Frequently Asked Questions (FAQ)

1. Q. What is a Pre-Lien Notice?
A. This is a notice sent to the property owner and any other interested party notifying them of your right to file a mechanic’s lien or construction lien. Many States require this notice.

2. Q. What is the purpose of the pre-lien notice?
A. It establishes your legal right with the homeowner and other interested parties to file a lien on residential property and in the case of sub-contractors notifies all parties of your participation in the job since your contract is not directly with the property owner. Pre-Liens are also a useful Accounts Receivable Management tool because it portrays you as professional and forthcoming about your right to compensation for work performed and/or material provided.

3. Q. When do I need to serve a pre-lien notice?

A. If you are acting as the General Contractor and have a written contract, the notice should be in your contract. You should seek the advice of an attorney to draft the notice. If you are acting as a sub-contractor, generally you have 45 days from the first date work has been performed and/or material has been provided. It’s important to understand, each state has its own statutes. Please Call LSSI for your specific State statutes.

4. Q. What happens if I do not serve a pre-lien notice?

A. If you fail to provide the homeowner and all interested parties with a pre-lien notice on a residential job you cannot file an enforceable mechanic’s lien. Pre-Liens are generally a sound business practice on commercial projects as well due to their use as an accounts receivable tool.

5. Q. Do I need an attorney to serve a pre-lien notice?

A. We recommend you consult an attorney ANY TIME YOU FEEL AN ATTORNEY’S ADVICE IS NECESSARY. However, it is sound business management policy to pre-lien every single job in which you are involved. And usually to draft a pre-lien an attorney is not required. A pre-lien notice is a document that requires deed and title research and other information and can be drafted by credible lien service companies.

6. Q. Why should I use Lien Specialists Services, Inc. if I can do this myself?
A. There are many reasons to use Lien Specialists Services, Inc. First, lien service processing is all we do and we do it a lot. We have economies of scale that give us greater efficiencies and knowledge when researching your jobs. The information regarding the legal descriptions and owners of record, not to mention who is required to be served all MUST BE CORRECT should you ever need to file a mechanic’s lien. Second, because we do this exclusively we can produce a greater number of pre-liens for less money than you would pay an employee to perform these tasks accurately. And finally, we are not just a document production company. We take a proactive role in preserving and protecting your right to be paid. Our account representative will review your account at least monthly so you’re certain not to miss any lien rights expirations.

7. Q. When should a file a mechanic’s lien?
A. This answer can be different for everybody. Many States have different statutory timelines that must be followed EXACTLY as the statute reads. However, some companies feel that if they have not received payment in full after 90 days, it is then appropriate to lien. We will work with you to craft a sound policy for pre-lien service and lien filing.

8. Q. When should I get my attorney involved?
A. You should consult with your attorney WHENEVER YOU FEEL THAT LEGAL ADVICE IS NECESSARY. Lien Specialists Services, Inc. does not provide any legal advice so your attorney is important. If you do not have a relationship with an attorney we will happily provide you with at least one referral. We strongly recommend you involve an attorney after your mechanic’s lien has been filed if payment still fails to be received.

9. What are the lien laws in my state?
A. Please contact our office @ 651.379.0634