Many individuals entering into agreements for the provision of services or goods may be familiar with the concept of mechanic’s liens. While the term is commonly heard, only a few understand how to effectively use this legal tool to secure payment when it is withheld for services and goods rendered.
A common misconception is whether one needs to be a mechanic or involved in automotive work to employ a mechanic’s lien. The answer is no. Mechanic’s liens are established by statutes, allowing anyone who has provided labor, goods, or materials for the improvement of real property or structures on that property to seek payment for their services. This is accomplished by filing a lien in the appropriate registry of deeds.
Another frequent question revolves around the necessity of a written contract with a property owner when providing services or goods to enforce a mechanic’s lien. Not necessarily. In Massachusetts, mechanic’s liens are governed by statute G.L.c. 254. Section 1 of G.L.c. 254 allows a mechanic’s lien to be applied to “personal labor performed in the erection, alteration, repair, or removal of a building or structure upon land or improvement or alteration to real property” based on an agreement with the property owner. A Section 1 mechanic’s lien is applicable to 30 days of work within the 90 days preceding the filing of a statement of account.
If there is a written contract with a property owner, Section 2 of G.L.c. 254 comes into play. This section specifies that a person who performs work or provides materials under a written contract with the landowner can obtain a lien if payment is not received. In such cases, the laborer must file a notice of contract with the appropriate registry of deeds within 90 days of the last labor performed or goods supplied, following additional necessary steps for the lien to be enforceable.
While encountering difficulties in receiving payment for services or goods is undesirable, it is a situation that many providers may face. The mechanic’s lien statute may seem complex, but it can often be the most effective option for securing payment from a challenging property owner. Let the attorneys at PK Boston Law help you today!