded after the mechanics lien itself and do not supersede any liens that were established before the mechanics lien was filed. According to §34-28-16, a mechanics lien can sometimes override a lender’s claim even if the loan was recorded prior to the lien, as demonstrated by a recent Supreme Court ruling.
In that case, the Supreme Court permitted a mechanics lien claimant to bypass an existing mortgage because the mortgage lender did not participate in the mechanics lien foreclosure process or submit a timely response. When multiple mechanics liens are involved, they all hold equal priority and are proportionally distributed from the proceeds of any foreclosure sale.
Can I File a Rhode Island Lien Without a License?
Contractors in Rhode Island Must Register to Obtain Building Permits or Bid on Projects and Are Required to Hire Only Registered Subcontractors
Is It Possible to File a Rhode Island Lien on a Condominium Project?
Yes. A Mechanics Lien may be filed against a condominium project in Rhode Island if you are an eligible party to do so.
Who Is Responsible for Canceling the Rhode Island Lien Once Payment Is Made?
Rhode Island Mechanics Lien Law does not specifically outline the responsibilities of parties to release a lien upon receiving payment before enforcement. However, generally, when payment is made after a lien is filed, it is typically done with the expectation that the lien will be released.
What Are the Rules for Lien Waivers in Rhode Island?
Rhode Island does not provide official statutory lien waiver forms, allowing the use of any form that suits the parties involved. Due to the lack of regulation, it’s essential to carefully review and understand the terms before signing any lien waiver.
State law prohibits waiving lien rights before receiving payment. However, waivers signed and delivered at the same time as, or following, payment for labor or materials are legally accepted.
What Information Must Be Included in a Rhode Island Preliminary Notice?
The Rhode Island Notice of Possible Mechanics Lien is regulated under RI Gen. Laws §34-28-4.1 and must follow this specific wording:
NOTICE OF POSSIBLE MECHANIC’S LIEN
To: (Insert the name of the owner, tenant, lessee, or holder of a lesser interest than full ownership)
This notice serves to inform you that the undersigned is preparing to perform work and/or supply materials for construction, alteration, or repair on the property located at (INSERT ADDRESS) under a contract with you.
Be aware that both the undersigned and any subcontractors or suppliers working under the same contract may place a mechanics lien on the property if they do not receive payment for their labor or materials. As the property owner or responsible party, it is your duty to ensure that all contractors and suppliers working under this agreement are properly compensated to avoid a potential lien on the property.
What Happens If a Rhode Island Preliminary Notice Is Sent Late?
Failure to deliver the Notice of Possible Mechanics Lien within the legally required timeframe will invalidate the contractor’s ability to file a lien claim.
Additionally, if the general contractor neglects to provide the notice, they must indemnify and protect the owner, tenant, lessee, or any party with less than full ownership from any costs or payments resulting from lien claims filed by parties not directly contracted with them. However, this obligation does not apply if the owner, tenant, or other party has failed to make the required payments to the relevant individuals or entities.
5 Important Facts About Rhode Island Mechanics Liens
Contractors and suppliers in Rhode Island possess strong lien rights, providing an effective way to ensure payment when disputes arise. If a contractor or supplier is unpaid for their work or materials, filing a mechanics lien becomes a crucial step to expedite payment and safeguard their interests. However, mechanics lien Rhode Island law has specific rules and deadlines that must be followed closely. Below are five key aspects of Rhode Island’s lien process you need to know.
Most Parties Involved in a Project Can File a Mechanics Lien
Rhode Island grants mechanics lien rights to almost all individuals and businesses that provide labor or materials to a construction project. There are no restrictions on who can file based on project tier, ensuring protection for even lower-level participants such as sub-subcontractors. Additionally, while the law does not explicitly mention it, suppliers providing materials to other suppliers may also have lien rights.
Mechanics Liens Cover Only the Last 200 Days of Work
The mechanics lien filing deadline in Rhode Island is 200 days from the last date of labor or material supply. However, the lien only applies to work completed within the 200 days preceding the filing. Any work done earlier than this timeframe will not be covered. For lengthy projects, filing multiple liens might be necessary to protect payment for all phases of the work.
Notice of Intent Can Act as the Lien
Rhode Island requires lien claimants to serve a Notice of Intent to Lien before proceeding. What sets Rhode Island apart is that this notice can function as the lien itself. Once served on the property owner, the notice can be filed with the local town clerk, recorder of deeds, or office of land records, automatically converting the notice into an official lien.
Legal Property Descriptions Are Not Mandatory
Unlike many other states, Rhode Island does not demand a legal property description for a lien. A basic description that identifies the property with reasonable clarity—such as the street address—is sufficient. This simplified requirement reduces the chances of technical errors invalidating the lien.
No Further Notice of Lien Filing Required
After the Notice of Intent is served and the lien is recorded, there is no legal obligation to notify other parties that the lien has been filed. Recording the lien with the appropriate office completes the process, ensuring the lien is legally enforceable without additional steps.
Understanding these essential points about Rhode Island’s mechanics lien law is crucial for contractors and suppliers to secure timely payment and protect their rights throughout the project.
How to File a Mechanics Lien in Rhode Island?
If you’ve been working on a construction project in Rhode Island and are facing payment issues, filing a mechanics lien could be the solution you need. A mechanics lien is one of the most powerful tools available to contractors, subcontractors, and suppliers to secure payment. This comprehensive guide outlines everything you need to know about filing a mechanics lien Rhode Island, helping you get paid what you’ve rightfully earned.
Do You Have the Right to File a Rhode Island Mechanics Lien?
Before filing a lien, confirm if you qualify under Rhode Island’s mechanics lien statutes. Anyone providing labor or materials—such as contractors, subcontractors, suppliers, equipment lessors, architects, and engineers—has lien rights as long as they work under a contract. While a traditional preliminary notice is not required, general contractors working directly with property owners must send a Notice of Possible Mechanics Lien. This statement must be included in the contract or sent by certified mail within 10 days of starting work.
Consulting Rhode Island construction attorneys can help navigate the legal landscape effectively.
Step 1: Send a Rhode Island Notice of Intention to Lien
Rhode Island’s lien process revolves around the Notice of Intent to Lien, which serves both as the notice and the lien form.
This document must be completed accurately and contain key details, including:
- Property owner’s information
- General description of the property
- Labor and materials provided, along with an estimated value
- Hiring party’s information
- Claimant’s information, including full legal name
Ensure the notice is signed and notarized before sending it to the property owner by certified mail within 200 days of your last contribution to the project.
Step 2: File a Rhode Island Mechanics Lien
If payment issues remain unresolved after sending the notice, it’s time to officially file the mechanics lien. Rhode Island allows up to 200 days to file from the last date of labor or material provision. However, only work completed within the 200 days preceding the filing will be covered, meaning long-term projects may require multiple liens.
To file the lien, submit it to the appropriate records office in the city or town where the project is located. Filing in person is recommended, as it allows you to correct any issues on the spot. If filing by mail, ensure it’s sent well in advance of the deadline to avoid delays.
Serving Notice and Recording the Lien
To file a valid mechanics lien in Rhode Island, the first critical step is serving a preliminary notice, also known as a Notice of Intention, on the property owner. This notice must be served within 200 days of the last day of work on the project. It is essential to send this notice via certified mail, return receipt requested, to ensure there is proof of delivery.
The notice must include the following information:
- The name and address of the property owner
- The name and address of the lien claimant
- A description of the work performed
- The amount due
- The date of the last day of work
After serving the preliminary notice, the next step is to record the lien with the town clerk or recorder of deeds in the county where the property is located. This must be done within the same 200-day timeframe from the last day of work. Recording the lien officially documents your claim and is a crucial step in the mechanics lien process.
What Happens After Filing the Mechanics Lien?
Once the lien is filed, it remains in effect for 40 days, giving you time to enforce or cancel it. If payment is still not made, you must initiate a foreclosure action by filing a complaint with the superior court within seven days of submitting a Notice of Lis Pendens. On the other hand, if the debt is settled, you can release the lien by filing a document with the same office where the lien was recorded, confirming that the payment has been made.
Following these steps carefully ensures that your mechanics lien will effectively secure your payment rights in Rhode Island.
Enforcing a Mechanics Lien in Rhode Island
If you have filed a mechanics lien Rhode Island and the property owner has not paid the amount due, further action may be necessary to enforce the lien. This can involve filing a lawsuit to foreclose on the lien or seeking a court order to compel payment. Enforcing a mechanics lien can be a complex legal process, and it is essential to work with an experienced attorney who is well-versed in Rhode Island mechanics lien law. An attorney can guide you through the necessary steps, ensuring that your rights are protected and that you take the appropriate legal actions to secure the payment you are owed.
Private and Public Projects: Differences in Mechanics Lien Law
Rhode Island mechanics lien law varies depending on whether the project is private or public. For private projects, a preliminary notice must be served on the property owner within 200 days of the last day of work. This notice is crucial for preserving your right to file a lien.
In contrast, for public projects, no preliminary notice is required. Instead, a notice of claim must be filed with the public entity within 90 days of the last day of work. Understanding these differences is essential for ensuring compliance with the specific requirements and deadlines for each type of project.
Mechanics Lien Expiration and Release
A mechanics lien in Rhode Island has a limited lifespan and will expire 40 days after it is filed unless a lawsuit is initiated to foreclose on the lien. If the lien is not foreclosed within this period, it will automatically expire, and the lien claimant will lose their claim against the property. If the debt is settled, the lien claimant must file a release of the lien with the town clerk or recorder of deeds to officially release the property from the lien. This step is crucial to clear the property title and confirm that the payment has been made.
By understanding these key aspects of Rhode Island mechanics lien law, you can effectively navigate the process and ensure that your rights are protected.
Get in Touch
A mechanics lien is a powerful tool for contractors, subcontractors, and suppliers working on Rhode Island construction projects to ensure payment for their labor or materials. Understanding the legal framework and following the proper steps—from sending the Notice of Intent to officially filing the lien—is essential to securing your rights. Rhode Island offers robust protections through its lien laws, but meeting deadlines and requirements is critical for success. By navigating this process correctly, you can safeguard your financial interests and recover what you are owed for your hard work.
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.
