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How to Put a Lien on a Property in Ohio: A Comprehensive Guide

Putting a lien on a property in Ohio is a powerful tool for securing payment for debts. The process involves meticulously following Ohio’s legal requirements, ensuring you have a valid claim, and adhering to strict deadlines.

Understanding the Basics of Liens in Ohio

What is a Lien?

A lien is a legal claim or right against a property, giving the lienholder (the party filing the lien) the right to seize and sell the property if the debt is not paid. In Ohio, there are several types of liens, including:

Mechanic’s Liens: Filed by contractors, subcontractors, laborers, and material suppliers for unpaid work or materials provided for improvements to real property.
Judgment Liens: Resulting from a court judgment against a property owner.
Tax Liens: Placed by the government for unpaid taxes.
Mortgage Liens: A common type of lien held by lenders as security for a mortgage loan.

The Steps to Filing a Mechanic’s Lien in Ohio

The most common type of lien individuals file is the mechanic’s lien. Here’s how to file one in Ohio:

Serve a Notice of Furnishing (if required): This notice must be served on the property owner, their designee, and the original contractor (if you are a subcontractor or supplier) within 21 days of first performing work or supplying materials. Failure to do so within this timeframe can affect the amount you can lien. It informs them that you are providing labor or materials to the project. It’s not always required, particularly if you have a direct contract with the property owner.
Prepare the Affidavit for Mechanic’s Lien: This is the legal document that officially places the lien on the property. It must include:
- The amount of the claim.
- The name of the property owner (and spouse if applicable).
- The name and address of the lien claimant.
- A description of the property subject to the lien (the legal description is best).
- The date on which you first and last performed work or supplied materials.
- A statement that you have complied with all applicable notice requirements.
- It must be notarized.
Record the Affidavit: The affidavit must be recorded with the County Recorder’s office in the county where the property is located. The deadline for recording is 75 days from the last date you provided labor or materials for a residential project, or 120 days for commercial projects.
Serve a Copy of the Affidavit on the Property Owner: You must serve a copy of the recorded affidavit on the property owner within 30 days of recording it. Service must be accomplished in the same manner as a summons in a civil action. This means using certified mail, personal service, or another legally recognized method.
Enforce the Lien (File a Lawsuit): If the debt is not paid, you must file a lawsuit to enforce the lien within two years from the date you filed the lien. Failure to do so will result in the lien expiring. This lawsuit asks the court to order the sale of the property to satisfy the debt.

Considerations for Judgment and Tax Liens

Judgment Liens: If you’ve obtained a court judgment, you can record a certificate of judgment with the county recorder. This creates a lien on any real property the debtor owns in that county.

Tax Liens: These are automatically attached to property for unpaid federal or state taxes. The IRS or Ohio Department of Taxation records the lien with the county recorder.

Navigating Ohio’s Lien Laws: Key Considerations

Strict Compliance: Ohio lien laws are strictly construed. Any errors or omissions in the lien documentation or failure to meet deadlines can invalidate the lien.
Research is Crucial: Before filing a lien, conduct a title search to verify property ownership and identify any existing liens.
Legal Counsel: Given the complexities of Ohio lien law, consulting with an attorney is highly recommended. They can ensure you meet all legal requirements and protect your rights.
Negotiation: Consider negotiating a payment plan or settlement with the property owner before filing a lien. Litigation can be expensive and time-consuming.
Release of Lien: Once the debt is paid, you must promptly file a release of lien with the County Recorder to clear the property’s title. Failure to do so can result in penalties.

FAQs: Putting a Lien on a Property in Ohio

1. What happens if I miss the deadline to file a mechanic’s lien?

Unfortunately, missing the deadline to file a mechanic’s lien means you lose your right to claim a lien against the property. It’s crucial to adhere to the strict deadlines outlined in Ohio law. Consider alternative methods for debt recovery, such as pursuing a breach of contract lawsuit.

2. Can I file a lien on a property if I only supplied materials, but didn’t perform any labor?

Yes, in Ohio, material suppliers have the right to file a mechanic’s lien for the unpaid cost of materials used to improve the property. You must still meet all other requirements, including providing the Notice of Furnishing (if applicable) and filing the Affidavit for Mechanic’s Lien within the specified deadlines.

3. How much does it cost to file a lien in Ohio?

The cost varies by county, but it generally includes recording fees charged by the County Recorder’s office. These fees typically range from $30 to $75. You may also incur expenses for title searches, legal advice, and service of documents.

4. What is the difference between a mechanic’s lien and a mortgage?

A mechanic’s lien is a claim for unpaid work or materials used for property improvement, while a mortgage is a voluntary agreement where the property owner borrows money and grants the lender a security interest in the property. Mortgages typically take priority over mechanic’s liens, depending on when they were recorded.

5. How do I remove a lien from my property in Ohio?

There are several ways to remove a lien:

Payment: The most straightforward way is to pay the debt owed to the lienholder. Once paid, the lienholder is required to file a release of lien.
Bonding Off: You can obtain a surety bond equal to the amount of the lien. This substitutes the bond for the property as security for the debt.
Court Order: You can file a lawsuit challenging the validity of the lien and ask the court to remove it.
Lien Expiration: If the lienholder fails to enforce the lien within the statutory timeframe (two years for mechanic’s liens), the lien expires and becomes unenforceable.

6. What is the priority of liens in Ohio?

The priority of liens generally follows the “first in time, first in right” rule. This means that the lien recorded earliest typically has the highest priority. However, there are exceptions. For example, tax liens often have priority over other liens, regardless of when they were recorded.

7. Can a homeowner prevent a contractor from filing a lien?

A homeowner cannot completely prevent a contractor from filing a valid lien if they are owed money for work performed. However, homeowners can take steps to protect themselves, such as:

Obtaining Lien Waivers: Before making payments, require the contractor to provide lien waivers from themselves, subcontractors, and suppliers, confirming they have been paid for the work covered by the payment.
Paying Jointly: Make payments jointly to the contractor and subcontractors or suppliers to ensure everyone is paid.
Requiring a Performance Bond: Demand that the contractor obtain a performance bond, which guarantees the completion of the project and protects against liens.

8. What happens if the property owner sells the property while a lien is in place?

The lien remains attached to the property, even if it is sold. The new owner takes the property subject to the lien. This means the lienholder can still enforce the lien against the property, regardless of the change in ownership.

9. Can I file a lien on a leased property in Ohio?

Filing a lien on a leased property is possible, but it’s more complex. You can only lien the tenant’s leasehold interest, not the underlying property itself, unless the owner authorized or ratified the improvements. Thoroughly research the lease agreement and consult with an attorney.

10. What information should I gather before filing a mechanic’s lien?

Gather as much information as possible, including:

The property owner’s name and address (and spouse if applicable).
The legal description of the property.
A copy of the contract or agreement for the work performed.
Detailed records of labor and materials provided, including dates and costs.
Copies of invoices and payment requests.
Any communication with the property owner regarding payment.

11. Is it necessary to hire an attorney to file a lien in Ohio?

While not legally required, hiring an attorney is highly recommended. Lien laws are complex, and an attorney can ensure you meet all the legal requirements and protect your rights. They can also represent you in any legal proceedings related to the lien.

12. What is a Notice of Commencement, and when is it required in Ohio?

A Notice of Commencement is a document filed by the property owner with the County Recorder before work begins on a construction project. It provides information about the project, including the owner’s name and address, the contractor’s name and address, a description of the property, and the name and address of the lender (if any).

While it is the property owner’s responsibility to file it, it’s highly beneficial for contractors, subcontractors, and suppliers because it provides key information for filing a mechanic’s lien. Failure of the owner to file a Notice of Commencement does not prevent a lien claimant from pursuing a mechanic’s lien.