Mississippi Lien Law
In 2014, Mississippi enacted new laws concerning construction liens against real property. See Mississippi Code of 1972 Annotated § 85-7-401, et seq. The grounds and procedure for establishing construction liens against real property are outlined below.
1. Who may claim a lien?
Persons furnishing labor, services or materials with respect to real estate may claim a lien. This includes: contractors, subcontractors, materialmen, registered architects, professional engineers and land surveyors. The labor, services or materials must be furnished at the instance of the owner, design professional or contractor or a subcontractor who contracts directly with a contractor.
Subcontractors or materialman not contracting directly with the prime contractor or a subcontractor may also claim a lien so long as they provide notice to the prime contractor or owner within thirty (30) days of their first delivery of labor or materials. This notice must include to whom services or materials are being provided as well as where and why.
A party that is required to be licensed under state law but is not licensed or contracts with a party that is not licensed forfeits the right to claim a lien.
Miss. Code Ann. § 85-7-403, 407 (2014).
2. When and how does a party claim a lien?
Any party seeking a lien must file a claim of a lien within ninety (90) days after the last work performed on the real property.
The claim is filed in the office of the clerk of the chancery court in the county where the property is located.
After the claim of lien is filed, the claimant is required to send a copy of the claim to the owner of the property (or to the contractor if the owner is unknown) within two (2) business days of filing the claim.
After the claim of lien is filed, the claimant must bring a lawsuit seeking recovery and payment of the lien within one hundred eighty (180) days from the filing the claim. Otherwise, the claim of lien expires.
If an owner or contractor challenges a lien by filing a notice of contest of lien, the lien shall expire within ninety days (90) days of the filing of a notice of contest or one hundred eighty (180) days from the original claim, whichever is earlier.
Miss. Code Ann. § 85-7-405, 421, 423 (2014).
3. What language must the claim of lien contain?
Mississippi law requires that a lien contain a statement regarding its expiration after one hundred eighty days (180) as well as notice to the owner of the right to contest the claim of lien. The following language is provided by statute:
A.B., a mechanic, contractor, subcontractor, materialman, machinist, manufacturer, registered architect, registered forester, registered land surveyor, registered professional engineer, or other person (as the case may be) claims a lien in the amount of (specify the amount claimed) on the building, structure, house, factory, mill, machinery, or railroad (as the case may be) and the premises or real estate on which it is erected or built, of C.D. (describing the houses, premises, real estate, or railroad), for satisfaction of a claim which became due on (specify the date the claim was due, which is the same as the last date the labor, services or materials were supplied to the premises) for work performed or labor, services provided (or whatever the claim may be).
THIS CLAIM OF LIEN EXPIRES AND IS VOID ONE HUNDRED EIGHTY (180) DAYS FROM THE DATE OF FILING OF THE CLAIM OF LIEN IF A PAYMENT ACTION IS NOT FILED BY THE CLAIMANT WITHIN THAT TIME PERIOD.
NOTICE TO OWNER OF PROPERTY: You have the right to contest this claim of lien pursuant to Mississippi law.
Miss. Code Ann. § 85-7-405 (2014).
4. Liens against single-family residential homeowner
For single-family residential construction, payment by an owner to a contractor or design professional for work of a subcontractor, materialman, professional engineer or professional surveyor is an absolute defense against a claim of lien.
If a subcontractor, materialman or design professional does not have a contract with the owner of the property, they must file pre-lien written notice at least ten (10) days before filing a claim of lien as outlined above. The pre-lien written notice should be in the following form:
PRE-LIEN NOTICE TO OWNER
TO: [NAME AND ADDRESS OF OWNER]
TAKE NOTICE THAT THE UNDERSIGNED IS A PERSON HAVING A RIGHT TO A LIEN PURSUANT TO SECTION 85-7-403, MISSISSIPPI CODE OF 1972, WHO DOES NOT HAVE A DIRECT CONTRACT WITH THE OWNER, HAS PROVIDED LABOR, SERVICES OR MATERIALS FOR THE IMPROVEMENT OF PROPERTY COMMONLY KNOWN AS
(“THE PROPERTY”), FOR THE SUM OF $ FOR WHICH THE UNDERSIGNED HAS NOT BEEN PAID, AND INTENDS TO FILE A CLAIM OF SPECIAL LIEN ON THE SUBJECT PROPERTY IN TEN (10) OR MORE DAYS FROM THE DATE HEREOF.
SO NOTIFIED, THIS THE DAY OF , 20 .
LIEN CLAIMANT: (PRINT NAME)
BY: (SIGNATURE)
ITS: (PRINT TITLE)
Miss. Code Ann. § 85-7-409, 433 (2014).
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