In Oklahoma, when contractors or suppliers aren’t paid for their work on a construction project, they can utilize a mechanics lien to ensure they receive compensation. A mechanics lien grants the unpaid party a legal claim against the property, and understanding its validity and filing procedures is crucial.
At CRM Lien Services, we specialize in ensuring that you get paid quickly and reliably. We can prepare and file mechanics liens for you, taking into account Oklamo mechanics lien law and state-specific rules and regulations.
This guide outlines the essential rules, requirements, and timelines for successfully filing a Mechanics lien Oklahoma.
Key Takeaways
- Eligibility for Mechanics Liens in Oklahoma: Contractors, suppliers, and other professionals involved in property improvements, such as architects and engineers, have the right to file a mechanics lien in Oklahoma if their work results in a tangible improvement to the property. This right applies whether the work is performed under an oral or written contract, ensuring that individuals providing labor or materials can establish a lien on the property.
- Filing Requirements and Deadlines: Mechanics lien claims must be filed within 4 months for direct contractors and 90 days for other claimants, with specific details and notarization required for the lien to be valid.
- Importance of Proper Notice: Sending a preliminary notice and notifying the property owner after filing a lien is crucial for compliance and may expedite payment, ensuring that the lien process is effective and enforceable.
Who Is Eligible to File a Mechanics Lien in Oklahoma?
In Oklahoma, anyone who supplies labor or materials for the construction, modification, or repair of a property is eligible to claim mechanics lien rights to secure payment. This protection covers landscapers, surveyors, architects, engineers, and construction managers. For architects and engineers, a valid mechanics lien requires that their work leads to an actual improvement to the property, not just unexecuted plans.
Equipment lessors in Oklahoma have lien rights but with specific limitations. They cannot claim lien rights on properties that are exempt as homesteads or those used for agricultural purposes.
It’s important to note that Oklahoma staffing companies may have lien rights depending on the specifics of their contracts.
What Information Should Be Included in an Oklahoma Mechanics Lien?
An Oklahoma Lien Statement, as regulated by Okla. Stat. tit. 42 §143.1, must include the following details:
- The lien amount;
- A description of the labor and/or materials supplied;
- Information about the property owner;
- Details of the party who hired the claimant;
- Claimant’s information;
- A legal description of the property; and
- An affidavit confirming compliance with pre-lien requirements (if applicable).
What Is the Filing Deadline for an Oklahoma Mechanics Lien?
In Oklahoma, the deadline for filing a lien is based on the lien claimant’s specific involvement in the project.
- For original contractors (those with a direct contract with the property owner), a lien statement pursuant to the requirements must be filed within 4 months of the last date labor or materials were provided to the property.
- Other lien claimants (those without a direct contract with the owner) must file their lien statement pursuant to the statute within 90 days of the last date they furnished labor or materials to the property.
Typically, minor tasks like corrective work, punch list items, or warranty repairs will not extend the mechanics lien filing deadline.
Is Notarization Necessary for an Oklahoma Mechanics Lien?
Yes, under Oklahoma law, a mechanics lien must be notarized to be valid and eligible for recording.
Must I Notify Others When a Mechanics Lien Is Filed in Oklahoma?
Yes, notice that the lien has been recorded must be provided to the property owner. Although Oklahoma law mandates that the county clerk send notice to the owner within 5 days of the lien’s recording, it is generally wise for the lien claimant to notify the owner directly as a precaution. Additionally, a pre-lien notice pursuant to the requirements must be sent to the original contractor and property owner within a specified time frame to protect the lien rights.
If the property owner cannot be located within 60 days after the lien is recorded, the lien claimant is required to file an affidavit showing due diligence. The notice must then be delivered to the property’s occupant, or if there is no occupant, posted on the property itself. The notice should be sent to the owner via certified mail with a return receipt requested.
Does an Oklahoma Lien Take Precedence Over Existing Mortgages or Construction Loans?
Typically, no. Mechanics lien take precedence over other claims on the property, such as construction loans and mortgages, only if those encumbrances were recorded after the work on the project began. However, a laborer’s mechanics lien always holds priority over a construction loan, even if the lien was recorded after the loan.
The existence of trust funds does not prevent the filing or enforcement of specific types of liens, such as those for labor or materials on real property. Such a lien ensures that legal obligations regarding the proper handling of trust funds are met.
When it comes to competing mechanics liens, laborers’ liens are given first priority, while all other mechanics liens are treated equally.
Do I Need to Send an Oklahoma Preliminary Notice?
It depends. Any party that does not have a direct contract with the property owner is required to send a preliminary notice, also known as pre-lien notice if either of the following conditions is met:
- The property is an owner-occupied dwelling, or
- The claimant’s total claim exceeds $10,000 on a non-residential project. Oklahoma defines a residential project (different from an owner-occupied residential project) as a single or multi-family residence with four or fewer units, none of which are occupied. No preliminary notice is necessary for such residential projects.
If either of these conditions applies, the lien claimant must provide preliminary notice to both the general contractor and the property owner.
It’s unclear whether the general contractor is obligated to send preliminary notice to the property owner on an owner-occupied project, but doing so might be advisable to ensure compliance.
How Should the Oklahoma Pre-Lien Notice Be Sent?
In Oklahoma, the preliminary notice is required to be “sent” to the general contractor and the property owner. While the law does not specify the method, it is typically recommended to use certified mail for this purpose.
Additionally, the lien claimant should retain a copy of the notice along with an affidavit of delivery, which can be attached to the lien statement.
5 Essential Things to Know About Oklahoma Mechanics Lien
Contractors and suppliers enjoy strong lien rights in Oklahoma. If they aren’t paid for their work on an Oklahoma project, they can file a mechanics lien to expedite payment and protect their interests. However, these liens come with specific rules and requirements.
Here are 5 key points to understand about Oklahoma’s mechanics lien law.
1. Limited Lien Rights for Some Parties: Anyone who provides labor or materials for property improvement in Oklahoma can file a mechanics lien. This includes landscapers, surveyors, architects, engineers, and construction managers. While equipment lessors also have lien rights, these are limited by whether the property is used for agricultural purposes or qualifies for a homestead exemption. For engineers and architects, lien rights apply only if their work results in an actual improvement to the property.
2. Filing Deadlines Vary by Role: The deadline for filing a mechanics lien in Oklahoma depends on the participant’s role in the project. General contractors who have direct contracts with the property owner must file their lien within 4 months of their last work date. Subcontractors, however, have only 90 days from their last date of providing services or materials to file a lien.
Once the lien is filed, a notice must be sent to the property owner within 5 days via certified mail with a return receipt requested. While this is the responsibility of the county clerk, it’s advisable for the lien claimant to send the notice as well.
3. Preliminary Notice Required for Subcontractors: Subcontractors who do not have direct contact with the property owner is required to send preliminary notice in certain situations: if the property is owner-occupied or if the project is non-residential and the claim exceeds $10,000. This notice must be given to both the general contractor and the property owner. On unoccupied residential properties (single or multi-family), no notice is required. This preliminary notice is crucial as it affects the validity of a lien affecting the property, ensuring compliance with pre-lien notice provisions within the specified time frame.
It’s unclear whether general contractors must provide preliminary notice to the property owner, but doing so is generally recommended.
4. Legal Property Description is Mandatory: A legal property description is required to be included in the mechanics lien in Oklahoma. Additionally, the lien must be notarized and supported by an affidavit.
5. Laborers’ Liens Have Priority Over Construction Loans: In Oklahoma, mechanics liens usually do not take precedence over existing mortgages and construction loans. However, laborers’ mechanics liens always have priority over construction loans. Among competing mechanics liens, laborers’ liens take first priority, while all other liens share equal priority.
How to File a Mechanics Lien in Oklahoma?
Payment issues are a common challenge in the construction industry. Fortunately, the Oklahoma mechanics lien is a powerful tool for addressing these problems. While it shouldn’t be the first course of action, understanding how to use the lien process effectively in Oklahoma is crucial for contractors, subcontractors, and suppliers.
Familiarity with Oklahoma lien laws is essential for navigating the legal framework for filing a mechanic’s lien in the state.
Let’s explore how professionals in Oklahoma can protect their right to payment through a mechanics lien.
In Oklahoma, anyone providing labor or materials for property improvements, including contractors, specialty subcontractors, and material suppliers, can file a mechanics lien. This right extends to architects, engineers, landscapers, and sometimes even equipment lessors. However, for architects and engineers, their work must result in a tangible improvement to the property—plans alone are not sufficient.
Construction staffing companies may or may not have lien rights depending on the terms of their contract.
Are There Notice Requirements Before Filing a Lien?
It depends on the claimant’s relationship with the property owner. Direct contractors are not required to send preliminary notice. Other participants must send notice unless:
- The work is under $10,000, or
- The project involves a residential property with four or fewer units.
For commercial properties or projects exceeding $10,000, notice must be given within 75 days of the last work date.
Deadline for Filing an Oklahoma Mechanics Lien
Deadlines vary based on the claimant’s role. Those with a direct contract with the owner have 4 months from their last service date to file a mechanics lien in Oklahoma. Subcontractors and suppliers have 90 days from their last service date.
We offer free mechanics lien forms created by attorneys and trusted by many in the industry.
Sending Notice to the Owner After the Lien Is Recorded
Once the lien is recorded, the owner must be notified. Although the court clerk is supposed to send this notice within 5 days, it’s advisable for the claimant to send it as well, which may speed up the resolution.
If the owner cannot be found within 60 days, the claimant can file an affidavit of due diligence and then serve notice to the property’s occupant or post it on the property.
What Happens After Filing a Lien?
If payment is still not received, the next step may be to enforce or foreclose the lien, which involves filing a lawsuit. The deadline for enforcement is 1 year from the lien filing date, but claimants must wait at least 90 days after filing before enforcing the lien, giving them roughly 9 months to take action.
An additional step to consider before filing a lawsuit is sending a Notice of Intent to Foreclose. This document warns that legal action will follow if payment is not made soon. This often prompts resolution without the need for court proceedings. If this notice doesn’t work, the claimant can still proceed with enforcement.
Get in Touch
Navigating the mechanics lien process in Oklahoma is crucial for contractors, suppliers, and other construction professionals to secure their right to payment. Understanding who is eligible to file a lien, the necessary steps for filing, and the importance of meeting all legal requirements ensure that your lien is valid and enforceable.
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.
We would love to work with you and help you lower your risk and get paid fast!
