What is a pre-lien?
A pre-lien is a document sent to the property owner identifying your company as doing work on the project. In the past, property owners have been subject to Mechanic’s Liens filed on their property by unpaid construction professionals without any notice. This notice advices property owners of their rights and informs them of the importance of obtaining Mechanic’s Lien Waivers when paying their contractor in full for the project or to pay you directly. This notice is a positive, standard procedure in the construction industry and benefits you, the property owner and the contractor!
Why serve a pre lien?
We know it would be best for you if filing a lien was never necessary and everyone paid on time and in full. A properly served pre-lien notice should say to all parties you are a professional and you treat all aspects of your business as such. In addition, it should say you are providing labor or materials or both and you expect to be paid in a timely manner. We believe filing a pre-lien notice consistently on each project is the best way to proactively manage your receivables and will effectively allow you to file fewer liens. The filing of a pre-lien will allow you to get paid in front of other sub-contractors that have not filed a pre-lien! IF YOU DO NOT FILE A PRE-LIEN WITHIN THE REQUIRED TIME YOU LOSE YOUR RIGHT TO LIEN!
When to file a pre-lien when not in contract with the property owner?
- In Minnesota within 45 days from your first day of work mailed via certified mail.
- In Wisconsin within 60 days from your first day of work mailed via certified mail.
*We can file pre-liens in all 50 states
Filing a pre-lien when in contract with the home owner:
When working directly with the homeowner your pre-lien notice can be included in the contract! This notice is called “Contract Notice to Owner” and should be included in all your direct contracts. Please ask us for the proper verbiage for the states in which you do business.