For construction liens to be valid, the lien must be recorded within 90 days from the lienor’s last day performing work–this is known as the lienor’s final furnishing date. A lienor’s final furnishing date is largely a factual based determination.
There is a four part test a court will apply, particularly in close call situations where the date the lienor is relying on as its final furnishing date is iffy.
This test is: 1) whether the work was performed in good faith; 2) whether the work was performed within a reasonable time; 3) whether the work was performed in pursuance of the lienor’s contract; and 4) whether the work performed was necessary for a completed project.
Check here for more information on this test and the factual determination of a final furnishing date.
It is imperative that lienor’s remember this 90-day window to record a lien from its final furnishing date. A lien recorded outside of this 90-day window will be no good; the lien will be deemed invalid. Clearly, this should never occur.
From an owner’s standpoint, you always want to consider whether the lien was recorded timely and, if not, your arguments to support that the lien should be deemed untimely. Although the final furnishing date is fact-based, this does not mean you don’t have an argument to declare the lien invalid if the facts warrant the argument.
When dealing with a lien, it is always smart practice to consult a lawyer that has experience dealing with the nuances of construction liens.
Please contact David Adelstein at firstname.lastname@example.org or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.