Category Archives: Notice of Right to Lien

Completion? Last Furnished? Stop Date?

Many ways to reference what most consider to be the same thing. However, everyone of these terms have completely different meanings and various concerns on those planning to secure their outstanding receivables on any given job.

Lets take some time to give each of these the respect they deserve and hopefully avoid compromising your lien rights due to misunderstanding.

First and foremost is the COMPLETION date. This is usually manifested by a formal filing of a “Notice of Completion” with the recorders office in the county where the property is located. But it may also be confirmed by the owner and the general contractor agreeing that the contract is completed, final payment is made, and no further work is required. In other words the COMPLETION is driven by the finalization of the original construction contract between the owner or owner’s agent and the general contractor.

So why is this important?

Why is it any different than the date you last furnished to the project or the date your company stopped working on the job?

One thing to consider is the lien law statute for the state where the property is located. If the statute declares that the time for anyone holding a right to bring a mechanics lien against the job will expire 90 days after the Notice of Completion is recorded. Then on the 91st day after recordation, your lien rights are gone.

Now there are states which declare that a subcontractor or materials supplier is allowed up to 90 days after last furnishing to record and serve a mechanics lien.

How does this differ from the above?

When you consider any project which may last many months or perhaps years. Many different trades could participate in the project long before the original construction contract between the owner and the general contractor is completed. However, if the state statute requires them to record and serve their mechanics lien, not later than 90 days after their STOP DATE or after they last supplied to the project. Then their mechanics lien rights will also disappear 91 days after they finish.

So how do you protect your open accounts receivables when there are so many variables which could impact your time to take action?

At CRM we offer a clients a service called “eAlerts Unlimited” This Lien Rights Tracking Program is driven by the STOP DATE, or anticipated STOP DATE, which is recorded on the date your request for a notice to establish your lien rights is received. Most clients do not know when they will stop supplying to the job. For some it may be a one time shipment, while others may continue to supply for months or perhaps for the duration of the project. One key point to keep in mind is: “It is not solely based on the shipments you may supply to the job site” It is also governed by each of your customers who may have ordered from you for the same project. Each customer will need to be named in separate initial notices that will protect your lien rights on this project.

The sweet feature of the CRM Unlimited eAlerts program is that it E X T E N D S your time to take action by the continuation of your “Last Shipped Orders”. The CRM eAlert Reports (Weekly, Monthly, or As Requested) will allow you the opportunity to compare the

“STOP DATE” on the report with your last SHIP DATE in your accounts receivables file.

When they are the same, you will need to consider the recommended action as listed in the report. When these dates differ, you may note your last ship date on the report and return, via email, to CRM. We will then extend your original STOP DATE to the new LAST SHIP date and your time to consider a mechanics lien will be extended accordingly.

For additional information please select:

Never miss another Mechanics Lien DEADLINE

eSystems “Online Notice Management”

We have made some major improvements to our eSystems online document management program for 2016. Most significant is our online compatibility with the new Windows IE 11 Browser. All Waivers and Releases are now available to be prepare without reformatting, print direct from IE11, and save as a .pdf file for attachment to your email or text message.

In addition, the login screens have been upgraded to allow personal modification and updates to Account Passwords, and our new “User Password” security. Allowing CRM eSystems clients the ability to assign an “eSystems” Administrator to edit and create all User level password protection.

If you are using CRM to have your preliminary notices prepared and served, then you won’t find a more efficient and effective program to manage your served notices and prepare current versions of Releases and Waivers of your lien Rights, then eSystems.

Best of all, eSystems is available to all CRM Open Account Clients for a small annual subscription fee of only $69.00

To learn more about using eSystems, or to have eSystems added to your account today.

Contact CRM at ContactUS

Are You Paying Too Much for a Preliminary Notice?

The cost to research, prepare, and serve a preliminary notice (also referred to as a “prelim”) is based upon some very simple principles.

  1. Time to conduct research and verify the information so the prelim will in fact be valid once it is served.
  2. Time to enter this information into the most current prelim form, which complies with the current state statute.
  3. The cost of the method you choose for the actual serving of the prelim. This is based on many variables. Example:
    a.) Do you want to secure “Proof of Receipt” by the entity being served at the time of service? Or
    b.) Do you want to lessen your cost and serve the notice by securing “Proof of Service”? (both methods satisfy the requirements of the state statute for serving a prelim)

So, how much should this cost?

Let’s break it down:

  1. Time to research and verify. As this is usually the most time consuming part of prelim process. It is safe to use an estimate of 30 minutes on average to complete the research and verification.
  2. Assuming that the data entry is completed using some pre existing template inside of a Word Processing or Database program. The data entry, printing, and proofing, should not take much more the 15 minutes.
  3. The method most will choose to serve a prelim is: “First Class Certified Mail”. This is the same for everyone who must serve a prelim. This cost is only $3.78 per service.

So if you have an employee who may earn $12.00 per hour, perform this service. And the prelim you serve needs to be served on only one entity (the property owner). Then your hard cost to have a prelim served may be only $15.78.

So now you should ask two questions:

First Question is: Why should I be charged $30.00 or $40.00 to have a service, serve a prelim for me?

The answer is: Almost every prelim served is served upon:

  1. The Property Owner
  2. The General Contractor
  3. The Construction Lender

That’s right (3) separate services and (3) different locations with (3) different proof of service.

So the base cost is more like: $12.00 + $11.34 (3 x $3.78) or $23.34

Keep in mind, we have not considered paper, printing, the trip to the post office, payroll taxes, etc., etc. Therefore the real cost could be somewhere around $25 – $27 per average prelim.

Second Question is: How can a Preliminary Notice Service offer to do the process for only $15.00?

Good question. Think about it. The answer is: They cannot. Even when you only have one entity to serve. The cost should exceed $15.00.

So how can anyone advertise a served prelim for $15.00?

One way is to skip the research and just serve the owner and hope that it works to protect your lien rights. The other may be to let you know after the fact that they will be charging you $15.00 each for everyone served. That could end up costing you $45.00 for one completed prelim.

Bottom line is: Use someone you can trust. Anyone offering a “Too good to be true price” is the type of document processing partner you may want to think about before exposing your customers. Once you have done the math, the true cost is easy to estimate. Anyone offering price below realistic cost must be cutting corners someplace. Is that the company you want calling your customers and serving your prelims?

For fair and reasonable pricing, turn to CRM Lien Services. ContactUS today for a proposal for our Preliminary Notice services. You will be glad you did and so will your customers.

Filing a Claim of Lien in Nevada: What You Need to Know

Is your Nevada-based construction business needing to file a Claim of Lien? If so, it’s important to be aware of and understand the provisions included in the Nevada Lien Law. Many businesses often overlook small but critical components which are required by the Nevada State Statute for filing a Claim of Lien. As a result, they find their efforts compromised and their lien rights unenforceable.

Keeping current with Nevada’s Lien Law is important to the success of your Claim of Lien. A specialized Lien Service provider, such as CRM Lien Services, can help you navigate the processing details and take all of the steps required for the filing a valid Claim of Lien. We receive questions daily regarding the Nevada Lien Law and would like to present a few facts you may benefit from, prior to filing your Nevada Claim of Lien.

Under the Nevada Lien Law, Lien Rights are granted to all who participate in the improvement to real property.

When it comes to who has the right to file a Claim of Lien in Nevada, Nevada’s laws are more comprehensive than most states. According to the provisions detailed in the law, any party providing labor and/or materials valuing over $500 has the right to file a Claim of Lien. This includes contractors, subcontractors, suppliers, architects, surveyors, engineers, geologists, and even consultants.

Under the law, however, suppliers only have lien rights if the provided materials are actually used for the project. Additionally, if the claimant is required to be licensed in the state of Nevada for the work he or she performs, a Claim of Lien can only be filed if the claimant is properly licensed.

Notice of Right to Lien is Required

A Notice of Right to Lien must be properly served on the property owner AND general contractor within 31 days from the date that labor and/or materials are first provided. It’s important to note that all project participants must send this notice; the only parties exempt from this provision are those in direct contract with the property owner.

CONCERNING RESIDENTIAL PROJECTS IN NEVADA: Residential projects differ somewhat from commercial projects in Nevada. In addition to sending a Notice of Right to Lien within the first 31 days of providing labor and/or material, a Notice of Intent to Lien must be sent to the property owner 15 days prior to filing a Claim of Lien. This serves to extend the lien filing period by 15 days.

A Nevada Claim of Lien Must Be Filed in 90 Days

The Claim of Lien must be filed with the county recorder within 90 days of the project’s completion/termination or within 90 days of the date the claimant last provided labor and/or materials. It’s important to note, however, that if a Notice of Completion is filed, the claimant only has 40 days from the filing of the Notice of Completion to file a Claim of Lien (as opposed to the general 90-day rule).

A Copy of the Claim of Lien Must Be Provided to the Property Owner and General Contractor

The state of Nevada requires claimants to provide the property owner and general contractor with copies of the Claim of Lien in addition to recording it with the county recorder. Under the law, claimants are required to send a copy to both the property owner and general contractor via certified mail with a return receipt requested within 30 days from the date the Claim of Lien was filed.

Don’t risk your Lien Rights by trying to navigate the laws on your own – hire a Notice of Right to Lien and Claim of Lien Service to prepare and serve your Nevada Notices of Right to Lien and Claims of Lien. Here at CRM, we make it a point to familiarize ourselves with the Nevada Lien Law and seek legal counsel from Nevada attorneys as needed to ensure the proper upholding of the law.

CRM Lien Services will thoroughly research and verify all of the information included in your Notice of Right to Lien and Claim of Lien so your Lien Rights are fully protected. We stay current with the changes to the Nevada Lien Law so your notices are prepared according to the latest statutes.

If you’d like to request a proposal for our services, click here.

Uncovering the Oregon Lien Law

Do you need help filing a Claim of Lien in the state of Oregon? Are you unsure if a Notice of Right to Lien is required? If you have questions concerning Oregon’s Lien Law, you’ve come to the right place. As an Oregon Lien Service provider, we make it a point to be very familiar with Oregon’s Lien Law and follow them exactly as they are written. Oregon’s Lien Law is very explicit, and if your business plans to regain unpaid funds through a Claim of Lien, you will need to understand how to make best use of the Oregon’s Lien Law.

The Oregon Lien Laws have many conditions to consider before preparing and serving your Claim of Lien. Below are four critical concepts to keep in mind as you begin the Claim of Lien process:

Eligibility Requirements for Filing a Claim of Lien are Very Specific

Unlike other states that may be more liberal concerning who may file a Claim of Lien, Oregon’s Lien Law has specific eligibility requirements. According to § 87.010, those who may file a Claim of Lien include:

“1) Any person performing labor upon, transporting or furnishing any material to be used in, or renting equipment used in the construction of any improvement to real property;

2) Any person who engages in or rents equipment for the preparation of a lot or parcel of land, or improves or rents equipment for the improvement of a street or road adjoining a lot or parcel of land at the request of the owner of the lot or parcel;

3) Trustees of an employee benefit plan;

4) An architect, landscape architect, land surveyor or registered engineer who, at the request of the owner or an agent of the owner, prepares plans, drawings or specifications that are intended for use in or to facilitate the construction of an improvement or who supervises the construction.”

A Notice of Right to Lien Must be delivered within 8 Days of Furnishing Labor or Materials

Oregon allows a very limited period for serving your Notice of Right to Lien. According to the law, anyone furnishing labor and/or materials to the project who is not in direct contract with the property owner must prepare and deliver a Notice of Right to Lien within 8 days of first furnishing the labor and materials required for the project. The notice must be delivered via certified mail to both the property owner and the lender (if applicable); if not, Lien Rights may be lost. If you have complied with this condition and need to advance the lien process, then:

A formal Claim of Lien Must be Filed and Served, within 75 Days of the Project’s Completion or Last Furnishing Date

If the claimant has served a Notice of Right to Lien to the property owner and lender, he or she can file a Claim of Lien. The deadline to file a Claim of Lien in Oregon is the earlier of the two: 75 days of the last date materials and/or labor were furnished for the project OR 75 days after the completion of the project. Keep in mind that if your Claim of Lien is filed too early, your claim could be invalid. Wait until your project has either completed or all of the materials and/or labor have been furnished.

No lien created under ORS 87.010 shall bind any improvement for a longer period than 120 days.

From the day that you prepare, record, and serve your lien, you have 120 days to take action. On the 121st day the lien becomes invalid and must be removed with prejudice. Failure to begin a lawsuit within the 120-day window is a sure way to loose all of the security you have been granted by the recorded lien. Do not wait very long after filing your lien to get your attorney involved.

These are just a few key provisions included in the Oregon Lien Law. There are hundreds more that are just as important to the success of your Claim of Lien. Do not risk your Lien Rights by trying to navigate the laws on your own – hire a Notice of Right to Lien and Claim of Lien Service to prepare and serve your Oregon Notices of Right to Lien and Claims of Lien.

CRM Lien Services will thoroughly research and verify all of the information included in your Notice of Right to Lien and Claim of Lien so your Lien Rights are fully protected. We stay current with the changes to the Oregon Lien Law so your notices are prepared according to the latest statutes.

If you’d like to request a proposal for our services, click here.