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1. Who May Have A Lien?

Private:

Furnisher of labor or materials; provider of services as a surveyor, architect, engineer, real estate licensee; licensed foresters; suppliers of repair parts for machines used; or lessors or suppliers of equipment, at least to the owner or general. Apparently labor or materials supplied to at least a first-tier subcontractor will be covered. On a residential project, or a project where the owner resides on the premises, if the claimant contracts with someone other than the owner, the lien is limited to the amount owed to the general at the time the notice is given. [10 §3255(3), 10 §3251; Schor at §20.03[A]]

NOTE: Owner may prevent lien by sub or materialman by giving written notice to them that he will not be responsible for payment.   [10 §3252]

Public:

Furnisher of labor, materials or rental equipment to contractor or first-tier subcontractor. [14 §871(4)]


2. What Is The Lien Against?

Private:

Structure and land. [10 §3251]

Public:

Contractor’s payment bond or irrevocable letter of credit. [14 §871(3)] NOTE: For contracts entered into with city, town, county or school district or other municipal corporation, claimant may also have lien against property itself by following same steps as for private work. [10 §3251]


3. Who Must Give The Preliminary Notice?

Private:

1) On all projects notice should be given to the Registry of Deeds in order to preserve the claimant’s lien against a bona fide purchaser for value. This notice is not required, but the claimant’s claim will not otherwise be protected as against such a purchaser.

2) On a residential project, or a business, commercial or industrial project where the owner resides on the premises, furnishers of labor or materials who do not have a contract with the owner must give a preliminary notice to the owner. [10 §3253, 10 §3255(3)]

Public:

A preliminary notice is not required.


4. To Whom Is The Preliminary Notice Given?

Private:

TO PROTECT ONE’S CLAIM AS TO A BONA FIDE PURCHASER:

To the Registry of Deeds.

ON A RESIDENTIAL PROJECT OR WHERE THE OWNER RESIDES ON THE PREMISES:

To the owner. [10 §3255]

Public:

Not applicable.


5. When Must Preliminary Notice Be Given?

Private:

TO PROTECT ONE’S CLAIM AS TO A BONA FIDE PURCHASER:

As soon as possible, for the claimant’s protection. The notice must be refiled every 120 days to remain effective.

ON A RESIDENTIAL PROJECT OR WHERE THE OWNER RESIDES ON THE PREMISES:

As soon as possible, because the lien amount is limited to the amount the owner owes to the contractor at the time this notice is received, or the lien is filed, whichever is EARLIER. [10 §3255]

Public:

Not applicable.


6. Contents of Preliminary Notice.

Private:

TO PROTECT ONE’S CLAIM AGAINST A BONA FIDE PURCHASER:

-Description of property sufficient for identification

-Names of owners

-That person giving notice is going to furnish labor, material or services, is currently doing so, or already has furnished labor or materials

-That person giving notice may claim a lien.

ON A RESIDENTIAL PROJECT OR WHERE THE OWNER RESIDES ON THE PREMISES:

-The notice is to be given by the person supplying labor or materials, though there is no requirement of a signature

-Description of property sufficient for identification

-Names of owners

-That person giving notice is going to furnish labor or material, is currently doing so, or already has furnished labor or materials

-That person giving notice may claim a lien.

-Please contact Levy von Beck & Associates regarding a warning that must be included. [10 §3255(2) and (3)]

Public:

Not applicable.


7. How Must Preliminary Notice Be Given?

Private:

Filed with the Registry of Deeds.

Delivered to owner or his agent at place of residence, as appropriate. Ensuring actual receipt is recommended. [10 §3255]

Public:

Not applicable.


8. Who Must Give Interim Notice?

Private:

An interim notice is not required.

Public:

An interim notice is not required.


9. Who Must Give Final Notice?

Private:

Every claimant contracting with someone other than the owner. A contractor who contracts directly with the owner may just file suit. [10 §3253]

A real estate licensee must give an additional notice to a bona fide purchaser for value of the property. [10 §3255]

Public:

Every claimant who has a contract with the subcontractor but not with the general contractor. [14 §871]


10. To Whom Is Final Notice Given?

Private:

ALL CLAIMANTS CONTRACTING WITH SOMEONE OTHER THAN THE OWNER:

-Office of Registry of Deeds in county or registry district in which structure is located

-Owners. [10 §3253]

REAL ESTATE LICENSEES:

To the bona fide purchaser for value. [10 §3255]

Public:

To general contractor. [14 §871(4)]


11. When Is Final Notice Given?

Private:

ALL CLAIMANTS CONTRACTING WITH SOMEONE OTHER THAN THE OWNER:

To both Registry of Deeds and Owner: Filed and mailed within 90 days after last furnishing labor or material by claimant. Proof of mailing is proof of receipt by the owner. [10 §3253]

REAL ESTATE LICENSEES:

The notice to the purchaser must be received before the purchaser takes title. It is only valid for 120 days after recording. [10 §3255]

Public:

Notice must be received within 90 days of last furnishing labor or materials. [14 §871(4)]


12. How Is Final Notice Given?

Private:

ALL CLAIMANTS CONTRACTING WITH SOMEONE OTHER THAN THE OWNER:

-Office of Registry of Deeds: Filed.

-Owners: By ordinary mail, but the sender must also obtain a post office certificate of mailing which will be conclusive proof of receipt by the owner. [10 §3253]

REAL ESTATE LICENSEES:

By certified mail, return receipt requested, or by providing ‘actual notice’. [10 §3255]

Public:

Registered or certified mail to contractor at residence or any office. Strongly recommend ensuring actual receipt, or sending by regular mail as well. [14 §871(4)]


13. Contents of Final Notice

Private:

ALL NOTICES:

– True statement of amount due, less credits. (Note that on a residential project or a project where the owner resides on the premises, the lien amount is limited to the amount the owner owes to the contractor at the time the preliminary notice was given, or the lien is filed, whichever is EARLIER. [10 §3255])

-Description of property sufficient for identification

-Names of owners, if known

-Claim must be subscribed and sworn to by lien claimant or someone on claimant’s behalf. The notice must include the jurat or certificate of the officer administering the oath. The claimant’s attorney can sign the lien, and should do so on knowledge, information and belief. [10 §3253; HCI Corp. v. Voikos Const. Co., 581 A.2d 795 (Maine 1990); 10 §3255]

Public:

-Amount claimed

-Name of party to whom labor or material was furnished. [14 §871(4)]


14. Time to Start Suit / Foreclose?

Private:

Within 120 days after last furnishing labor or material. [10 §3255(1)]

NOTE that when one files a complaint, in order to retain one’s lien as against the title of a bona fide purchaser for value, the claimant must either: (1) Submit a written request from the plaintiff’s attorney, requesting the court clerk to file with the registry of deeds a certificate setting forth the names of the parties, the date of the complaint and of the filing of the complaint, and a description of the real estate as described in the complaint; or (2) Within 60 days after filing the complaint, the claimant must cause to be recorded with the registry of deeds either (a) the certificate just described in subsection (1), (b) an affidavit of the claimant or the claimant’s attorney, setting out the name of the court in which the complaint was filed, the names of the parties, the date of the complaint and of the filing of the complaint, a description of the real estate as described in the complaint, and the name, address and telephone number of the claimant or the claimant’s attorney; or (c) an attested copy of the complaint. If the claimant fails to do so, the lien is not invalidated, but if a bona fide purchaser for value takes title to the premises before one of these documents has been filed, then the purchaser takes the property free of the lien. [10 §3261]

NOTE that if the labor, materials or services were not furnished under a contract with the property owner, then the claimant may not serve the complaint and summons on the owner until 30 days after the suit has been filed. [10 §3255]

An attachment action may also be commenced, within 180 days after last delivery. [10 §3262]

NOTE that if the property owner dies or is declared bankrupt, the time to start a suit is postponed. [10 §3256]

Public:

More than 90 days but less than 1 year after last furnishing labor or material. Material supplier who does not have final quantity estimates may start suit within 1 year from determining final quantity estimates. [14 §871(4)]