Alabama Liens Frequently Asked Questions

What is a Mechanics’ Lien Claim?

Liens filed on private property or on funds relating to a public project are known as Mechanic’s Liens. When a lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property. Mechanics’ liens do not attach to publicly owned property in Alabama.  If title to the land is held by the state or a political subdivision thereof, no mechanics’ lien right is afforded.  Projects performed by industrial development boards, however, are not considered publicly owned property, and therefore a mechanics’ lien can be filed on industrial development board property.

Who can file a Mechanics’ Lien Claim?

Contractors, as well as subcontractors, design professionals, sub-subcontractors and material suppliers can file a lien.  If a company supplies material to a material supplier, they are not eligible to file a lien claim.

Are pre-notices for a Mechanics’ Lien Claim required?

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 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 a lien on the owner and construction lender before the supplied material is used in connection with the project.

Can you file a Mechanics’ Lien Claim without a pre-notice?

Yes.

When should a Mechanics’ Lien Claim be filed?

For subcontractors and sub-subcontractors, a written notice of intent to file a 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.

How much does it cost to file a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves Alabama Mechanics’ Liens (which includes a written notice of intent to claim a lien, if necessary, as well as a verified statement of lien) for a fee of $250.00.  Pre-notices are not included in the $250.00 price, but can be filed for a fee of $50.00.

Do I need a written contract?

No.  Oral contracts are sufficient if you have sufficient documentation to show the existence of an agreement or that you performed the work for which you are liening.

How does filing a Mechanics’ Lien Claim help me get my money?

On a private project, the mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the lien.

What is a Stop Notice and why should it be filed?

LienItNow.com prepares and serves Alabama Stop Notices for a fee of $100.00.  A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien.  A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project.  Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim.  The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

What is an Amendment to a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves Alabama Amendments to Mechanics’ Lien Claims for a fee of $225.00.  Amendments to a mechanics’ lien claim are often needed when something about the lien claim changes.  Common changes to a lien claim are increases or reductions in the amount due to the lienor, or a change to the last date of work.

When should a Discharge of Mechanics’ Lien claim be filed?

LienItNow.com prepares, files and serves Alabama Discharges of Mechanics’ Lien Claims for a fee of $75.00.  Once the lienor has been paid the amount contained in its lien claim, or has come to an agreement that requires the lien claim to be removed from the property records, a Discharge of Mechanics’ Lien Claim should be filed.

How much does it cost to file an Extension of a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves extensions of Mechanics’ Lien Claims for a fee of $75.00.  All lien claims expire after a certain period of time, and filing an extension of the mechanics’ lien claim prolongs the expiration date.  Alabama law, however, does not permit an extension of mechanics’ lien claims.

Can I file a Bond Claim on the Project?

LienItNow.com prepares, files and serves Alabama Bond Claims for a fee of $250.00.  Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

Do I need to file a Pre-Notice to make a claim against a payment bond?

LienItNow.com prepares, files and serves Alabama Pre-Notices for bond claims for a fee of $50.00.  Depending on the terms of the payment bond, pre-notices may or may not be required.  LienItNow.com recommends that, prior to or immediately after starting work or delivering materials to a project, subcontractors and suppliers, file a pre-notice that it is a potential beneficiary of the construction project’s bond.