+ Who Can File a Mechanic's Lien?

In Maryland, any party who frunishes labor or materials to a construction project, provided it satsifes Maryland's Mechanic's Lien

+What are Unique Features of Maryland's Mechanic's Lien Laws?

Maryland is a little bit different than other states. In Maryland, a contractor does not have a lien until the court says it has a lien. A Maryland contractor must file a Petition to Establish a Lien and then go to a Show Cause hearing so that the court can establish an “Interlocutory Lien.” A contractor has no lien until this happens. Compare this to Virginia or other states with an “inchoate lien,” where a contractor has a lien from the moment the contractor begins supplying labor and materials to the property, even though the lien is not filed until months later.

In Maryland, a “bona fide” purchaser buys property free of the lien. If a contractor supplies labor and materials, but the property is sold before the contractor can establish a lien in court, then that buyer and the property are not affected by the lien. This is most often a problem with residential properties, which sometimes are pre-sold even before construction begins.

Contractors working on residential properties in Maryland, therefore, will have a difficult time ever establishing lien rights. Once a property is sold, or even “under contract,” all lien rights are cut off.

Sub-subcontractors and remote suppliers will have lien rights in Maryland, as long as they can prove that their materials were used on the property.

+ What are the important deadlines I have to Know in Order to File a Mechanics Lien?

Prefiling Before Construction: Maryland does not have a prefiling requirement.

Lien Filing and/or Service after Labor or Materials Supplied:

Subcontractors must serve notice on owner within 120 days of last work. This is different from, and should not be confused with, the Virginia statute. In Virginia, the lawsuit to enforce the lien must be filed within six months after the mechanic’s lien is filed in the land records. In Maryland, it does not matter when the Notice of Intent to Lien was sent; the Petition to Establish a Lien must be filed within 180 days of last work.

Enforcement: All contractors must enforce lien, by filing a lawsuit, within 180 days of last work.

+ What Determines if my Lien has Priority in Maryland?

As noted above, in Maryland, a Contractor does not have a lien until the court says it does. Consequently, this difference in timing means that a mechanic’s lien in Maryland has a much lower “priority” than in states with an inchoate lien. In Maryland, the mechanic’s lien will be inferior to the construction loan deed of trust, judgment lien or anything else that is recorded in the land records before the court establishes the lien.

+ Do I have to Give Notice and if so What Type of Notice is Required?

In order for a mechanic’s lien to be valid, the statute requires that a subcontractor do two things. First, the Notice of Intent to Lien must be served on the owner within 120 days of the claimant’s last work. It is sufficient if the notice is sent by certified mail within the deadline, although it may be received by the owner after the deadline. Second, the subcontractor must file its Petition to Establish a Lien within 180 days of the claimant’s last work.