Contractors, Remember to Perfect Your Mechanic's Lien to Stay Protected
Section 29-5-10 of the South Carolina Code of Laws Annotated allows providers of labor or materials for the repair, alteration, or erection of a structure to file a lien either on the structure or on the owner's interest in the land on which the structure is located. The materials must be actually used in such repair or erection to be "lienable".
Contractors must remember, however, to follow the statutory procedures for filing and perfecting a lien to be able to enforce their right to payment against owners. First, file the mechanic's lien within 90 days of the completion of the work in the county where such work was performed. S.C. Code Ann. Section 29-5-90. You may file such lien either in the Register of Deeds Office or with the Clerk of of Court. Remember to serve the owner with a copy of the lien. Perfection is valid only if the filed statement adequately describes the affected property and identifies the property owner's name.
Contractors must foreclose the lien either six months from the last day labor or materials were provided or six months from the date the lien was filed, whichever is earlier. S.C. Code Ann. Section 29-5-120. Note, however, that warranty or repair work by the contractors may revive the contractors' opportunity to file a lien if they had failed to do so initially. If an owner asks the contractor for additional repairs or other obligations under a warranty, the time for filing a mechanic's lien starts with the last day the latest work or materials were provided. Butler Contracting, Inc. v. Court St., LLC, 369 S.C. 121, 130-31 (2006). BUT, such additional labor or materials must be "done in good faith at the request of the owner OR for the purpose of fully completing the contract." Id. at 130. If the contractor provides the owner with such additional labor or materials merely as a gratuity or a friendly accommodation to the owner, the period for filing a lien will not restart. Id. Good faith means that the contractor is not doing the additional work solely to get a new chance to file the lien.
This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.
Posted by Ryan McCabe at 5/13/2009 1:12 PM 
Categories: Liability and Risk Management,Contractors,Contract Law,Mechanic's Liens
Categories: Liability and Risk Management,Contractors,Contract Law,Mechanic's Liens
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