Conditional Waiver and Release Upon Final Payment - Corporation or LLC
Note: This summary is not intended
to be an all-inclusive discussion of Maine's construction or mechanic's
lien laws, but does include basic provisions.
What is a construction or mechanic's lien?
Every state permits
a person who supplies labor or materials for a construction project to
claim a lien against the improved property. While some states differ
in their definition of improvements and some states limit lien claims to
buildings or structures, most permit the filing of a document with the
local court that puts parties interested in the property on notice that
the party asserting the lien has a claim. States differ widely in
the method and time within which a party may act on their lien. Also
varying widely are the requirements of written notices between property
owners, contractors, subcontractors and laborers, and in some cases lending
institutions. As a general rule, these statutes serve to prevent
unpleasant surprises by compelling parties who wish to assert their legal
rights to put all parties who might be interested in the property on notice
of a claim or the possibility of a claim. This by no means constitutes
a complete discussion of construction lien law and should not be interpreted
as such. Parties seeking to know more about construction laws in
their state should always consult their state statutes directly.
Who can file a lien in this state?
Maine law permits any
party who performs labor or furnishes labor, or materials, for the purposes
of erecting, altering, moving, or repairing, a house or building, including
a wharf or pier, by virtue of a contract with the consent of the owner,
to claim a lien. M.R.S.A. § 3251.
How long does a party have to file a lien?
The liens mentioned
in § 3251- § 3254 may be preserved and enforced by action against
the debtor and owner of the property affected by filing an action against
the debtor and owner within 120 days after the last labor, services, or
materials are provided. M.R.S.A. § 3255.
Are liens assignable?
Maine statutes on construction
liens do not specifically speak to whether liens may be assigned to other
parties.
Does this state require or provide for a notice
from subcontractors and laborers to property owners?
Yes. A party that
provides labor, materials, or services without a contract with the property
owner risks losing his lien if the property owner sells the property.
Although Maine law is extremely complex on this issue, as a general rule,
when a party provides labor, materials, or services to a property owner
without a contract with the owner (hereinafter called subcontractor), that
party is generally entitled to a lien for the value of labor, materials,
or services provided. However, the owner is entitled to claim as
a defense that the subcontractor is only entitled to a lien for the amount
of the balance remaining due on the contract between the owner and the
principal contractor. This defense only applies, however, to sums
paid from the owner to the contractor before the subcontractor files suit
or provides a Notice to Owner. This Notice communicates to the owner
that the owner has a responsibility to ensure that the subcontractor is
paid or the owner may be required to pay the amount due twice.
In addition, Maine law
states that If a party provides labor, materials, or services, without
a contract with the property owner, that owner may use a written notice
to deny responsibility for the improvements. However, Maine law allows
a party to file a Notice of Furnishing within ninety (90) days after he
ceases to provide labor, materials, or services. This Notice will
preserve the lien claimant's lien and must be filed with the register of
deeds.
Does this state require or provide for a notice
from the property owner to the contractor, subcontractor, or laborers?
No. Maine statutes do not require property owners to provide notices to contractors,
subcontractors, or laborers.
Does this state require a notice prior to starting
work, or after work has been completed?
No. Maine statutes
do not require a Notice of Commencement or a Notice of Completion as required in
some other states.
Does this state permit a person with an interest
in property to deny responsibility for improvements?
Yes. If labor,
materials, or services were not furnished by a contract with the owner
of the property affected, the owner may prevent a lien by giving written
notice that the owner will not be held responsible. M.R.S.A. §
3252.
However, the lien claimant
may preserve his lien by filing a Notice of Furnishing.
Is a notice attesting to the satisfaction of a
lien provided for or required?
No. Maine law does not require a party who has had their lien satisfied to provide or
file a Notice of Satisfaction. However, please see ME-08-09 Release
of Lien as an example of a form that could be used by a lien holder to
provide a property owner with documentation that the lien has been satisfied
after payment in full.
By what method does the law of this state permit
the release of a lien?
As stated above,
Maine statutes have no specific provision for the release of a lien.
However, please see M.R.S.A. § 3263, regarding the filing of
a petition by the property owner requesting that the court order the lien
holder to accept a bond and release the lien.
