Friday, January 31, 2014

Tennessee Mechanics Lien Requirements

In Tennessee, liens filed on private property or on funds relating to a public project are known as Mechanic's Liens. When a Tennessee mechanics lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property. When a Tennessee mechanics lien is filed with regard to work performed on a publicly or government owned property, it attaches to the fund of money which the public agency has allocated for a project. The reason for this is that you cannot force the sale of publicly owned land (public agencies mean any county, city, town, township, public commission, public board or other municipality authorized by law to make contracts for the making of any public improvement in any city, town, township or other municipality).
All persons providing labor or materials for the construction, repair, or improvement or removal of any permanent building or structure next to real estate is entitled to a Tennessee mechanics' lien . In Tennessee, architects and engineers are entitled to mechanics' lien rights.
In Tennessee, a contractor in direct contractual privity with the owner has no pre-lien notice requirements. However, subcontractors have various pre-lien notice requirements. Subcontractor pre-lien notice requirements are as follows: a notice of intent to file a lien must be filed within 90 days of the completion of the improvement or 90 days after completion of the contract in order to preserve ones lien rights. In addition, except for residential property, a notice of nonpayment must be provided to the owner and general contractor within 90 days of the last day of the month within which the subcontractor's labor and materials were provided. Failure to provide this notice of nonpayment will extinguish any potential Tennessee Mechanics Lien rights. Subcontractors are required to give a separate pre-lien notice for each month within which unpaid services or supplies were provided.              

Those with direct contractual privity with the owner have 1 year from their last date of work file a Tennessee mechanics lien; subcontractors have 90 days from their last date of work to file a Tennessee mechanics lien.

To view more information about Tennessee Mechanic Lien requirements, please visit: LienItNow

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