New Mexico State Lien Law Summary

LIEN:

Laborers, suppliers of equ­ipment or materials to own­er, general, sub and sub-sub and specialty fabricator. Surveyors and architects may have liens. NOTE that a manufacturer supplying a supplier may have a lien claim if it can be established that the supplier is in fact a sub, even if they are performing their work off site. Otherwise, suppliers to suppliers do not have lien rights. NOTE also that if a license is required of the claimant by the Construction Industries Licensing Act, then the claimant must be licensed in order to claim a lien. NOTE ALSO that a licensed contractor cannot maintain an action to collect compensation for work performed by an unlicensed subcontractor. [48-2-2, 60-13-1 et seq.; Wilger Enterprises, Inc. v. Broadway Vista Partners, 137 N.M. 806, 115 P.3d 822 (2005); Vulcraft v. Midtown Bus. Park, Ltd., 800 P.2d 195 (1990); Reule Sun Corp. v. Valles, 147 N.M. 512, 226 P.3d 611 (N.M. 2009); Schor at §32.03[B]]

STOP NOTICE:

Stop notices are for residential projects only, and any claimant can give one. [48-2A-1, et seq.; Schor at §32.04]

Laborers, materials sup­pliers, etc. to general contractor or first- or, apparently, second-tier sub. Company furnishing laborers to general contractor may bring a claim against the payment bond. Suppliers to suppliers MAY be protected. NOTE that all contractors and subcontractors who submit a bid for $60,000 or more on a public works project must be registered with the labor and industrial division of the state labor department. [13-4-18; Eastland Financial Services v. Mendoza, 43 P.3d 375 (N.M. 2002); Hasse Contracting Co., Inc. v. KBK Financial, Inc., 1997, 125 N.M. 17, 956 P.2d 816, certiorari granted 124 N.M. 589, 953 P.2d 1087, affirmed but criticized 127 N.M. 316, 980 P.2d 641; State ex rel. W.M. Carroll & Co. v. K.L. House Const. Co., Inc., , 656 P.2d 236 (N.M. 1982); .13-4-13.1]

LIEN:

Improvement and the lot or tract it is on, plus a con­venient space surrounding it. [48-2-4]

RESIDENTIAL STOP NOTICE:

Funds held by the owner or construction lender. [48-2A-8, Schor at §32.04]

Payment bond. [13-4-18C] NOTE that subcontractors whose contract is for $125,000 or more must provide a performance and payment bond. [13-11148.2] NOTE also that there is also a provision for laborers who are paid less than the Public Works Minimum Wage to be paid out of the unpaid contract funds, though there is no specific procedure for the laborers to follow; apparently they need to complain to the labor and industrial division of the labor department. [13-4-14]

LIEN:

All claimants who:

-Do not contract with the owner or general contractor; AND

-Whose claim is more than $5,000; AND

-Where the project is NOT residential property con­taining 4 or fewer dwelling units. [48-2-2.1]

RESIDENTIAL STOP NOTICE:

All claimants. [48-2A-6, Schor at §32.04]

A preliminary notice is not required.

LIEN:

Owner or original contrac­tor or both. (Recommend giving it to both.) [48-2-2.1; Schor at §32.03[C]]

RESIDENTIAL STOP NOTICE:

Construction lender, if any, and owner. [48-2A-6; Schor at §32.04] Enter Text Here.

Not applicable.

LIEN:

Notice must be received within 60 days of first delivery or performance. If given later, relates back 30 days. [48-2-2.1]

RESIDENTIAL STOP NOTICE:

Notice must be received within 20 days after first furnishing labor or materials. If received later, relates back 20 days. [48-2A-5, 48-2A-6]

Not applicable.

LIEN:

-Notice of right to claim a lien in the event of non­payment

-Legal description, or de­scription of property suf­ficiently specific to actu­ally identify property

-Name, address and phone number of claimant

-Name, address and phone number of person with whom claimant contracted. This notice is not required to be verified, and there is no requirement as to who can sign it. [48-2-2.1]

RESIDENTIAL STOP NOTICE:

No specific requirements; recommend a description of the property; description of the labor or materials furnished; the name, address and phone number of the claimant and the person with   whom claimant contracted; name and address of the owner; and a notice that a stop notice will be given if claimant is not paid. This notice is not required to be verified, and there is no requirement as to who can sign it [48-2A-6, Schor at §32.04]

Not applicable.

LIEN:

Certified mail, return re­ceipt requested, fax with acknowledgment, or person­al delivery. [48-2-2.1]

RESIDENTIAL STOP NOTICE:

Hand delivered or mailed by certified mail, return receipt requested. [48-2A-6]

Not applicable.

An interim notice is not required.

An interim notice is not required.

LIEN:

All claimants. [48-2-2.1]

RESIDENTIAL STOP NOTICE:

All claimants. [48-2A-5]

All claimants who do not have contracts with the gen­eral contractor. [13-4-19]

LIEN:

County clerk where proper­ty is located. [48-2-6]

RESIDENTIAL STOP NOTICE:

Construction lender, if any, and owner. [48-2A-5]

General contractor. [13-4-19]

It is also strongly advised to send a copy to the public body in charge of the project. [Schor at §32.02[D]]

LIEN:

General contractor:

Filed within 120 days after com­ple­tion of contract. NOTE, HOWEVER, that if claimant has given a stop notice, they may not file a lien for the same funds while the stop notice is being litigated. [48-2A-9]

All other claimants:

Filed with­in 90 days after completion of the improvement. [48-2-6]

NOTE that where a supplier supplies on an open account, and the project is suspended or abandoned, then the claimant needs to file the claim within 90 days after the last delivery. [Schor at §32.03[F]]

RESIDENTIAL STOP NOTICE:

Notice must be received no less than 20 days and no more than 30 days from the date the claimant presented its request for payment to the original contractor. [48-2A-5]

Received within 90 days after claimant last provides the labor or materials for which the claim is made. [13-4-19]

LIEN:

Filed with county clerk. [48-2-6]

RESIDENTIAL STOP NOTICE:

Hand delivered to the real estate lending department if the lender is a financial institution; otherwise to the manager or other responsible person at the lender’s offices. No specific provision as to how to deliver the notice to the owner. Certified mail return receipt requested or hand delivery is strongly recommended. [48-2A-6]

Registered mail or personal service. Consequences of refusal to accept delivery are not clear, thus strongly recommend ensuring actual delivery. [13-4-19] Note that where the notice is timely sent by certified mail and actually received by the contractor, the court has allowed certified mail rather than registered. (Recommend sending by registered mail nonetheless, however.) [State ex rel. Solsbury Hill, LLC v. Liberty Mut. Ins. Co., 273 P.3d 1 (N.M.App.2011)]

LIEN:

-Statement of demand less offsets

-Name of owner or reputed owner, if known

-Name of person by whom claimant was employed or to whom materials were fur­nished

-Statement of terms, time given and conditions of the contract

-Description of property sufficient for identifica­tion

-Claim must be verified by the claimant or some other person. There is case law allowing the claimant’s attorney to sign the lien, where the attorney’s verification stated that he had investigated facts set forth in claim of lien and that they were true and correct to the best of his knowledge. Marsh v. Coleman, 93 N.M. 325, 600 P.2d 271 (1979).

-Recommend attaching copies of invoices or contract to lien. [Schor at §32.03[F]]

Where claim is against two or more buildings or im­provements owned by same person, claimant must des­ignate amount due on each. Failure to do so leads to loss of priority as against other lien claimants. [48-2-6, 48-2-8]

RESIDENTIAL STOP NOTICE:

-Name of the claimant

-Amount claimed

-Name of person to who labor or material was fur­nished.

Neither the statute nor case law addresses the question of who must sign the notice. The notice need not be verified. [13-4-19]

LIEN:

Within two years after date of filing lien. A contingent payment clause in a contract is not to be construed as a waiver of the right to file and enforce a lien. [48-2-10]

RESIDENTIAL STOP NOTICE:

No less than 30 or more than 60 days after delivery of the stop notice. [48-2A-9]

-More than 90 days after claimant last furnishes work or materials, but less than 1 year after final settlement of the contract. There is case law, however, that allows the claimant to file suit prior to having made the final delivery. [13-4-19C; Schor at §32.02[E]; Goodmans Office Furnishings, Inc. v. Page & Wirtz Constr. Co., 102 N.M. 22, 690 P.2d 1016 (1984)]

-Claimant must notify the obligee named in the bond (that is, the state or other governmental contracting authority) of the beginning of the suit, stating the amount claimed. [13-4-19B; Schor update at §32.02[D]]