Mechanic’s Liens & Bond Claims
Mechanic’s Liens
A Mechanic's Lien is a legal claim against a property for unpaid construction or improvement work. In South Carolina, this powerful tool helps contractors, subcontractors, suppliers, and laborers secure payment for their services or materials provided to improve real property. If you're in the construction industry and have not been paid for your work, filing a mechanic's lien can be an essential step in recovering what you're owed.
A mechanic’s lien provides the claimant (the person or company who provided the work or materials) the right to potentially force the sale of the property to satisfy the debt owed. In South Carolina, there are strict timelines and procedures for filing, and missing a key deadline or failing to follow proper steps can invalidate the lien, so it’s important to contact an attorney as soon as possible.
How a Mechanic's Lien Works in South Carolina
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Notice Requirements: To preserve your rights to a mechanic’s lien, notice must be provided to the property owner within 90 days of the last day of work provided to the property or the last day of furnishing materials to property.
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Filing the Lien: Once the work is complete and payment has not been made, a lien claim can be filed with the Register of Deeds Office in the county where the property is located. The lien must be filed and served on the owner of the property within 90 days of the last day of work.
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Enforcing the Lien: If the debt is still unpaid after the lien is filed, the lien holder can file a lawsuit to foreclose on the lien, potentially forcing a sale of the property. This process must begin within six (6) months of the last day of work or furnishing.
Bond Claims
In some construction projects, especially public works or projects, a payment bond may be issued to protect those who have provided labor or materials but have not been paid. A Bond Claim allows subcontractors, suppliers, and laborers to recover the money owed to them through a claim made against the bond, rather than a mechanic’s lien on the property itself.
Bond claims are typically used when the property owner or general contractor has secured a surety bond as part of the project financing. These bonds are often required on public works projects but may also be part of private contracts. A bond claim ensures that workers and suppliers are paid, even when the primary contractor fails to meet their financial obligations.
How a Bond Claim Works in South Carolina
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Notice of Claim: For public projects, a Notice of Claim must typically be filed within 90 days after the last date of work or delivery of materials. For private projects, the timeline can vary depending on the terms of the bond.
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Filing the Claim: After sending/serving the appropriate notice, a formal claim is made to the surety company (the bond issuer), requesting payment from the bond fund.
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Enforcing the Bond: If the surety company does not settle the claim, a lawsuit may be necessary to enforce the bond claim. This typically must occur within one year from the date the work was completed.
How Our Firm Can Help You with a Mechanic’s Lien or Bond Claim
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Dealing with mechanic's liens and bond claims can be complex and time-sensitive. Our experienced legal team can guide you through the entire process, ensuring that your rights are protected and that you meet all necessary deadlines. Here's how we can assist you:
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Consultation and Strategy: We’ll review your case and determine the best course of action to secure your payment, whether that’s through a mechanic’s lien or a bond claim.
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Notice Compliance: We’ll ensure all notices required under South Carolina law are properly issued, so you don’t risk losing your rights.
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Lien or Bond Claim Filing: Our attorneys will handle the filing and service of your lien or bond claim, ensuring all documentation is complete and legally valid.
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Lien or Bond Enforcement: If payment is not made, we can take swift action to enforce the lien or pursue a bond claim, including filing a lawsuit if necessary.
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Dispute Resolution: In many cases, we can help mediate disputes to avoid lengthy litigation, helping you reach a resolution quickly.