Why mechanic's liens work by Leonard J. Catanzaro, Esq.
Mechanic's liens work because they attach to the property where you did the work. The mechanic's lien allows you to force the sale of the property and get paid from the proceeds of the sale. This is called a lien foreclosure action and a lis pendens is filed against the property.
Mechanic's lien are inexpensive. My law firm charges $385 to file a mechanic's lien in the City of New York, and $445 in Nassau County due to the $90 filing fee. Just go to my website QuickLien.com and click on the type of job you want to lien, "commercial" "residential" "city" or "state". File out the simple lien questionnaire and hit "submit". You will receive the finished lien ready for your review, signature, and notarization. The owner and general contractor, if applicable, are served with the mechanic's lien. You will receive a copy of the lien stamped by the court. The lien is valid for 1 year from the date of filing and can be renewed for an additional year if a commercial property. If a 1 family house, condo, or co-op the lien can be extended by court order. The lien can be extended by court order. I suggest commencing a lien foreclosure action and filing a lis pendens which keeps the lien in effect for 3 years from the date of filing of the lis pendens. A lis pendens is also called a Notice of Pendency.
When you start a lien foreclosure lawsuit, the lawsuit will contain various causes of action in addition to foreclosing the lien. You must prove that the lien is valid in court, and that the owner owes you, or the general contractor for the work you did.
What does bonding the lien mean? Your mechanic's lien is filed with the county clerk where you did the work. Bonding means the owner, or the general contractor, goes to a bonding company and either pays a premium or puts up collateral in an amount 110% the lien amount. The bond is then filed with the county clerk and literally replaces the lien. The lien is no longer on the property as it is discharged by the bond. However, you are still protected because in the event you obtain a judgment of foreclosure in court instead of selling the property, the bonding company pays you.