It is an unfortunate reality in the construction and building industry that often times those who make a substantial contribution to a project are not always paid for their services. If you have failed to be paid in full after providing labor, materials, equipment, or other services on a construction project then there is a good chance that you are entitled to file a lien pursuant to Georgia law. That said, the lien filing process is extremely time sensitive and can be tricky to navigate.

Under Georgia lien law, all liens are strictly construed against the person or company filing the lien. This means that even the smallest mistake or omission can invalidate a lien. Further underpinning the importance of proper lien filing is the fact that liens serve as a cloud upon the title of the real estate against which they are filed. Consequently, a lien claimant may be responsible for damages suffered by the owner which are deemed to be the result of an improper lien. Nonetheless, the lien laws in Georgia are invaluable tools that when utilized correctly, can ensure that you are adequately compensated for the labor and services you provide to a construction project. Thus, this article is intended to provide a thorough explanation of Georgia’s mechanics and materialmen’s lien process so that you may better understand your lien rights

Who has a right to file a lien in Georgia?

Not just anyone can file a lien for a past due invoice.  A materialmen’s lien can greatly improve a subcontractor or supplier’s odds of recovery; however, only certain parties providing certain services are entitled to file a lien for nonpayment. On the whole, general contractors, subcontractors, and material suppliers who have provided services, labor, or materials which have improved the real estate are entitled to file a claim of lien. In addition, Georgia law allows architects, registered surveyors, engineers, and manufacturers of machines the right to file liens if they are not paid for their services.  O.C.G.A. Section 44-14-361 makes limited lien right allowances for others as well.

Are there any requirements that I must meet before filing a lien?

It is important to take action at the outset of your contribution to a construction project so that your lien rights are preserved should an issue with nonpayment arise subsequent to your performance under the contract. Depending on your designated role on a project you MAY or MAY NOT have a condition precedent to preserve your right to file a lien. If your contract is directly with the project owner or with the general contractor then there is no requirement that a preliminary notice be given. However, if your contract is with a subcontractor then you are required to send a Notice to Owner and Notice to General Contractor within thirty (30) days from the date you commence work on the project. These notices should be sent every time you contract with a subcontractor or supplier as they will preserve your right to file a materialmen’s lien if necessary. Failure to timely send the preliminary notices may prevent you from having any lien rights.

What is the deadline to file a lien in Georgia?

Even if you are entitled to file a construction lien pursuant to Georgia law, you must still meet the deadline for filing such lien.  Generally speaking, all liens in Georgia must be filed within ninety (90) days of the last day in which work was actually performed on the jobsite. If the potential lien claimant signed a Georgia statutory lien waiver form, then the time period in which a valid lien may be filed may be reduced to either (i) 90 days from the last day worked; or (ii) 60 days from the date of the lien waiver; whichever is less. Time is of the essence when it comes to exercising your lien rights so it is best practice to not wait until the last minute to seek legal representation in enforcing your lien rights.

Careful scrutiny is required when filing a lien.

It may seem tempting to take shortcuts when it comes to filing your lien, but often times the desire to save a little time or a quick buck can lead to disastrous consequences such as losing out on your lien rights due to improper filing. The rules and regulations surrounding Georgia lien law are very detail oriented and time sensitive. Accordingly, it is highly advisable to make sure that your hard work does not go uncompensated due to a technicality which leads to the forfeiture of your lien rights. The more detail that is provided in a lien, the better. This means providing an accurate legal description of the property, identifying the owner of the property, and providing a detailed breakdown of the labor and/or services contributed to the project. Georgia lien law is very formulaic, and it is essential that you meticulously follow the formula when filing your lien.

Where do I file my lien in Georgia?

Not only are Georgia lien laws time sensitive, but it is also imperative that your lien be filed in the correct location. There are 159 counties in Georgia, and in order to perfect your lien, it must be filed in the county where the property to be liened is located. Liens are filed with the Clerk of the Superior Court in the county of the project’s location. This will ensure that the lien will be visible for those performing title searches on the property.

Notice of the Lien MUST be given to the owner of the real property.

Continuing with the time sensitive deadlines underpinning Georgia lien law, the party filing the lien must give notice of the lien to the owner of the licensed real estate within two (2) business days of the filing of the lien. It is highly advisable to deliver notice via certified mail so that you have proof of sending and delivery.

How do I enforce/perfect my mechanic’s lien?

Pursuant to Georgia law, your lien is valid for one year from the date of filing.  This time period allows the lien claimant an opportunity to settle or negotiate payment of their claims. However, if payment is not received within the year then you must file a lawsuit against the person or entity with whom you contracted. Additionally,  a Notice of Filing of Action must be filed within thirty (30) days of the date your lawsuit is filed, with notice given to the owner of the liened property. If you prevail in your lawsuit, then your lien remains enforceable beyond the anniversary of the filing of the lien.  This is frequently referred to as “perfecting your lien.”

When am I able to foreclose upon a Georgia materialmen’s lien?

After you prevail in a lawsuit against the entity which contracted with you for services, labor or material, then you can take the steps necessary to foreclose upon the lien. This process can be quite complicated because unless you contracted directly with the property owner then you will likely have to file a separate lawsuit to initiate foreclosure proceedings. The good news is that liens in Georgia are usually resolved prior to foreclosure proceedings, but if you find yourself with a valid lien without payment, then you have the option to foreclose the lien and force the sale of the real estate to satisfy the debt you are lawfully owed.

Georgia’s lien laws serve as a useful tool for enforcing payment for the work, materials or services provided by a contractor or a supplier; however, the rules and procedures for exercising your lien rights are very strict and often times complex. The RAD Firm can assist you in ensuring that your lien rights are not forfeited and that ultimately, you are compensated for your work.