Lien Claim Services in Seattle & Washington State
Contractors and material suppliers must jump through several hoops in order to have a perfected claim of lien. One of those hoops is the preparation and recording of a lien claim.
By definition, a lien claim is the right to satisfy an obligation out of certain property owned by the debtor. In the case of construction, it means that a lien claimant (contractor, supplier or equipment vendor) can record a document that creates an encumbrance against the real property that they have helped to improve. The encumbrance, or lien, is an attachment to title, thus impacting the property owner's ability to refinance or sell the property. In many instances, the property could still be refinanced or sold, but the lien claimant would have to be paid from the closing proceeds.
How to Protect Your Lien Rights
From our perspective, perfecting a lien claim is the most cost effective strategy for securing a construction receivable. Just compare the typical cost of $200 to record a lien to that of a standard lawsuit for breach of contract. In addition, even though the materials or labor were furnished to one party, for example the subcontractor, a lien claim can make the property owner liable for the same obligation. This diversification of liability is a very powerful tool.
As with all remedies created by statutes, the lien claim must be carefully drafted, must include the correct ownership information, legal description, tax parcel and information about the lien claimant's unpaid work or materials. The document must also be notarized with the correct form and, in many cases the claimant's statement must be verified. If it sounds complicated and cumbersome, you are beginning to see why many construction trades outsource the task to a law firm or lien service.
Levy · von Beck & Associates has been providing lien perfection services to clients since 1983, and it is a core part of our business. We encourage you to let us field your questions about filing lien claims and of the technical issues that might cause a lien to fail.