Maryland Mechanic’s Lien Lawyer

On this page, our Maryland real estate attorneys discuss mechanic’s liens. We will review Maryland law on mechanic’s liens and explain the process for how to go about filing a mechanic’s lien.

What is a Mechanic’s Lien?

A mechanic’s lien is a legal claim or “lien” filed by a contractor or subcontractor against a property when they haven’t been paid for work performed or materials provided during a construction or renovation project on that property. When a contractor does work on a property and doesn’t get paid for it, a mechanic’s lien gives them the ability to secure payment by placing a hold on the property.

If the property owner fails to pay the outstanding debt, the lienholder may be able to force the sale of the property to recover the money owed. Alternatively, if the owner attempts to sell the property the mechanic’s lien must be paid off as part of the sale, just like mortgage.

Maryland Mechanic’s Lien Laws

Mechanics’ liens in Maryland are governed by the Maryland Mechanic’s Lien Statute which is set forth in Title 9, Subtitle 1 of the Maryland Real Property Code. Md. Code Ann., Real Prop. §§ 9-101 et seq. This statute includes § 9-101 through § 9-114 of the Real Property Code and is covers everything from requirements for establishing a lien to enforcement and release of the lien.

The Mechanic’s Lien Statute is supplemented by Maryland Rule 12-302. Md. Rule 12-302 sets forth the procedural rules and requirements for how to file a petition and establish a lien in Maryland courts.

When Can a Contractor Get a Mechanic’s Lien

Any contractor or subcontractor who builds a new property, or performs renovation or improvement work on an existing property to the extent of 15% of the property’s value has a legal right to establish a mechanic’s lien for any unpaid amounts.

To meet the “15% of the property’s value” requirement, the contractor merely needs to show that the renovation project they did at the property increased its market value by at least 15%. In other words, it has to be a “major” renovation project like adding a new bathroom or renovating a kitchen. Contractor’s who do small projects (e.g., repairing a sink) are not eligible to claim a mechanic’s lien if they don’t get paid.

Keep in mind that the 15% is not based on what the cost of the project is, or how much the contractor is owed. The 15% is based on how much the project increases the value of the property. Here is an overly simplistic example of how this 15% requirement applies:

Jane owns a house that is worth $100,000. She hires contractor John to renovate the kitchen for a total cost of $10,000. The kitchen renovation increases value of the house from $100,000 to $150,000. If Jane fails to pay, John can get a mechanic’s lien because his project increased the value by more than 15% — even though the unpaid amount is less than 15%.

As long as the 15% requirement is met, any type of contractor is eligible to get a mechanic’s lien for any type of work, project, or materials related to any type of property improvement. This includes not just renovations or additions, but also things like swimming pools, fencing, landscaping, interior design and more.

Filing a Petition to Establish a Mechanic’s Lien

To create a mechanic’s lien in Maryland, the contractor has to get the Circuit Court to grant them the lien. To do this, the contractor first needs to file a Petition to Establish Mechanic’s Lien in the Circuit Court for the county where the property is located. So if the property is in Baltimore County, the petition needs to be filed in Baltimore County Circuit Court.   

The Mechanic’s lien petition must set forth certain things, all of which are listed in § 9-105 of the Mechanic’s Lien Statute:

1. The name and address of the contractor (petitioner) and the name and address of the property owner (respondent).
2. A description of the work or project and/or the materials supplied, when the project was done, the individual who the work was done for (if not the owner), and the amount of money that the contractor is still owed for the project.
3. A description of the land / property where the project was done. This description should include both the address, the Tax Parcel number (which can be looked up on SDAT Real Property Search), and either a formal “legal description” or an informal description of what the property includes (e.g., single family house with detached garage and fenced in yard on 1 acre lot).
4. If the petition is being filed by a subcontractor (i.e., someone who was not directly hired by the property owner) then the petition must set forth facts confirming that the subcontractor notice required under § 9-104 of the Mechanic’s Lien Statute was mailed or served on the owner.
5. The petition must also include a statement that work the contractor did on the property improved its value by 15%. This can be a simple declaratory statement or it can be a more detailed statement identifying what the property’s value was and how much the contractor improved or increased that value.

Affidavit in Support of Mechanic’s Lien Petition

When a petition to establish a mechanic’s lien is filed, all of the facts set forth in the petition MUST be supported by an affidavit. The affidavit is filed with the petition. The supporting affidavit usually comes from the contractor (petitioner) that is filing for the lien.  The supporting affidavit basically just needs to confirm that all of the facts set forth in the petition are true and correct.

Supporting Documents Must Be Filed

In addition to an affidavit, all supporting document and other evidence which establish the basis for the mechanic’s lien must also be filed with the petition. At a minimum, this should include the written contract for the project that was entered into and signed by the owner (or the general contractor). Pictures of the completed work and documents showing man hours, expenditures for materials, and other documents that help to prove that the work was done are also helpful.

If the contractor who files the petition does not have any supporting documents, they have to give an explanation in the petition and the supporting affidavit. Although it is not impossible to get a mechanic’s lien without a written contract or supporting documents, it is very difficult unless there is a reasonable explanation.

Subcontractor Notice Requirement

If the mechanic’s lien is being sought by a subcontractor (i.e., a contractor that was not directly hired by the property owner) then the subcontractor is required to serve a Notice of Intent to Lien on the owner. This additional notice requirement must be satisfied before a subcontractor can file a petition for a mechanic’s lien.

There is a standard form for the Notice of Intent to Lien that can be used for this. This completed form must be served on the property owner by hand delivery or delivered by certified mail.

Deadlines for Maryland Mechanic’s Liens

A petition to establish a mechanic’s lien must be filed within 180 days of the date that the contractor (petitioner) last worked on the project. Subcontractors must serve the required notice within 120 days.

Mechanic’s Lien Show Cause Hearings

The first step in the process is filing the mechanic’s lien petition. After the petition is filed, it will be reviewed by the court to determined whether the preliminary requirements for claiming a mechanic’s lien have been met. Once the court determines that these conditions have been satisfied, and the required documentation has been submitted, the court will then issue a “show cause order” and set a hearing date.

The show cause order in a mechanic’s lien action is an order that instructs the owner of the property to file a response or answer to the mechanic’s lien petition, and then to appear in court for hearing to “show cause” why the mechanic’s lien should not be granted. A writ of summons instructing the property owner to appear for the court hearing is also issued along with the show cause order. Once issued, the plaintiff needs to have the order, summons, and copy of the petition served on the property owner. Service is effected by personal delivery (just like the summons for a new civil case). When the plaintiff completes service, they need to file an affidavit of service.

The show cause hearing is typically scheduled about 6 weeks after the date that the show cause order is issued. The plaintiff must appear for the show cause hearing regardless of whether the property owner (defendant) files any response to the petition or appears for the hearing themselves. At the hearing, the plaintiff has the burden of presenting evidence to support their claim for the mechanic’s lien. This can be done through witness testimony and introducing documents into evidence. Evidence can include the unpaid invoices, evidence of payments to subcontractors, etc.

Contact Us About Maryland’s Mechanic’s Liens

Contact our Maryland real estate lawyers for help filing for a mechanic’s lien.