Construction Liens Don’t Last Forever!

I had a contractor with a construction lien call me up the other day wanting to take action on its lien. However, I could not assist this contractor with its lien.  The lien expired by operation of law…for two different reasons…if you can believe that.

First, the lien was stale in that it was recorded more than one year ago.  Construction liens do not last forever.  They must be foreclosed on within one year from its recording date unless an owner does something to shorten this one year period.  After this one year period, you cannot foreclose on the lien.

Second, the owner recorded a Notice of Contest of Lien to force the contractor to foreclose on the lien within 60 days. An owner can record this to shorten the one year period discussed above. However, the owner recorded the Notice of Contest of Lien late in the game such that the expiration of the 60-day period closely coincided with the expiration of the one year period.  Thus, the owner really did not need to record the Notice of Contest of Lien as the lien was going to expire anyway.  If you are interested in the Notice of Contest of Lien, you want to record one sooner than later.

So the opportunity to foreclose on the lien which collateralized the non-payment against the property was lost. It should not have been lost.  And, unfortunately as the case may be, you snooze, you lose.  In this instance, the opportunity to collect was leveraging the lien which now expired.  Don’t let this happen to you.

Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.

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