In New Hampshire, contractors and suppliers can file a mechanics lien to ensure they receive payment for their work on construction projects. This legal instrument grants the unpaid party a security interest in the property.

Given the complexity of New Hampshire mechanics lien laws, it is crucial to consult New Hampshire construction attorneys for effective navigation and proper filing of these liens.

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 New Hampshire mechanics lien law and state-specific rules and regulations.

This page outlines the necessary rules, requirements, and deadlines for filing a mechanics lien in New Hampshire.

Key Takeaways

• Eligibility for Filing a Mechanics Lien: In New Hampshire, general contractors, subcontractors, laborers, and material/equipment suppliers can file a mechanics lien. Contractors with a direct contract with the property owner have automatic lien rights, providing them with more expansive legal protections. Professional designers, such as architects and engineers, also likely qualify, while subcontractors and suppliers to suppliers do not have lien rights. Equipment lessors may be eligible if they are within two tiers of the primary contractor.
• Deadline and Process for Filing: Mechanics liens must be recorded within 120 calendar days from the last day labor or materials were provided for the project. A unique aspect of New Hampshire law requires claimants to file an Ex Parte Petition to Secure Mechanics Lien with the court before recording the lien, which does not initially require notifying the property owner.
• Lien Priority and Requirements: Mechanics liens in New Hampshire generally take precedence over pre-existing liens and encumbrances, except for conventional mortgages recorded before labor or materials were supplied and tax liens. The state does not require liens to include a legal property description or notarization, and lien waivers are not regulated, so careful review is essential.

Who Can File a New Hampshire Mechanics Lien?

In New Hampshire, general contractors, subcontractors, laborers, and suppliers of materials or equipment have the right to file a mechanics lien. While there hasn’t been specific case law on this matter, it’s probable that professional designers, engineers, and surveyors also qualify for lien rights. Subcontractors can claim the same lien as general contractors, provided they have a contract with the owner or the owner’s agent.

However, subcontractors and suppliers to suppliers do not have mechanics lien rights in New Hampshire. The state’s statute does not explicitly mention equipment lessors, but it is likely they would be eligible for lien protection if they are within two tiers of the primary contractor.

When Is the Deadline to File a New Hampshire Mechanics Lien?

In New Hampshire, you must record a mechanics lien within 120 calendar days from the last day labor or materials were provided for the project.

Acting promptly when a payment dispute arises can impact the recoverable amount under mechanics lien laws.

Do I Need to Send Notice That the Lien Was Recorded?

Yes, in New Hampshire, a mechanics lien is not recorded until legal action is initiated, with the court involved from the outset. It is important to understand the different requirements for various parties involved in a construction project, noting how pre-lien notices differ across states and project types. To establish a mechanics lien, the claimant must file an Ex Parte Petition to Secure Mechanics Lien with the court.

This can be done without notifying the owner or other parties as long as a Notice of Attempt to Lien was previously given if the claimant is not the general contractor. After the court grants the petition, the lien can be recorded, followed by the filing of a petition, order, and writ of attachment. Once the order is signed by the court and the lien is recorded, the owner must be served personally by a process server.

Does My New Hampshire Lien Have Priority Over Pre-existing Mortgages or Construction Loans?

Typically, yes. In New Hampshire, mechanics lien have priority over all pre-existing liens or encumbrances except for conventional mortgages and tax liens. For conventional mortgages, the “first in time” rule applies, meaning if the mortgage was recorded before labor or materials were supplied to the project, it takes precedence over later mechanics liens.

For construction mortgages, mechanics liens usually take priority unless

1) the funds were disbursed to subcontractors or suppliers, or

2) the borrower provides an affidavit stating that a disbursement from the lender is for completed work and that all subcontractors and suppliers have been or will be paid from that disbursement.

Does the New Hampshire Lien Need a Legal Property Description?

No. In New Hampshire, the ex parte petition must contain a “reasonably accurate description of the land improved.”

Does the New Hampshire Lien Need to Be Notarized?

No. The documents need to be filed in court and must be signed by either the claimant or the claimant’s attorney.

What Are the Rules for Lien Waivers?

New Hampshire does not mandate specific statutory lien waiver forms, so any lien waiver form can be used. However, because lien waivers are not regulated, it’s crucial to carefully review and understand them before signing.

State law in New Hampshire does not clearly address whether contractors and suppliers can waive their lien rights before starting any work on a project. Therefore, it is advisable to proceed with caution in these matters.

5 Essential Things to Know About New Hampshire Mechanics Liens

Contractors and suppliers have strong lien rights in New Hampshire. If payment isn’t received for a job, they can file a lien to expedite payment and protect their interests.

Here are five essential things to understand about New Hampshire’s mechanics lien laws:

• Eligibility for Mechanics Liens: In New Hampshire, general contractors, subcontractors, laborers, and material/equipment suppliers are entitled to mechanics lien rights. However, sub-sub-subcontractors (likely) and suppliers to suppliers (definitely) do not have these rights. Although not explicitly mentioned in the statute, equipment lessors within two tiers of the general contractor probably have lien rights. Following a recent amendment, professional designers like architects and engineers now also have the right to file a mechanics lien.
• Notarization Not Required: Mechanics liens in New Hampshire do not need to be notarized.
• Simple Filing Deadline: The deadline to file a mechanics lien in New Hampshire is 120 days from the date the participant last provided labor or materials to the project.
• Importance of Timely Preliminary Notice: Preliminary notice is required for all participants who do not have direct contact with the property owner. While there is no mandatory deadline for sending this notice, it is crucial to send it early. The lien amount is limited to what the property owner owes the general contractor at the time the preliminary notice is served. Proof of delivery is important, so sending the notice via certified mail with the return receipt requested is advisable.
• Inclusion of Certain Fees in the Lien: Unlike many states where a mechanics lien covers only the unpaid contract amount, New Hampshire’s law is unclear about whether liens can include profit, overhead, interest, finance charges, attorney’s fees, court costs, and consequential damages. It’s not guaranteed, but some fees may be included.

Generally, mechanics liens in New Hampshire take precedence over pre-existing liens and other encumbrances, with exceptions for tax liens and pre-recorded conventional mortgages.

Conventional mortgages take precedence if they were recorded before labor or materials were provided if proceeds were given to subcontractors and suppliers, or if there is an affidavit from the borrower indicating a disbursement for completed work and that all subcontractors and suppliers have been or will be paid from that disbursement.

How Do I File a New Hampshire Mechanics Lien?

Like in all states, contractors, subcontractors, and suppliers in New Hampshire have protections when dealing with payment issues. If they haven’t received payment for their work on a construction project, they have the right to file a mechanic’s lien, a legal claim against a property to secure payment for labor or materials provided, similar to other states. However, the process for filing a mechanic’s lien in New Hampshire is somewhat unique.

The procedure for filing a mechanic’s lien in New Hampshire involves additional steps and a peculiar timeline. Continue reading to understand the process of filing a mechanics lien New Hampshire.

Preliminary Notices Are Mandatory

For private projects, subcontractors, sub-subcontractors, and suppliers in New Hampshire must send preliminary notices. General contractors and those directly contracted with the property owner are exempt from this requirement.

State statutes require sending these notices before delivering labor or materials to the project. Practically, there is some flexibility, allowing notices to be served up until the lien is filed, though it might not cover the entire contract amount by then. While not required for public jobs, sending preliminary notices is recommended.

Monthly Check-ins with Project Owners

New Hampshire has a unique rule requiring contractors to submit a written account of labor and materials furnished every 30 days. This rule helps keep the project owner informed and ensures they can cover the contractor’s costs. It might seem tedious, but it is beneficial for both parties and aids in lien-related lawsuits.

No Requirement for Notice of Intent to Lien

New Hampshire law does not mandate sending a Notice of Intent to Lien (NOI). Although optional, sending an NOI can expedite payment as it serves as a visibility document.

120-Day Deadline for Filing a Lien

Contractors have 120 days from the last furnishing of materials or labor to file a mechanics lien. Straightforward but crucial to remember, especially given the unique requirement of filing a lawsuit first.

Filing a Lawsuit Before the Lien

In New Hampshire, filing a lawsuit is a prerequisite to filing a mechanics lien. This step, which must be approved by the court, can complicate the 120-day filing window. Contractors can file an Ex Parte Petition to Secure Mechanics Lien, a specific procedure that doesn’t require serving the other party initially.

Different Enforcement Deadlines

Unlike other states, New Hampshire requires the enforcement of a lien to begin with a lawsuit, fulfilling this requirement before the lien is filed. The Ex Parte Petition to Secure Mechanics Lien covers this need, simplifying the process.

Step-by-Step Guide to Filing a Mechanics Lien in New Hampshire

Step 1: File a Lawsuit, Ex Parte

The first step in New Hampshire is filing a lawsuit, unlike other states where it follows lien filing. Contractors have up to 120 days from last furnishing to file an Ex Parte Petition to Secure a Mechanics Lien. It’s crucial to allow sufficient time for court approval and lien filing.

Given the complexities of mechanics lien laws in New Hampshire, it is essential to seek expertise from New Hampshire construction attorneys to navigate the intricate filing process and protect payment rights.

Step 2: File the Lien with the County Clerk

After court approval, file the mechanics lien at the county clerk’s office where the project is located, not where your business is based. This must be done within the same 120-day window as the petition filing, so time management is critical.

Step 3: Serve the Lien on the Property Owner

The lien must be served on the property owner as soon as possible. Early notification can expedite payment, making it important to serve the lien promptly.

Step 4: Proceed with the Lawsuit or Remove the Lien

Decide whether to pursue the lawsuit to foreclose the lien or remove it. Compliance with preliminary notice laws and monthly check-ins will support your case in court. More likely, the property owner will settle the payment, allowing you to remove the lien.

Unique but Effective Lien Rights

New Hampshire’s lien filing process is distinct and may seem complex. However, lien rights provide a crucial recourse for payment disputes. By adhering to New Hampshire’s specific mechanics lien laws, contractors can secure their payments and safeguard their businesses.

Get in Touch

While New Hampshire’s lien filing process is unique and may seem complex, understanding and adhering to its specific mechanics lien laws can secure your payments and protect your business interests. Lien rights offer a vital recourse in payment disputes, ensuring that contractors and suppliers can recover their due compensation.

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!