In Maine, contractors and suppliers can file a mechanics lien to ensure payment if they are not compensated for their work on a construction project. This legal instrument grants the unpaid party a security interest in the property.
It is crucial to correctly complete the Maine mechanics lien form to ensure its validity in the filing process.
At CRM Lien Services, we specialize in ensuring you get paid quickly and reliably. We can prepare and file mechanics liens for you, taking into account Maine mechanics lien law and state-specific rules and regulations.
This page outlines the essential rules, requirements, and deadlines for filing a mechanics lien in Maine.
Key Takeaways
- Comprehensive Lien Rights Across All Project Tiers: In Maine, mechanics lien rights extend to anyone who performs labor or supplies materials for construction projects, including sub-subcontractors, surveyors, architects, engineers, and more. This broad protection ensures that all parties involved in a project have the means to secure payment.
- Critical Deadlines and Requirements: Lien claimants without a direct contract with the property owner must record their lien in the county registry of deeds within 90 days of their last work day and file a complaint in court within 120 days to enforce the claimant’s lien claim. Direct contractors can skip the registry step and proceed to a court filing. Preliminary notices, while not generally required, can enhance lien protection.
- Priority and Release of Liens: Mechanics Lien Maine can potentially take priority over pre-existing mortgages if certain conditions are met, particularly if the mortgage holder consents to the work. Once a lien is satisfied, the claimant must release it within 60 days, regardless of whether a request for release is made by the property owner.
Who Can File a Maine Mechanics Lien?
Maine grants mechanics lien rights to anyone who performs labor or supplies materials for the construction, alteration, repair, or moving of buildings, appurtenances, wharves, or piers. These lien rights also cover those who provide labor materials or services for construction projects.
This protection specifically covers surveyors, architects, engineers, real estate agents, landscapers, and sellers of land or structures. It also includes equipment lessors and providers of equipment parts.
In Maine, there is no restriction on which project tiers, such as subcontractors, can file mechanics liens.
When Is the Deadline to File a Maine Mechanics Lien?
In Maine, lien claimants without a direct contract with the property owner must record their mechanics lien claim (known as a Notice of Lien) in the registry of deeds for the county where the property is located within 90 days from the last day they provided labor or materials for the project.
Additionally, all lien claimants must file a complaint in the Maine District or Superior Court within 120 days from the last day of furnishing labor or materials. Those with a direct contract with the property owner are exempt from filing the Notice of Lien with the registry of deeds and can directly proceed with filing the claim in court.
Do I Need to Send Notice That the Lien Was Recorded?
Yes, Maine law mandates that lien claimants send a copy of the Notice of Lien to the property owner. This can be done via ordinary mail, but it’s essential to obtain a post office receipt of mailing, which serves as conclusive proof of receipt by the owner under Maine law. Alternatively, sending the copy by certified mail with the return receipt requested is also acceptable.
Will My Maine Lien Have Priority Over Pre-existing Mortgages or Construction Loans?
Possibly. In Maine, a mechanic’s lien claimant may gain priority over a property’s mortgage holder if certain criteria are satisfied. According to Maine mechanics lien law, a mechanic’s lien has precedence over the owner’s property interest if labor or materials were supplied under a contract with or without the owner’s consent.
Maine’s status as a “title theory” state is notable, meaning the mortgage holder is viewed as having legal title to the property. Therefore, if the lien claimant can demonstrate that the mortgage company consented to the work, the mechanic’s lien will take priority over the existing mortgage.
None of the competing mechanics liens holds priority over another, and proceeds from a foreclosure sale are divided on a pro-rata basis.
Who Cancels the Maine Lien When the Property Owner Gets Paid?
Recent amendments to Maine law mandate that a lien claimant must release a lien within 60 days of it being satisfied. This requirement is automatic and does not depend on a request or demand from the property owner or any other interested party to initiate the 60-day period.
What Are the Lien Waivers Rules?
Maine does not provide statutory lien waiver forms, so you are free to use any form. However, since lien waivers are unregulated, it’s important to carefully review and understand them before signing.
Maine state law is ambiguous or silent regarding whether contractors and suppliers can waive their lien rights before starting work on a project. Therefore, it is advisable to proceed cautiously in such situations.
Do I Need to Send a Maine Preliminary Notice?
It depends. Preliminary notices are generally not mandatory in Maine. However, there are specific circumstances where a preliminary notice can safeguard a lien claimant’s rights or help prove the owner’s consent.
Although not explicitly required by Maine law, filing a notice in the Registry of Deeds can preserve the lien claimant’s lien against a subsequent bona fide purchaser. Without this notice (or an action to enforce the lien), a property purchaser will acquire the title free of the lien.
For owner-occupied residential projects (and commercial, business, or industrial projects where the owner resides on-site), a lien claimant may voluntarily serve a preliminary notice on the property owner.
While not obligatory, this notice can serve two crucial purposes:
- In Maine, a lien claimant must prove the property owner knew of and consented to the labor or materials provided. Delivering this notice to the owner can fulfill this requirement (applicable to any project).
- In Maine, without notice, the property owner is only liable for amounts still owed to the general contractor. If the owner has already paid the general contractor in full, the lower-tier lien claimant may be unable to recover their payment.
Additionally, the claimant giving notice to the property owner is crucial to enhance lien protection. This notice ensures the owner is aware of the claimant’s involvement and the potential for a lien, which can prevent double payment issues.
When Do I Need to Send a Maine Preliminary Notice?
To protect a lien claim against a bona fide purchaser for value, the notice should be filed in the Registry of Deeds immediately after starting work for maximum protection. This notice must be renewed every 120 days to stay effective. Similarly, for owner-occupied residential projects, giving notice promptly ensures the best protection for the claimant.
Since the lien amount is limited to what is still owed to the general contractor when the notice is received or the lien is filed (whichever comes first), it is advisable to send this notice as early as possible.
5 Essential Things to Know About Maine Mechanics Liens
If contractors or suppliers are not paid for a job in Maine, they can file a lien to expedite payment and protect their interests. However, specific rules and requirements must be followed.
Here are five essential aspects of Maine’s mechanics lien law.
1. No Tier Limitations in Maine Mechanics Lien Law: Project participants in Maine have broad protection under mechanics lien law. There are no tier limitations, meaning sub-subcontractors can file a lien. The law also covers surveyors, architects, engineers, real estate licensees, landscapers, and sellers of land or improvements, along with general contractors, subcontractors, and material suppliers.
2. Direct Filing for General Contractors: General contractors can file a mechanics lien directly with the court without first filing a Notice of Lien in the county registry of deeds, unlike participants without a direct contract with the property owner. General contractors must file their lien in court within 120 days of the last furnishing materials. Those without a direct contract must file in the county registry within 90 days of the last furnishing and then file a complaint in court within 120 days.
3. Preliminary Notice Generally Not Required: While preliminary notices are typically not required in Maine, they can significantly help protect lien rights in certain situations. Filing an Intent to Lien in the Registry of Deeds can preserve lien rights against potential purchasers. If this notice is not given, a property purchaser may acquire the title free of the lien. Serving a Notice of Intent to Lien on an owner-occupied project can also change Maine from an “unpaid balance” lien state to a “full-price” one.
4. Legal Property Description Not Required: Unlike many states, Maine does not require a legal property description in a mechanics lien. Instead, the property must be detailed to accurately identify it. Providing a description of the property sufficiently accurately to identify it, along with the owners’ names and the details of the labor or services performed, is crucial to effectively protect the claimants’ rights when filing notices regarding lien claims. However, including a legal property description is always sufficient if available.
5. Mechanics Lien May Have Priority Over Mortgages: If a mechanic’s lien does not result in payment and foreclosure is necessary, the lien may have priority over the mortgage. In Maine, a mechanics lien has priority over the property owner’s interests, and the mortgage company is considered the actual owner. If the lien claimant can prove the mortgage company consented to the work or materials, the mechanics lien could take priority over the first mortgage.
How to File a Mechanics Lien in Maine
The construction industry often faces significant payment issues. Delayed payments are common, and in some cases, payments are never received, causing cash flow problems and difficulties for many hardworking companies across numerous projects.
The complexities of construction payment, involving numerous parties and various practical challenges such as intricate pay applications, risk-shifting contract clauses, and workmanship disputes, all contribute to slow and improper payments. Fortunately, every state provides legal tools to construction participants that can almost guarantee payment and improve cash flow. These tools are known as mechanics liens.
Mechanics liens, introduced by Thomas Jefferson, are designed to ensure that construction participants receive proper payment. This powerful tool provides the claimant with a security interest in the improved property, enabling them to recover the money they’ve earned.
If you’re unpaid on a construction project in Maine and wish to pursue payment through a mechanics lien, this step-by-step guide will help you. However, before proceeding, it’s important to understand the preliminary notice and timing requirements necessary for filing a valid Maine mechanics lien.
Filing a Mechanics Lien: A Step-by-Step Guide
Filing a lien can be a complicated and time-consuming task. If you’re prepared to handle it yourself, follow these steps:
Ensure Your Maine Mechanics Lien Has the Required Information
It’s crucial to ensure your mechanics lien is complete and contains all required information. Maine’s lien laws require strict adherence to technical and formal statutory requirements. Missing certain information can invalidate the entire lien. Correctly completing the Maine Mechanics lien form is essential to ensure its validity in the filing process.
A Maine mechanics lien must include:
- A true statement of the amount due, with all just credits given.
- A description of the property intended to be covered by the lien, accurately identifying it.
- The names of the owners, if known.
- A notarized or sworn signature of the claimant or their representative.
Note: Including the party’s identity that hired the claimant and a description of the labor or materials provided is not mandatory but recommended for clarity and pressure on the right parties.
Special Note Regarding Maine’s Lien Requirements by Role
While the above requirements are necessary for most parties, those with direct contracts with the owner are not required to file with the register of deeds. Instead, they can proceed directly to filing a claim in court. The complaint must state the lien claim, include a property description, and describe the labor or materials provided. It should also request that the property be sold to discharge the lien.
Filing a lien before initiating a lawsuit might benefit direct contractors, as it gives the owner a chance to pay without incurring legal expenses.
How to File a Maine Mechanics Lien
To file your Maine mechanics lien:
- Prepare the lien form, ensuring it includes all necessary information.
- Sign and swear to the contents before a notary, who will notarize the lien claim.
- Send the original copy to the register of deeds in the county or registry district where the property is located. Maine does not support e-recording, so the lien must be delivered physically via mail, FedEx, or in person.
- Include the correct recording fees. Check with the county register of deeds for the fee structure.
- Ensure the document complies with any specific margin requirements or county-specific cover pages. Understand the conditions under which such a lien may be preserved.
If mailing, include a self-addressed stamped envelope for the return of the recorded lien.
How to Serve a Maine Mechanics Lien
After recording the lien, you must serve a copy to the property owner to make it valid. Maine law requires sending the lien statement by regular mail. Obtaining a post office certificate of mailing serves as conclusive proof of receipt.
Final Steps
Once your lien is filed and served, it will secure your payment. However, be prepared for potential challenges, as liens can be contested or deemed invalid if there are compliance issues. Enforcing the lien through foreclosure may be necessary, which can be lengthy and costly.
A mechanics lien Maine remains effective for 120 days from when labor or materials were last furnished. Use this guide to navigate the process and ensure fair treatment in your construction projects.
Get in Touch
In Maine, contractors and suppliers have robust mechanisms to ensure they receive payment for their work through the use of mechanics liens. This legal tool grants a security interest in the property to unpaid parties, offering a powerful method to secure the compensation they deserve.
If the claimant is a real estate licensee, they must provide written notice to a bona fide purchaser before the purchaser takes title to the premises affected by the lien to ensure that the lien is preserved.
At CRM Lien Services, we have been serving customers nationwide 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.
We would love to work with you and help you lower your risk and get paid fast!
