Levelset has helped me file a mechcanics lien on a condo we painted for a builder. The condo is used as a model home for the whole development of 120 units. Since it is a model home the builder has no intentions of selling it anytime soon. So the mechanics lien doesn't give me any leverage on me getting paid. Can I charge this builder interest until he pays ?
The general rule is that you can only charge interest on past-due amounts if you have a written agreement between the parties allowing you to charge interest. That said, even if you have such an agreement, any interest cannot be included in your lien claim, only the contracted amount can be included in your lien claim.
Beyond that, you may face another potential issue. In addition to recording the lien, a contractor, subcontractor, or supplier must file a lawsuit to enforce the lien within 120 days from the date that the labor or materials were last provided. The lawsuit must name the party that owes the money, the property owner, and any other party with an interest in the real property (e.g., other lien holders, mortgagees, etc.). Contractors, subcontractors, and suppliers must be sure meet this deadline, because it is strictly enforced and failure to properly preserve or enforce a mechanic’s lien will result in a loss of that lien. Once a mechanic’s lien is lost, it may not be revived.
Thank you very much. I will file a lawsuit to enforce the lien.
My pleasure and best of luck going forward.