Frequently Asked Questions for D.C. Mechanic’s Liens
+ Who Can File a Mechanic's Lien?
In D.C, Mechanic's lien rights are restricted to the general contractor and its subcontractors. No sub-subcontractors have lien rights and other contractors and suppliers also have no lien righrts unless they deal directly with the owner or the general contractor.
+What are Unique Features of DC's Mechanic's Lien Laws?
Oddly enough, there is very little case law on the DC Mechanic's Lien statute, so the answers to most questions have to come from the statute itself.
D.C. Mechanic's Liens are generally protective of, and favorable to contractors. For example, D.C. has a fiarly generous notice period for which a lien can be filed; 90 days from the last day of the project, not the specific claimants work. Essentially, in D.C. whether you finish the project in one day or 20, the deadline runs from when the project is done.
Owner's in D.C do have a Defense of Payment, which means that all subcontractor liens will fail if the owner of the property has paid the general contractor.
+ What are the important deadlines I have to Know in Order to File a Mechanics Lien?
All contractors must file a Notice of Mechanic's Lien in land records within 90 days after the earlier of the completion or termination of the project.
Enforcement of the lien must be done within 180 days after the Notice of Mechancic's Lien was filed in the land records. Further, you must file a notice in the land records that a lawsuit is pending within 10 days of filing the lawsuit.
+ What Determines if my Lien has Priority in D.C?
Generally, a D.C. Mechanic's lien has priority over all liens and mortgages that attach to the property after work was commenced.
A D.C. Mechancic's lien also takes priority over construction loan advances made after the the lien was filed. This holds true even if the construction lender recorded its loan after a claimant started working on the property.
A D.C. Mechanic's lien does not have prioirty over a mortgage on the property used to pay the purchase price.
One additional thing to keep in mind is that Subcontractor liens have priority over a General Contractor's, and if a Subcontractor gave notice to the owner before the owner paid the general contractor, that Subcontractor has priority to the extent of any payments received in satisfaction of the lien.
+ Do I have to Give Notice and if so What Type of Notice is Required?
Any claimant must serve a copy of the Notice of Mechanic's Lien to the owner via certified mail to the current or last known adddress within five business days after recordation in the land records.
If the return comes back unclaimed or undelivered, the claimant must post a copy of the Notice in a location generally visible from some entry point to the real property.
Further, once a lawsuit to enforce is filed, as indicated above, a notice of the lawsuit must be recorded within 10 days of the lawsuits filing.