Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM Any person who contracts or agrees to erect, improve, add to, or repair a building at the direction of the owner or the owner’s authorized agent. Includes subcontractors, but not sub-subcontractors. Does not include real estate agents, unless they take actions which would otherwise qualify as a contractor. DC CODE § 40–301.01 DEADLINE TO PERFECT Notice of intent may be filed at any time during construction and must be filed within 90 days from the completion or termination of the work. Per DC CODE § 40- 303.03, subcontractors must also serve the owner. DC CODE § 40-301.02 BROKEN PRIORITY Lien relates back to the commencement of work on the building. Exceptions to relation – back priority: • Mortgage or deed of trust given to purchase the property IF that mortgage or deed of trust is recorded within 10 days of execution and acknowledgment. • Advances made under a construction mortgage or deed of trust before recording of Notice of intent described in DC CODE § 40-301.02. DC CODE § 40-303.07 DURATION OF LIEN Lien will be terminated if no action to enforce the lien is commenced within 180 days from the filing of the notice of intent described in DC CODE § 40-301.02. A notice of pendency must be recorded in the land records within 10 days of commencing suit. DC CODE § 40-303.13 CONTENTS OF LIEN (1) Name/address of contractor; (2) name/address of owner/owner’s agent; (3) name of party lien is claimed against (4) amount claimed; (5) description of work done; (6) dates work was commenced and completed; (7) description of material furnished; (8) dates material was first and last delivered; (9) legal description and, if available, a street address of the property; (10) copy of the contractor’s current license and a certificate of good standing issued within 180 days prior to filing of notice of intent; (11) if available, copy of home improvement contract; and (12) sworn, notarized statement Strict compliance is likely required. Chamberlin Metal Weather Strip Co. v. Karrick, 53 F.2d 928, 929 (D.C. Cir. 1931) DC CODE § 40-301.02 DISTRICT OF COLUMBIA DISTRICT OF COLUMBIA – 511 – 1. This chart is to be used strictly as a guideline to facilitate mechanic’s lien inquiries. Parties using this resource should ensure they are independently confirming the information contained herein before relying on the same. NATIONAL COMMERCIAL SERVICES BY STATE MECHANIC’S LIEN

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