In Minnesota a contractor, subcontractor or material supplier to protect their legal rights under Minnesota law, can file a mechanic’s lien. The purpose behind filing a mechanic’s lien is to provide the contractor with an interest in the property in case the property owner does not pay for the services rendered. To file a lien, the contractor must adhere to certain requirements laid out by the Minnesota Mechanic’s Lien Statute, Minnesota Statutes section 514.01 et seq.
A contractor must provide specific lien notice to a homeowner prior to starting work on the property. The contractor then must file the lien with the county recorder or registrar of titles within 120 days from the last of work. Failure to do either of these can jeopardize the contractor’s lien rights and greatly weakens their ability to collect from a non-paying homeowner. A mechanic’s lien can be a powerful tool for contractors in order to ensure that they are not stuck with construction costs following the completion of a project.
Subcontractors or suppliers who do not have a direct contract with the homeowner are, for the most part, entitled to file a lien against a property that they work on, but do not receive payment for, but they have a different pre-lien notice requirement. Subcontractors or suppliers also need to file their claim for a mechanic’s lien within 120 days from their own last date of work on the property. Again, failure to file by the 120-day deadline will greatly impact your rights and leverage in collecting from the homeowner.
Getting a mechanic’s lien in place is just the start of collecting on non-payment from an owner. The mechanic’s lien can be used as leverage to negotiate payment; otherwise, the mechanic’s lien will need to be foreclosed on within 1-year from the last day of work on the property. This foreclosure action to enforce your lien rights will need to be filed in district court. Barragry Law LLC can help file a mechanic’s lien, negotiate payment from the homeowner, commence the foreclosure action in district court, or help collect from a judgment you received against a homeowner. Contact us today.