Title 101: Making Sense of Title Insurance in Commercial Transactions

WHO MAY CLAIM Every person performing labor upon, providing or hauling equipment, tools or machinery for or furnishing materials to be used in the construction, alteration or repair to a structure. Includes surveyors and architects. Cubit Corp. v. Hausler, 114 N.M. 602, 602, 845 P.2d 125, 125 NM STAT § 48-2-2 DEADLINE TO PERFECT Lien filing deadline is contingent upon whether original contractor (one who contracts directly with owner) or not. • Original Contractor per NM STAT § 48-2-2.1(A): within 120 days after completion of his/her contract • Others: within 90 days of completion of work or furnishing of materials to repair, alter, or build upon real property. NM STAT § 48-2-6 BROKEN PRIORITY Date of lien for all lien claimants under a project relates back to date when any construction actually commences. • Commencement generally must be visible. First Interstate Bank of Texas v. Hutchens, 1991, 112 N.M. 497, 816 P.2d 1119. EXCEPTIONS: Where architect provides plans, but contracting party abandons construction, architect will still have lien with abandonment being constructive completion of project. Note, commencement of construction is only a condition precedent to giving a mechanics’ lien priority over subsequent liens, not owners. Architect could only have a superior interest to an owner, not a lender in the above circumstance. Cubit Corp. v. Hausler, 1992-NMSC-050, ¶ 14, 114 N.M. 602, 606, 845 P.2d 125, 129. NM STAT § 48-2-5 DURATION OF LIEN Lien will expire if no action is filed or binding arbitration is not commenced within 2 years after the filing of the claim of lien. NM STAT § 48-2-10 CONTENTS OF LIEN (1) Claim verified by oath of claimant or other; (2) statement of demands less credits; (3) name of (reputed) owner; (4) name of person by whom claimant was employed or to whom materials furnished; (5) statement of the terms, time given, and conditions of the contract; and (6) description of property sufficient for ID. Substantial compliance is sufficient. Above information must be included but only substantial correctness required. Ackerson v. Albuquerque Lumber Co., 1934, 38 N.M. 191, 29 P.2d 714. NM STAT § 48-2-6 NEW MEXICO NEW MEXICO – 534 – 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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