5 Common Mechanics' Lien Mistakes
If you don't routinely file mechanics' liens, abiding by the statutory requirements of the mechanics' lien statute can be a daunting task. Further, the online lien services often do not help the lien claimant avoid these common perils:
1) Serve and file on time. South Carolina law dictates that a mechanics' lien must be served on the property owner and filed within 90 days of the lien claimant's last date of work — and the lien must be served before it is filed. S.C. Code Ann. § 29-5-90.
2) Put your license number on the lien. To file a mechanics' lien, a contractor must provide the county clerk of court or register of deeds proof that he is licensed or registered, if he is required by law to be. As proof, the contractor must record his license or registration number on the lien document when it is filed. S.C. Code Ann. § 29-5-15(A).
3) Foreclose on time. South Carolina law requires that the lien claimant "perfect" its lien claim by filing suit to foreclose on its lien within 6 months of the last date of work. S.C. Code Ann. § 29-5-120(A).
4) File a lis pendens on time. Not more than 20 days before you file suit to foreclose, and no later than 6 months from the last date of work, a Notice of Pendency of the action (a "lis pendens") must be filed. S.C. Code Ann. §§ 29-5-120(A), 15-11-10.
5) Avoid technical mistakes. Since mechanics' liens are statutory in nature, they are generally "strictly construed" — the lien claimant is required to follow the letter of the law. Even small mistakes can result in your lien being denied if you are not careful.
Don't be a cautionary tale — if you are thinking about filing a lien, let us help you avoid these pitfalls!