Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM One who performs labor or furnishes materials to erect, alter, repair, remove, or improve real property pursuant to an agreement/consent of the owner or owner’s agent. Includes architects, landscape artists, engineers, and surveyors. MA GEN L CH 254 § 2 (general) MA GEN L CH 254 § 2C (design professionals) MA GEN L CH 254 § 2D (subcontractors of design professionals) MA GEN L CH 254 § 4 (subcontractors) DEADLINE TO PERFECT To have a lien, one must file a notice of contract and, in some cases, a statement of account. Notice of Contract must be filed no later than the earlier of: • 60 days after filing or recording the notice of substantial completion under MA GEN L CH 254 § 2A; • 90 days after filing or recording of the notice of termination under MA GEN L CH 254 § 2B; or • 90 days after such person or any person under him/her has last performed or furnished materials. Statement of Account must be filed by Contractors, Subcontractors, and Design Professionals by the earliest of: • 90 days after filing notice of substantial completion under MA GEN L CH 254 § 2B; • 120 days after filing notice of termination under MA GEN L CH 254 § 2B; or • 120 days after last day one entitled to enforce a lien has furnished labors/materials • If design professional: 30 days after last day that a notice of contract can be filed. Notice of Contract MA GEN L CH 254 § 2 MA GEN L CH 254 § 4 Statement of Account. MA GEN L CH 254 § 8 BROKEN PRIORITY Lien priority relation back dependent on type of mechanics’ lien: • Personal Laborers (MA GEN L CH 254 § 1): Lien under § 1 will have priority over mortgage when work/labor performed in the erection, alteration, repair, or removal of an improvement, which erection, alteration, repair, removal, or improvement began before mortgage recorded. • General/Subcontractors (MA GEN L CH 254 § 2/MA GEN L CH 254 § 4): Lien will have priority over mortgages recorded after the date notice of contract recorded Design Profs (MA GEN L CH 254 § 2C; MA GEN L CH 254 § 2D): Lien will have priority over mortgages recorded after notice of contract recorded if design work pre-dates when mortgage was registered/recorded. A prior recorded mortgage only has priority over a subsequently recorded section 2 or 4 mechanic’s lien as to amounts actually advanced or unconditionally committed to be advanced under the mortgage prior to the recording of the notice of contract. See MA GEN L CH 254, SECTION 7 (B) AND (C). MA GEN L CH 254 § 7 DURATION OF LIEN Lien will be lost unless civil action is commenced within 90 days after filing a statement of amount due pursuant to MA GEN L CH 254 § 8. CONTENTS OF LIEN Contents of lien dependent on whether Notice of Contract or Statement of Account and the type of lien claimant: • Laborer/Notice of Contract: MA GEN L CH 254 § 1 • General Contractor/Notice of Contract: MA GEN L CH 254 § 2 • Design Professionals/Notice of Contract: MA GEN L CH 254 § 2C • Subcontractor/Notice of Contract: MA GEN L CH 254 § 4 • All Parties/Statement of Account: MA GEN L CH 254 § 8 Strict compliance required. Liens will be invalidated if wrong owner, failure to provide notice to owner, missing deadlines, etc. 57 Mass. Prac., Mass. Construction Law § 11:15 MASSACHUSETTS MASSACHUSETTS – 524 – 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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