Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM Anyone who, pursuant to a contract or consent of the owner (includes a mortgagee) performs labor or furnishes labor or materials, including repair parts of machines, used in erecting, altering, moving or repairing a building, including the surveying, clearing, grading, draining, excavating or landscaping of the ground adjacent to and upon which the building is constructed. Includes surveyors, architects, foresters, engineers, and real estate licensees. 10 ME REV STAT § 3251 DEADLINE TO PERFECT Claim can be preserved by (1) filing lien within 90 days after ceasing labor, furnishing materials, or performance of services or (2) commencement of an enforcement action with 120 days after the last labor or materials. 10 ME REV STAT § 3253 10 ME REV STAT § 3255 BROKEN PRIORITY Date of lien relates back to when claimant/lienor’s materials or labor are used in erecting, altering, or repairing the building involved. Pineland Lumber Co. v. Robinson, 382 A.2d 33, 36 (Me.1978). “Commencement” does not appear to require a visible component since architects and surveyors are entitled to liens if their plans are ultimately used in the erection, alteration, or repairs of a building. Owner includes a mortgagee. If a lienor can show knowledge and consent by the lender, the lien has priority over the mortgage. Carey v. Boulette, 158 ME 204 (1962); Gagnon’s Hardware, 1998 ME 265. 10 ME REV STAT § 3251 DURATION OF LIEN Must be filed within 120 days after ceasing labor, furnishing materials, or performance of services. Time to file may be extended if owner dies or files bankruptcy. See 10 ME REV STAT § 3256. 10 ME REV STAT § 3255 CONTENTS OF LIEN (1) Sworn/subscribed statement; (2) amount due with credits given; (3) description of the property sufficiently accurate to identify it; and (4) name of the owners, if known Inaccuracies in statement of lien will not invalidate the same if information is ‘reasonably recognizable’ and unless it appears that the person making it willfully claims more than his due. 10 ME REV STAT § 3253 10 ME REV STAT § 3254 MAINE MAINE – 522 – 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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