When you get work done on your home, the contractor can place a mechanic's lien on the property if you do not pay him for the work. In Massachusetts, contractors can take the first step towards placing and enforcing a lien before the work is complete, but most don't because they don't want to alienate customers. In any case, if you don't pay the lien, the contractor can go to court to foreclose on your house. Massachusetts allows architects and designers to place liens on property as well; however, if there is more than one lien on the property, the designer's lien is considered a lower priority than the construction engineer's lien.
Notice of Contract
File a notice of contract with the register of deeds after you complete work on a Massachusetts property. As of July 2011, you have 90 days after the completion of work to file a notice of contract in Massachusetts. You have the option to file the notice of contract as soon as you begin working on the home; however, if you do so, it may make your customers uncomfortable and cause them to choose a different contractor to work with.
Lien Application
File a lien application with the court within 90 days of filing the notice of contract. The lien application provides information about the property, the work you did and how much the property owner owes you. Provide supporting documentation such as invoices or bills proving you did the work. You may wish to consult an attorney to help you file the contract, as the court can dismiss your lien if you do not file it correctly.
File a Lawsuit
Sue the property owner to enforce the lien. This is similar to a regular mortgage foreclosure; you or your attorney basically asks the court to foreclose on the property to satisfy the debt. Show that you placed a lien and that the property owner did not pay. The property owner can stop the foreclosure by repaying the lien before the foreclosure process ends.
Consideration
Contractors, design professionals, mortgage lenders and the Internal Revenue Service may all file liens against Massachusetts property to satisfy debts. If more than one creditor files a lien against the same piece of property, the court assigns priority to the lien holders. The IRS has the highest priority, followed by mortgage lenders and contractors. Design professionals are the lowest priority lienholders as of July 2011.
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