In the State of Diamonds, receiving the gold that you have earned is not always a simple process. There are rules in place in Delaware, just like there are in every other state, to assist construction workers and suppliers like you in getting paid.
The regulations governing mechanical liens and construction liens in Delaware are similarly unclear and difficult to understand, just like those in every other state. Therefore, to properly file a Delaware lien and safeguard your right to be paid, you need to have a solid understanding of how the law operates.
According to the NLB, the following are the top five things you need to know about the lien rules in Delaware:
Mechanic’s Liens: 5 Amazing Things That Everyone Should Know
Here are five things to keep in mind when dealing with a mechanic’s lien.
1. Mechanic’s Lien Rights Can Be Lost If Not Properly Perfected
Because mechanic’s liens are statutory creations, the majority of countries require rigorous compliance with the regulations that are essential to generate or “perfect” a lien.
When a lien must be finalized, as well as where and how this must be done, are significant questions and considerations that must be addressed.
Once a lien has been properly perfected, many states require the lienholder to file a claim in court to enforce the lien within an expedited time frame (typically a one-year deadline), or else a properly perfected lien might become null and void and lose its legal standing.
2. Mechanic’s Lien Disputes Can Be Substantively Quite Complicated for All Parties Concerned
Taking action to enforce a mechanic’s lien or defending against a mechanic’s lien can be rather involved, especially when a sizable amount is at risk in the dispute.
Who is entitled to the lien rights? Have all of the necessary steps been taken to perfect the lien? When filing a lien claim, what is the maximum amount of damage that can be collected?
3. Schedule a No-cost Initial Call With NLB’s General Counsel To Get Started
Since 1986, the expert lien providers and Delaware construction lawyers at National Lien & Bond have assisted Delaware subcontractors and suppliers in getting paid on more than 26,000 construction projects.
NLB is here to assist you in learning what procedures you need to follow and when you should send a notice of lien to secure the funds for your job on every project.
4. Notice of Right To Lien
Serving notice of your right to file a mechanic’s lien, also known as the “Preliminary Notice,” is typically the first step in the process of protecting your lien rights. This step is often referred to as the “Preliminary Notice.”
The property owner and the general contractor need to be served with it. Unless working directly for the general contractor is part of your job description. You are required to also provide notice to the construction lender if the property owner got a loan to fund the project.
5. Avoiding Liens
Homeowners who choose trustworthy contractors and pay them by the terms of their contracts can reduce the likelihood of ever having their property subject to a lien.
However, you can also try working with the contractor to obtain a lien waiver so that you both agree that the contractor will not file a lien in the future. You can do this by working together with the contractor.
It is in your best interest to go through with the entire process even if you have no intention of actually foreclosing on the lien. This could be because you want to give the owner additional time to pay or for some other reason. When it comes to the mechanic’s lien law in California, it may be too late to take action even if the conditions that led to the lien change.
Interesting Related Article: “The Top 5 Construction Accidents And How To Avoid Them“