Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM Every contractor or subcontractor who provides work and/or furnishes material to erect repair, rebuild or improve a building (to the extent of 15% of its value) is entitled to the establishment of a mechanics’ lien (for purposes of the statute “work” includes the provision of architectural, engineering, survey and interior design services). MD. REAL PROPERTY CODE § 9-102 DEADLINE TO PERFECT A petition to establish mechanics’ lien must be filed in the circuit court of the county where the land is located within 180 days after the work has been finished or the materials furnished. MD. REAL PROPERTY CODE § 9-105 NOTE: In order to be entitled to a mechanics’ lien, subcontractors must give written notice of intention to claim a lien to the owner of the land within 120 days after doing work or furnishing materials. MD. REAL PROPERTY CODE § 9-104 BROKEN PRIORITY The filing of a petition to establish mechanics’ lien constitutes notice to a purchaser/lender of the possibility of a lien being perfected/established and a subsequent purchaser/lender would take title subject to any mechanics’ lien perfected/established. MD. REAL PROPERTY CODE § 9-102(E) DURATION OF LIEN The right to enforce a mechanics’ lien expires 1 year from the day on which the petition to establish mechanics’ lien was first filed. During this time a petition to enforce the mechanics’ lien may be filed. If a petition to enforce is filed within the 1 year period, the mechanics’ lien will remain in full force and effect until the conclusion of the enforcement proceedings. NOTE: In Maryland, it is common practice for the initial filing to be a petition to establish and enforce mechanics’ lien. MD. REAL PROPERTY CODE § 9-109 CONTENTS OF LIEN A petition to establish a mechanics’ lien must set forth the following: (1) the name and address of petitioner; (2) the name and address of the property owner; (3) the nature of work and/or kind and amount of materials furnished; the time the work done/materials furnished; the name of the person for whom the work done/materials furnished; the amount/sum claimed to be due; (4) a description of the land and a description adequate to identify the building; (5) if the petitioner is a subcontractor, facts showing proper notice given to owner; (6) an affidavit setting forth facts entitling petitioner to lien; and, (7) copies of material papers which constitute the basis of the lien claim (or affidavit in its absence). MD. REAL PROPERTY CODE § 9-105 MARYLAND MARYLAND – 523 – 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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