Understanding Tennessee’s Construction Lien Laws
Construction projects in Tennessee involve multiple parties, including general contractors, subcontractors, suppliers, and property owners. While in most cases construction projects proceed without issues, sometimes disputes arise over payment. When such issues arise in Tennessee, a crucial tool that can ensure payment is the mechanic’s lien, also called a construction lien. However, in the state, there are some requirements that must be met in order to secure your lien rights. In this article, we will discuss the basics of Tennessee’s construction lien laws. Read on!
What Is a Construction Lien?
Tennessee, like many other states, recognizes a mechanic’s lien, also known as a construction lien. A mechanic’s lien is a legal claim you can file against a property if you haven’t been paid for work or materials you’ve supplied for its improvements. Once you file a lien, you get a claim against the property and can initiate legal action to force the sale of the property to secure payment. In Tennessee, the laws governing these liens are codified in T.C.A. section 66-11-101 et seq.
Who Can File a Mechanic’s Lien?
Some people assume that mechanic’s liens are only for general contractors. This is not true. In Tennessee, lien laws protect several parties, including;
- General or prime contractors
- Subcontractors
- Suppliers
- Laborers
In Tennessee, you may still possess lien rights even if you do not have a direct contract with the property owner if you supplied materials or labor to the improvement of the property.
A Lien Overview for Different Parties
As mentioned at the beginning of this article, specific requirements must be met for a party to secure their lien rights. Here is a look at the requirements different parties have to meet;
- Prime or General Contractors
Often, property owners directly contract with general or prime contractors to manage the whole project. In Tennessee, general contractors must send a Notice to Owner before starting work on a project. This Notice must be sent via certified mail.
When it comes to enforcing a lien, a general contractor must file their lien within 12 months of the last furnishing of labor or materials. This deadline also applies if you want to initiate a lawsuit to enforce a lien.
However, if a prime contractor wants to enforce a lien against a third party, they must record it within 90 days of the last furnishing of materials or labor.
- Subcontractors
If you are a subcontractor, you are not required to provide a Notice to Owner before commencing work. However, you must send a Notice of Nonpayment, and you must do so within 90 days of the last day you provided materials or labor. You must send a different notice for each unpaid month. You are also required to file a Notice of Lien within 90 days of completing the work. Additionally, if you want to initiate a lawsuit to enforce the lien, you must file your lawsuit within 90 days from the lien’s filing date.
- Suppliers
If a supplier entered a direct contract with the owner, they are required to send a Notice to Owner. If you did not enter into a direct contract with the owner, you should follow the same rules as those that apply to subcontractors.
Laborers as individuals also have lien rights in Tennessee, and those rights actually have extra priority.
Contact Us for Legal Help
If you need help filing a lien, contact our skilled Knoxville construction law attorney at Reynolds, Atkins, Brezina & Stewart, PLLC. We can guide you through the process and protect your interests.
Source:
advance.lexis.com/documentpage/?pdmfid=1000516&crid=41783955-f3aa-461b-818d-55e71d734e09&nodeid=ACOAALAABAAB&nodepath=%2FROOT%2FACO%2FACOAAL%2FACOAALAAB%2FACOAALAABAAB&level=4&haschildren=&populated=false&title=66-11-101.+Chapter+definitions.&indicator=true&config=025054JABlOTJjNmIyNi0wYjI0LTRjZGEtYWE5ZC0zNGFhOWNhMjFlNDgKAFBvZENhdGFsb2cDFQ14bX2GfyBTaI9WcPX5&pddocfullpath=%2Fshared%2Fdocument%2Fstatutes-legislation%2Furn%3AcontentItem%3A4X8K-VX80-R03N-B3TB-00008-00&ecomp=6gf5kkk&prid=bdd41324-b393-4afa-af03-16acc692785d
