The state of Maryland provides the ability of people who have repaired, improved or constructed real property to seek payment for the work performed by placing mechanic's liens against the property. By seeking and obtaining a mechanic's lien, contractors may ensure they are compensated for the work they performed for the property owner.
Under the law, when a contractor who has performed work according to the provisions of a contract may seek such a lien against any building, bridge or other piece of real property for which they have not received payment. The mechanic's lien can be for up to 15 percent of the value of the real property. Mechanic's liens may not be placed on real property for which a bona fide purchaser has completed payment for the disputed property.
In order to obtain a mechanic's lien, the contractor should file a petition for a mechanic's lien together with an affidavit and documents detailing the work performed. Upon filing the required paperwork, the court will provide a court date and will place the matter on the court's hearing docket. Copies of the filed paperwork must then be served on the non-paying party to afford them the ability to answer and defend against the sought-after lien against their property.
Mechanic's liens provide an invaluable method for contractors to seek and recover payment for work they performed when an owner has failed to pay. It is important that a company or contractor complete the paperwork appropriately and provide all of the correct documents needed in order to prove their case in court. When a property owner has failed to pay for work that was performed according to a contract's provisions, a mechanic's lien may be available to the construction company or contractor that performed the work. A real estate attorney may be able to help those facing liens or seeking to place one on a property.
Source: Tradition Notice Services, "CODE OF MARYLAND REAL PROPERTY", November 12, 2014