In Mississippi, contractors and suppliers who don’t receive payment on a construction project can protect their right to payment by filing a mechanics lien. This legal mechanism grants the unpaid party a claim on the property, acting as a form of payment assurance.
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 Mississippi 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, conditions, and timeframes to adhere to when filing a mechanics lien Mississippi.
Key Takeaways
- Eligibility for Filing a Mechanics Lien: Contractors, subcontractors, material suppliers, licensed architects, and engineers in Mississippi can file a mechanics lien to secure payment, while unlicensed parties cannot.
- Filing Deadlines and Requirements: A Mississippi mechanics lien must be filed within 90 days of last providing labor or materials, and it must include specific details like claimant information, property description, and required statutory notice.
- Preliminary Notice and Lien Priority: Sending a preliminary notice is crucial for protecting lien rights. Mississippi follows the “first-in-time, first-in-right” rule, with mechanics liens taking precedence over later-filed liens, though tax liens always have priority.
Understanding Mechanics Liens in Mississippi
A mechanics lien is a powerful tool that allows contractors, subcontractors, and suppliers to secure payment for work or materials provided to a property in Mississippi. This legal document attaches to the property’s records, serving as a warning to potential buyers and financiers about outstanding payments related to the property. Governed by the Mississippi Mechanics Lien Law, mechanics liens in Mississippi have specific requirements and procedures that must be followed to ensure their validity.
To file a mechanics lien in Mississippi, a claimant must meet certain criteria. This includes providing labor services or materials to a construction project and having a valid contract or agreement in place. Additionally, a pre-lien notice must be served to the property owner and other interested parties.
This notice must be sent via registered or certified mail or statutory overnight delivery and must include specific information such as the claimant’s name and address, the property owner’s name and address, and a description of the labor or materials provided. Adhering to these requirements is crucial for maintaining lien rights and ensuring the lien is enforceable.
Who Is Eligible to File a Mississippi Mechanics Lien?
In Mississippi, mechanics lien rights are granted to contractors, subcontractors, and material suppliers who provide materials or services for real estate improvements. Additionally, licensed architects and engineers offering plans, designs, or other related services, as well as registered land surveyors, are eligible to file liens for their work on a property.
These rights, however, are limited to first and second-tier subcontractors and suppliers. It’s important to note that if a payment bond is present on the project, claimants must seek protection through the bond instead of filing a lien. Lien claimants have specific rights and obligations under Mississippi law, including the requirement to cancel a mechanics lien upon request from a property owner once payment has been made.
Can an Unlicensed Contractor File a Mississippi Mechanics Lien?
No, according to Mississippi law, contractors who are performing work that requires a license cannot file a mechanics lien if they don’t possess the necessary license. Additionally, contractors or subcontractors who enter into agreements with unlicensed parties will also lose their lien rights. This rule extends to architects, engineers, and land surveyors as well, who must be properly registered to be eligible for mechanics lien rights.
What Is the Deadline to File a Mechanics Lien Under Mississippi Mechanics Lien Law?
In Mississippi, a Claim of Lien must be filed within 90 days from the date the lien claimant last provided labor or materials to the project.
What Information Must Be Included in a Mechanics Lien Mississippi?
The structure and content of a Mississippi mechanics lien claim are governed by Miss. Code §85-7-405 and must include the following information:
- claimant’s information
- amount claimed
- owner’s information
- property description
- last date of furnishing labor or materials
- required statutory notice language:
This claim of lien expires and is void one hundred eighty (180) days from the date of filing if a payment action is not filed by the claimant within that time period.
Notice to owner of property: you have the right to contest this claim of lien pursuant to Mississippi law.
Are Attorney Fees, Collection Costs, or Other Expenses Allowed in the Lien Amount?
Generally, no. The amount of a mechanics lien Mississippi is restricted to what is owed to the lien claimant based on the terms of their contract.
However, in a lien enforcement case, the court has the authority to grant costs and attorney’s fees to the winning party. Interest will also be factored into the final amount.
Does a Mississippi Lien Take Priority Over Pre-Existing Mortgages or Construction Loans?
Mississippi typically adheres to the “first-in-time, first-in-right” principle. Mechanics liens in Mississippi take precedence over any liens or encumbrances recorded after the mechanics lien. However, tax liens always hold priority over mechanics liens, regardless of when they were filed.
Why Should You Send a Mississippi Preliminary Notice?
Sending notice is crucial for safeguarding your mechanics lien rights.
In Mississippi, specific parties must send a preliminary notice to preserve a valid lien claim. However, it’s a good practice for everyone involved in a construction project to provide preliminary notice, even if not mandated. Doing so fosters clear communication, ensuring that property owners, lenders, and general contractors are aware of who is contributing to the project. This is particularly helpful on larger projects where many parties are involved.
Who Is Required to Send a Mississippi Preliminary Notice, and Who Should Receive It?
Parties that don’t have a direct contract with the owner or general contractor must send a preliminary notice to the general contractor (or to the owner if no GC is involved). Additionally, general contractors and subcontractors must provide a list of all subcontractors and suppliers they’ve hired when requested by the owner.
It’s important to note that Mississippi also requires a Notice of Intent before filing a lien. This notice, referred to as a Pre-Lien Notice for Residential Projects, is necessary before proceeding with the lien filing.
How Do You Send a Preliminary Notice in Mississippi Using Registered or Certified Mail?
Preliminary notice must be sent via registered or certified mail, statutory overnight delivery, or email with confirmed receipt. The list of subcontractors and suppliers, as required by Mississippi lien law, must be “provided” to the property owner.
It’s important to note that preliminary notice is considered delivered as soon as it is sent.
How to File a Mechanics Lien in Mississippi?
If you’re considering filing a mechanics lien in Mississippi to ensure payment on a construction project, this guide will help you navigate the entire process.
Mechanics Lien Requirements Begin Before Filing
Before filing a mechanics lien, it’s crucial to be aware of any preliminary notice or timing requirements that must be met to ensure the validity of your lien. Filing a lien can be complex and time-consuming, but if you’re ready to proceed, follow these steps to get started.
Ensuring Your Mississippi Mechanics Lien Includes All Necessary Information
Your Mississippi mechanics lien must include specific information to be valid. Mechanics liens are legally created rights, and they must strictly follow the law’s requirements and deadlines.
Failure to provide all necessary information or submitting incorrect details can invalidate your lien.
Therefore, it’s important to gather and include the following information:
- Claimant’s name
- Amount owed
- Property owner’s information
- Description of the property subject to the lien
- Date the claim was due (typically the last date labor or materials were provided)
- A statement regarding lien expiration per Section 85-7-421(1)
- A notice to the property owner stating their right to contest the lien
Important Notice Regarding Mississippi Mechanics Liens
Mississippi law requires certain statements to be included in the lien, such as the expiration date and the owner’s right to dispute the lien. The required language is as follows:
“This claim of lien expires and is void one hundred eighty (180) days from the date of filing of the claim of lien if a payment action is not filed by the claimant within that time period.
Notice to owner of property: You have the right to contest this claim of lien pursuant to Mississippi law.”
Failure to include these statements will invalidate the lien, so be sure to use the correct statutory language.
Filing a Mississippi Mechanics Lien
Once your lien is prepared with all the necessary details, it’s time to file.
Follow these steps:
- Prepare and sign the lien document with all required information.
- Submit the lien to the chancery court clerk’s office in the county where the property is located. This can be done by mail, delivery service, or in person.
- Include the correct filing fees. Be sure to verify the amount, as incorrect fees can delay the process.
- Ensure your document complies with any country-specific requirements, such as margin or cover sheet specifications.
In Mississippi, a lien must be both filed and served within a short timeframe. After filing the lien, a copy must be served to the property owner (or the contractor if the owner’s address is unavailable) within two business days. This can be done via registered mail, certified mail, or statutory overnight delivery.
If the property owner is listed with the Secretary of State’s office, you may send the lien to their registered agent. Subcontractors and material suppliers must also serve the general contractor similarly.
Once your Mississippi mechanics lien is filed and served, it becomes a powerful tool to ensure you get paid. However, liens can be challenged or disputed, and you may need to enforce them through foreclosure to receive payment. Keep in mind that a valid lien is effective for 180 days from the filing date, and following these steps ensures you are treated fairly throughout the process.
Enforcing and Canceling a Mechanics Lien
Once a mechanics lien is filed, the lien claimant can enforce it to secure payment. The first step in enforcement is to send a true and accurate copy of the claim of lien to the property owner and contractor within two business days of filing. This ensures that all parties are aware of the lien and the outstanding payment.
To maintain the lien’s validity, the lien claimant must file a payment action within 180 days of filing the lien. If this action is not taken, the lien will expire and become void. This step is critical to keep the lien active and enforceable.
If the property owner pays the claimant, the lien can be canceled by filing a discharge of mechanics lien claim. This discharge must be filed with the county clerk’s office and must include specific information such as the claimant’s name and address, the property owner’s name and address, and a statement that the lien has been satisfied. Properly canceling the lien ensures that the property records are updated and clears any encumbrances related to the lien.
Common Mistakes to Avoid
When filing a mechanics lien in Mississippi, several common mistakes can render the lien invalid and unenforceable. One of the most frequent errors is failing to serve the pre-lien notice to the property owner and other interested parties. This oversight can result in the lien being dismissed, as the pre-lien notice is a critical step in the lien process.
Another common mistake is missing the filing deadline. In Mississippi, a mechanics lien must be filed within 90 days of the claimant’s last work or delivery of materials. Failing to meet this deadline can invalidate the lien, leaving the claimant without legal recourse to secure payment.
Additionally, claimants should avoid making false or misleading statements in the lien claim. Such inaccuracies can not only invalidate the lien but also lead to penalties and fines. Ensuring that all information in the lien claim is accurate and truthful is essential for maintaining its enforceability.
Get in Touch
Filing a Mississippi mechanics lien is a critical tool for contractors and suppliers to secure payment for their work on construction projects. By following the necessary steps outlined in this guide, you can ensure your lien is valid and effective. Attention to detail is key, from understanding eligibility and deadlines to including the required information and sending preliminary notices.
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.
