Wednesday, December 4, 2013

Alabama's Mechanical Lien

In Alabama, liens filed on private property or on funds relating to a public project are known as Mechanic's Liens. When an Alabama mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property. Alabama mechanics' liens do not attach to publicly owned property.  If title to the land is held by the state or a political subdivision thereof, no Alabama mechanics' lien right is afforded.  Projects performed by industrial development boards, however, are not considered publicly owned property, and therefore an Alabama mechanics' lien can be filed on industrial development board property.
Contractors, as well as subcontractors, design professionals, sub-subcontractors and material suppliers can file an Alabama mechanics lien.  If a company supplies material to a material supplier, they are not eligible to file an Alabama mechanics lien claim.

Pre-notices are not required for contractors, but to maximize the enforceability of their liens, at the commencement of work on the property, subcontractors should provide written notice to the owner or the person having charge of the property that they are performing work on the property.  This preliminary notice should also be provided to the construction lender, if its identity can be reasonably determined.  Material suppliers without a direct contract with the owner must file service of written notice of intent to claim an Alabama mechanics lien on the owner and construction lender before the supplied material is used in connection with the project.
For subcontractors and sub-subcontractors, a written notice of intent to file an Alabama mechanics lien must be served on the Owner and construction lender within four months of the last date the lienor provided materials or services to the Project. Subcontractors, sub-subcontractors and suppliers without a direct contract with the owner must then file a verified statement of lien within four months after the last date the lienor provided materials or services to the Project. Contractors need to file a verified statement of lien within six months after the last date the lienor provided materials or services to the Project. Laborers must file a verified statement of lien within 30 days after the last item of work has been furnished.

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