Creditors' Rights

Question 1

What is required for a mechanic’s lien?

Answer 1

Performance of services or furnishing of materials valued at $150 or more for work on property

Question 2

How do you perfect a mechanic’s lien if you are a:

General contractor

Sub-contractor

Answer 2

General contractor

• File memorandum of mechanic’s lien with clerk’s office in city or county where property is located
• Within 90 days of completion or termination of work
• Including:
  
  • Name of owner
  • Amount of lien
  • Description of property

Sub-contractor

• Same as above
• Also notify owner and general contractor

Question 3

What is the blanket defense to a mechanic’s lien?

Answer 3

By not proportioning the lien between different pieces of property, the mechanic will interrupt other creditors

But, Virginia law allows blanket liens if single contract for the work performed

Question 4

What is the one lot defense to a mechanic’s lien?

Answer 4

If a mechanic’s lienholder releases one lot subject to the lien, he is estopped from enforcing the lien against the remaining lots