Maryland Mechanic’s Liens Attorney
Mechanic’s liens (otherwise known as “construction liens”) can be filed by general contractors, subcontractors, material suppliers, and any other parties who have been involved in a construction or development project and have not been paid by the owner. This can be an effective enforcement mechanism to compel the property owner to resolve their unpaid debts when there is a payment dispute.
Mechanic’s liens are complicated legal actions, and they must be done in accordance with all state laws. Otherwise, an unpaid party may lose their right to collect their debt from the property owner. If you are a contractor, subcontractor, project owner, or any other party that is involved in a construction project, and you need to file, enforce, or defend against a construction lien, you need an experienced attorney in your corner to advocate forcefully for your legal rights and interests.
At the Evans Law, we have several decades of combined experience in real estate and construction law. Our practice is focused almost exclusively on these two areas of the law, and we have in-depth knowledge of the complexities involved with these practice areas, and how the governing statutes are applied on a daily basis throughout the Maryland courts.
We represent general contractors, subcontractors, suppliers, manufacturers, and all other parties that work in or are associated with the construction industry. We also represent individual property owners. When there is a dispute over payment for materials and labor on a construction project, we work closely with our clients, exploring every potential legal avenue to most effectively resolve the dispute.
If it becomes necessary to file a mechanic’s lien, we provide skilled legal guidance throughout the process to help ensure a favorable outcome for our clients. When a construction lien has been improperly filed on a property owner (such as when a contractor is trying to collect money for work that was not completed), we work hand in hand with the owner to aggressively challenge the lien.
Maryland Mechanic’s Lien Laws
Mechanic’s lien laws are designed to protect professionals and businesses that provide labor, materials, or services for construction or improvement of real property. In Maryland, these laws are considered fairly broad and inclusive, offering protections not only to general contractors but also to subcontractors, suppliers, and certain professionals such as architects, engineers, and certified interior designers.
If you are working on a construction or renovation project in Maryland, understanding the state’s mechanic’s lien laws is critical to safeguarding your right to payment. Below, we will walk you through who can file a lien, the eligibility requirements, critical deadlines, notice requirements, and the legal nuances specific to Maryland.
Who Can File a Mechanic’s Lien in Maryland?
One of the most important aspects of Maryland’s lien law is that it casts a wide net in terms of who can file. This means that not just the general contractor who signs a contract with the property owner is protected, but also other parties further down the construction chain. Eligible parties include:
- General contractors
- Subcontractors
- Material suppliers
- Engineers
- Licensed architects and surveyors
- Certified interior designers
To qualify, the work or materials provided must have contributed to the improvement of real property. Maryland law allows for liens to be placed on both residential and commercial properties, although there are some additional restrictions for single-family, owner-occupied residences, which we’ll discuss later.
Types of Projects That Qualify
Mechanic’s liens in Maryland can be filed not only for new construction but also for repair, remodeling, or renovation work—as long as the improvement adds at least 15% to the property’s value. This is a unique requirement in Maryland that does not exist in many other states, and it’s important to note.
For example, if a contractor performs a kitchen remodel worth $30,000 on a home valued at $300,000, that would only be a 10% improvement and may not qualify for a lien. However, a larger renovation that improves the value of the property by 15% or more—such as an addition or major remodel—would likely meet this threshold.
Filing Location and Deadlines
To establish a valid lien in Maryland, the claimant must file a petition in the circuit court of the county where the property is located. This is a formal legal filing and should include specific details such as:
- A description of the work or materials provided
- The amount claimed
- A description of the property
- The name of the property owner
180-Day Filing Deadline
Maryland law is strict about timing. The petition must be filed within 180 days from the date when labor or materials were last furnished to the project. Missing this deadline could result in the loss of lien rights altogether, so it’s crucial to track your project dates carefully.
Notice Requirements: Who Must Notify the Owner?
One of the differences in Maryland’s mechanic’s lien process is the notice requirement, which varies based on the party’s position in the contractual chain.
General Contractors
General contractors—those who have a direct contractual relationship with the property owner—are not required to give any preliminary notice before filing a lien. They can go straight to court if needed.
Subcontractors and Others Without Direct Contract
If you are a subcontractor, supplier, or any other party that does not have a direct contract with the property owner, you are required to serve a preliminary notice. This must be done within 120 days from the date labor or materials were last provided.
The notice must clearly inform the property owner of your involvement in the project and your right to file a lien if payment is not made. This gives the owner a chance to withhold funds from the general contractor to ensure payment flows down to all parties.
Single-Family Residential Projects
For projects involving owner-occupied single-family homes, the notice rules are even more stringent. The preliminary notice must be provided before the owner has paid the general contractor in full. If the owner has already paid the general contractor, you may lose your lien rights entirely, even if the 120-day notice window hasn’t closed yet.
This provision is meant to protect homeowners from being forced to pay twice for the same work—once to the contractor and again to unpaid subcontractors or suppliers.
Entity Registration Requirement
If the lien claimant is a corporation, LLC, or other business entity, Maryland law requires that the entity be properly registered with the state. This means you must be in good standing with the Maryland Department of Assessments and Taxation (SDAT) at the time the lien is filed.
Failing to meet this requirement can result in the lien being invalid, regardless of whether you meet all other qualifications.
Enforcement of a Mechanic’s Lien
Filing a construction lien is just the first step in collecting an unpaid debt for materials and/or labor from a construction or development project. A petition to enforce the lien must also be filed, and the deadline for filing an enforcement petition is one year from the date that the initial mechanic’s lien was filed. If this deadline is missed, the claimant may lose the ability to enforce the lien, even if the lien is established by the court. To help prevent this from happening, a petition to establish the lien and a petition to enforce the lien are often combined into one court filing.
What Are Some Best Practices for Protecting Your Rights?
To ensure you don’t lose your right to file a mechanic’s lien in Maryland, follow these best practices:
- Keep detailed records of all contracts, invoices, delivery receipts, and dates of work.
- Understand your deadlines—120 days for notice and 180 days for filing the lien.
- Know the value threshold—make sure your work qualifies as a 15% improvement to the property.
- Register your business with the state and keep it in good standing.
- Communicate with the property owner early and often, especially on residential jobs.
- Consult with a legal professional before filing to ensure compliance with all statutory requirements.
Mechanic’s lien laws in Maryland offer substantial protection for contractors, subcontractors, and others involved in construction projects, but they come with very specific rules and deadlines. Whether you’re building a new home, remodeling a kitchen, or supplying materials to a commercial development, understanding your rights and responsibilities under these laws is essential.
If you’re unsure about any aspect of the lien process—or if you’re facing a payment dispute—it’s always a good idea to consult a qualified attorney familiar with Maryland construction law. Being proactive about lien rights can mean the difference between getting paid and walking away empty-handed.
What Can be Collected Through a Mechanic’s Lien?
Damages that may be collected through a construction lien may include payment for:
- Material and equipment supplied to the project that is unpaid;
- Unpaid labor;
- Interest on the amount owed (if provided for in the construction contract).
The total amount that can be sought through a mechanic’s lien cannot exceed the cap that is specified in the contract. In general, collection costs, attorney fees, and other costs cannot be included in the lien. However, a court may award attorney fees to a claimant in a successful action.
It is important to note that a construction lien is a claim against the property for which there is unpaid labor or materials, rather than against the property owner. This is different from a judgment against a specific person in that it does not allow the claimant to go after the owner’s bank accounts, wages, or any other personal property to collect the debt. The lien is against a specific property, and the property owner will be forced to satisfy the lien when they try to sell or refinance it.
A party that brings a mechanic’s lien claim against a property may decide to bring a simultaneous breach of contract action against the owner if it makes sense to do so. If successful, this could produce a court judgment, with would allow the plaintiff to go after other personal property to satisfy the debt.
Speak with a Skilled Annapolis, MD Mechanic’s Lien Lawyer Today
Construction liens are complicated and have a lot of technical requirements that must be fulfilled in order to be done correctly. At Evans Law, we have extensive experience with mechanic’s liens and all other construction and real estate-related legal matters in Maryland, and we provide skilled and personalized guidance and representation for each client we serve. Contact our office today at (410) 626-6009 to schedule a consultation with one of our attorneys. You may also message us through our online contact form or stop by our Annapolis office in person at your convenience.