If contractors and suppliers are not compensated for their work on a Massachusetts construction project, they have the option to file a mechanics lien to guarantee payment. A mechanics lien acts as a legal claim, granting the unpaid party a secured interest in the property involved according to Massachusetts mechanic’s lien law.

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 Massachusetts law, taking into account Massachusetts 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, prerequisites, and deadlines you must adhere to when filing a mechanics lien Massachusetts.

Key Takeaways

• Eligibility and Requirements for Mechanics Lien Rights: In Massachusetts, mechanics lien rights extend to contractors, subcontractors, service professionals, and equipment providers directly involved in a construction project. This includes those providing general contractor services, which cover labor and materials secured through a lien. However, lower-tier participants like sub-subcontractors and suppliers to suppliers are not eligible.
• Timely Filing and Notice Submission Are Essential: Claimants must follow strict deadlines for filing a Notice of Contract and Statement of Account. Preliminary notices, such as the Notice of Identification, are required within 30 days for subcontractors without a direct contract to preserve full lien rights.
• Liens Must Be Properly Filed and Recorded: Mechanics liens need to be filed with the registry of deeds in the relevant county. While notarization isn’t mandatory, it is recommended to avoid rejections. Proper service of the lien on property owners increases the likelihood of timely payment.

What is a Mechanics Lien?

A mechanics lien is a statutory right afforded to contractors and subcontractors under Massachusetts law, codified in MGL c. 254. It is a legal claim against a property to enforce payment for labor and materials furnished as part of a construction project. Despite its name, a mechanics lien is not related to actual mechanics or cars. Instead, it provides a powerful tool for contractors and subcontractors to secure payment for their work. By filing a mechanics lien, the claimant can place a hold on the property, making it difficult for the property owner to sell or refinance until the debt is settled.

Massachusetts Mechanic’s Lien Law Overview

Massachusetts mechanics lien law is governed by MGL c. 254, which provides for three types of liens: personal labor, contractor, and subcontractor. The law requires strict adherence to procedural requirements for establishing a lien, and failure to comply with these requirements can result in the dissolution of the lien. A mechanics lien is a statutorily created lien that may be filed without the consent of the owner or any judicial review. This involuntary lien differs from a mortgage or attachment, which requires court approval. Understanding these distinctions is crucial for anyone involved in the construction industry in Massachusetts.

Who Is Eligible to File a Massachusetts Mechanics Lien?

In Massachusetts, mechanics lien rights are granted to individuals or companies providing labor or materials for the construction, alteration, repair, or removal of structures on a property, or for work on the land itself. However, lien eligibility applies only to those who have direct contracts with the property owner, general contractor, or first-tier subcontractor.

Design professionals—such as architects, engineers, landscape architects, licensed site professionals, and land surveyors—also qualify for lien rights under Massachusetts law.

Suppliers to other suppliers, parties below the level of sub-subcontractors, and sellers of tools or equipment are not covered by mechanics lien protections in Massachusetts.

Can an Unlicensed Contractor File a Mechanics Lien in Massachusetts?

Massachusetts does not mandate that a mechanics lien claimant hold a license to file a lien. However, performing work that legally requires a license without obtaining one is highly discouraged.

Additionally, individuals or businesses conducting work that falls under state licensing regulations may face penalties for non-compliance. Ensuring proper licensure is crucial to avoid legal issues and potential fines while protecting lien rights. Furthermore, the owner must provide a contractor written notice about the termination, and the contractor is obligated to notify every party who has entered into a contract with them.

Does a Massachusetts Lien Require a Legal Property Description?

No, Massachusetts only requires that the Statement of Account include a “brief description of the property.”

This description should be detailed enough to allow someone familiar with the area to identify the land with reasonable certainty. However, providing a more precise and accurate description is always recommended to avoid any potential confusion or disputes.

Are Attorney Fees or Collection Costs Allowed in the Lien Amount?

No, interest and attorney’s fees cannot be included in the total lien amount in Massachusetts, as confirmed in Nat’l Lumber Co. v. United Cas. & Sur. Ins. Co.

It remains uncertain whether general overhead, profit, or delay damages are recoverable under Massachusetts lien law. However, most mechanics lien statutes generally do not permit these types of costs to be claimed within a lien. Obtaining partial lien waivers from parties involved in a project should be standard practice before making payments, ensuring that services rendered are acknowledged and financial obligations are secured.

Is Notarization Mandatory for a Massachusetts Mechanics Lien?

Not necessarily. In 1996, Massachusetts law was revised to remove the requirement that a Statement of Account be “signed and sworn to.” Instead, the law now mandates that a “just and true” statement must be filed with the registry of deeds in the county or district where the property is located. However, any notice or document permitted or required to be filed “shall be entitled to be recorded or filed” if it is notarized.

Additionally, some registries of deeds may have internal procedures that could lead to the rejection of documents that are not notarized. Therefore, to avoid potential issues, it is generally recommended to have Massachusetts liens notarized as a best practice. Entering into a written contract is essential for contractors and subcontractors to secure their legal claims for payment of labor and materials provided on construction projects, as it directly ties to the statutory requirements for filing notices and pursuing mechanics liens.

Can You Enforce a Lien If the General Contractor Has Been Paid in Full?

It depends. When a subcontractor submits a Notice of Identification within the required timeframe, they can claim the total amount owed to them through a mechanics lien. However, if the subcontractor fails to provide this notice on time, their lien rights are limited to the remaining unpaid balance or any amount that becomes due under the original contract.

Does a Massachusetts Mechanics Lien Take Priority Over Existing Mortgages or Loans?

The priority of a mechanics lien in Massachusetts can be complex and is generally limited. A mechanics lien for personal labor will only take precedence over a mortgage if the work began before the mortgage was recorded. For general contractors, their lien holds priority over a mortgage only if the Notice of Contract was filed before the mortgage funds were disbursed, with additional conditions applying.

Other mechanic’s liens only gain priority over mortgages or encumbrances that were not recorded when the Notice of Contract was filed. The rules governing lien priorities are intricate and require careful attention.

When multiple mechanic’s liens exist, and foreclosure proceeds are insufficient to cover all claims, the funds are distributed proportionally among the lienholders based on their claims.

Who Must Send a Notice of Contract for Private Projects in Massachusetts?

In Massachusetts, there are two types of preliminary notices available to protect lien rights: the Notice of Identification and the Notice of Contract.

Notice of Identification: Claimants who do not have a direct contract with the general contractor should send a Notice of Identification to secure full lien protection. Providing this notice ensures the claimant can file a lien for the full amount owed. Without it, the lien will only cover the unpaid balance remaining with the 1st-tier subcontractor when the claimant submits the Notice of Contract.

Notice of Contract or Subcontract: Any party with a written agreement involving the owner, general contractor, or subcontractor must file a Notice of Contract (or Notice of Subcontract, if applicable) to be eligible for filing a mechanics lien. Filing this notice is essential to establish and preserve mechanics lien rights in Massachusetts. Subcontractor construction management services often include the preparation and submission of these notices to ensure financial protection and rights to payment for labor and materials furnished for real property improvements.

What Happens If a Preliminary Notice Is Sent Late?

Notice of Identification

If a Notice of Identification is not submitted within the required timeframe, the lien claimant’s rights will be restricted. The lien amount will be limited to what is owed to the first-tier subcontractor at the time the claimant files the Notice of Contract.

Notice of Contract or Subcontract

Failing to submit the Notice of Contract within the allowed period will invalidate the mechanics lien claim entirely. Even with timely submission, the lien amount may still be affected. If the owner makes payments or if the general contractor leaves the project before the Notice of Contract is filed, the lien claim may only cover the remaining unpaid amount at that point.

Essential Requirements for Mechanics Liens in Massachusetts

Massachusetts mechanics lien law outlines specific procedures and requirements that must be followed to file a valid mechanics lien. Adhering to these steps ensures that contractors, subcontractors, and material suppliers can protect their right to payment.

Eligibility for Mechanics Lien Rights

Any individual or company contributing labor, materials, or equipment for the construction, renovation, or removal of structures on a property, including those providing general contractor services, can claim lien rights in Massachusetts. This includes general contractors, subcontractors, service professionals, and equipment rental providers. However, suppliers to suppliers and subcontractors further down the chain, such as sub-sub-subcontractors, are excluded from lien rights.

Notice Requirements

To preserve lien rights, certain parties must send a preliminary notice, including a written notice from the contractor. If a party does not have a direct contract with the general contractor (GC) or property owner, they must issue a Notice of Identification within 30 days of first providing labor or materials. Failure to do so will limit the lien to the amount owed to the first-tier subcontractor at the time the Notice of Contract is filed.

Filing Deadlines

A valid mechanics lien Massachusetts requires two documents: the Notice of Contract (or Subcontract) and the Statement of Account.

Each document has its own deadline:

• Notice of Contract or Subcontract must be recorded by the earliest of the following:
  • 60 days after the filing of a Notice of Completion
  • 90 days after the filing of a notice of termination
  • 90 days after the last provision of labor or materials
• Statement of Account must be filed by the earliest of these deadlines:
  • 90 days after the Notice of Substantial Completion
  • 120 days after the Notice of Termination
  • 120 days after the last furnishing of labor or materials

Massachusetts law also allows filing a lien before the issuance of a Notice of Substantial Completion or Notice of Termination.

Form Requirements

Filing a mechanics lien in Massachusetts is a two-step process, with each form requiring specific information from a written contract:

Notice of Contract (for direct contractors) must include:

• Date of the contract
• Property owner’s identity
• Contractor’s identity
• Property description

Notice of Subcontract (for other participants) must contain:

• Contract date
• Hiring party’s identity
• Claimant’s identity
• Property Description
• Contract value, including:
  • Initial contract price
  • Change orders (approved, pending, disputed)
  • Payments received
• Claimant’s mailing address
• Statement of Account should specify:
• Outstanding amount
• Property Description
• Owner’s identity

Including claimant information and details about services or materials provided is recommended.

Recording Requirements

All forms must be recorded in the registry of deeds for the county where the property is located. Although deadlines differ, the forms can be filed together. If the claimant lacks direct contact with the property owner, they must send a copy of the lien by certified mail with the return receipt requested. General contractors are not required to send this copy, but doing so can facilitate payment. Obtaining partial lien waivers from parties involved in a project should be standard practice before making payments, ensuring that services rendered are acknowledged and financial obligations are secured.

Enforcing the Lien

Mechanics lien claimants must initiate legal action to enforce their lien within 90 days of filing the Statement of Account. Additionally, within 30 days of starting the enforcement action, the claimant must record a certified copy of the Complaint for Enforcement of Lien in the registry of deeds. Failure to meet these deadlines will invalidate the lien.

Property Owner’s Rights and Responsibilities

As a property owner, it is essential to understand your rights and responsibilities regarding mechanics liens. If a mechanics lien is filed against your property, you have the right to receive notice of the lien and to contest its validity. You also have the responsibility to ensure that all contractors and subcontractors working on your property are properly licensed and insured. Additionally, it is wise to include a provision in your contract with the general contractor that requires them to obtain lien waivers from all subcontractors and suppliers. This can help protect your property from unexpected liens and ensure that all parties are paid appropriately.

Lien Cancellation and Waiver

A mechanics lien can be canceled or waived in several ways. The lien claimant can sign a notice of dissolution of lien, which must be recorded in the registry of deeds where the notice of contract was recorded. Alternatively, the property owner can obtain a bond from a surety company authorized to do business in Massachusetts, which can be used to discharge the lien. It is also possible to negotiate a partial lien waiver with the lien claimant, which can release some or all of the property from the lien. These options provide flexibility for property owners to manage and resolve lien claims effectively.

Bond Claim Requirements

If a payment bond has been obtained and recorded for a construction project, a bond claim can be filed by the lien claimant. The claimant must submit their claim against the bond within 90 days of their last date of work at the site. The bond claim must be in writing and must include a detailed description of the work performed and the amount claimed. The surety company will then review the claim and determine whether to pay the claimant or contest the claim. This process provides an additional layer of security for contractors and subcontractors, ensuring they have the means to recover payment even if a lien is not feasible.

How to File a Mechanics Lien in Massachusetts?

Payment delays and non-payment are frequent challenges in the construction industry. With complex contracts, pay-when-paid clauses, and disputes over workmanship, contractors and suppliers often face barriers to receiving prompt payments. Massachusetts mechanics liens offer a powerful legal solution to ensure fair compensation for construction services and materials provided.

Mechanics liens create a security interest in the property, motivating owners and contractors to settle payments. This guide breaks down the necessary steps to file a mechanics lien in Massachusetts and protect your payment rights.

Filing a Massachusetts Mechanics Lien

1. Verify Eligibility and Requirements: Before filing a mechanics lien, determine if you meet the eligibility criteria for general contractor services. Mechanics lien rights apply to contractors, subcontractors, service providers, and suppliers directly involved in construction, alteration, or improvement projects. However, lower-tier participants like sub-subcontractors or suppliers to other suppliers may not be eligible for lien protection.

Additionally, those working without a direct contract with the property owner or general contractor must submit a Notice of Identification within 30 days of their first contribution to maintain full lien rights.

2. Required Documents and Form Details

Massachusetts mechanics liens consist of two key filings:

• Notice of Contract (or Notice of Subcontract)
• Statement of Account

Each filing requires specific information to be valid:

Notice of Contract or Subcontract:

• Contract date
• Identity of the property owner
• Identity of the contractor or hiring party
• Property Description
• Contract value and any changes

Statement of Account:

• Amount due
• Property details
• Owner’s name as listed in the notice
• Optional: Claimant’s name, address, and labor or materials provided

Filing and Recording Process

Determine Property Type:
Identify whether the property is categorized as recorded land or registered land. This distinction affects where and how the lien documents must be filed.

• Recorded Land: E-recording may be available, and the recorded notice must be mailed to all parties involved.
• Registered Land: Requirements are stricter. Contact the registered land office to verify filing protocols and send the notice, payment, and return envelope to the correct location.

Ensure filing fees are accurate to avoid delays or rejections, as liens are time-sensitive. You can confirm fees with the applicable office.

Serving the Lien

Serving the mechanics lien to the property owner is required for those without a direct contract. A contractor written notice must be provided to inform the owner about the termination and any obligations. Send the lien via certified mail with a return receipt to confirm delivery. While not mandatory for general contractors, providing notice ensures all parties are informed, increasing the chances of prompt payment.

Enforcing or Releasing a Mechanics Lien

A Massachusetts mechanics lien is valid for 90 days from the filing date.

During this period, you can either:

• Enforce the Lien: File a foreclosure lawsuit to recover payment. Within 30 days of starting the action, submit an attested copy of the Complaint for Enforcement of Lien to the registry of deeds.
• Release the Lien: If payment is received, release the lien by filing a notice with the registry to clear the property’s title.

While mechanics liens are effective tools for securing payment, they may face legal challenges. Be prepared for potential disputes and the need to enforce the lien through legal action. Properly filing and serving the lien according to Massachusetts law ensures the best chance of receiving compensation for your work.

Recording a mechanics lien empowers construction professionals to protect their financial interests, offering a powerful solution when payment issues arise.

Get in Touch

Filing a mechanics lien in Massachusetts offers contractors, subcontractors, and suppliers a powerful legal tool to secure payment for their work. By following the necessary steps, including timely filing, serving notices, and complying with Massachusetts-specific rules, construction professionals can safeguard their financial interests. Subcontractor construction management services are integral in establishing and securing mechanic’s liens, ensuring subcontractors’ financial protection and rights to payment for labor and materials furnished for real property improvements.

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.