Filing a mechanic’s or materialmen’s lien is often the best way contractors, subcontractors, and material suppliers can ensure payment for their work or materials when disputes or payment issues arise. However, Arkansas law sets out precise steps, deadlines, and requirements that must be followed to properly and legally file a lien in the state.
Missing even a small step could cost you your lien rights. Here’s what you need to know to get it right.
Who Has Lien Rights in Arkansas?
Under Arkansas law, any individual or business who provides labor, services, or materials used in the construction, repair, or improvement of any building or property has lien rights. This includes:
- General contractors
- Subcontractors
- Material suppliers
- Engineers, architects, and surveyors
However, material suppliers have an additional burden in Arkansas. They must prove that the materials they provided were actually used in the project. Therefore, material tracking and documentation are critical for suppliers.
What Notices Are Required Before Filing a Lien in Arkansas?
Before filing a lien, Arkansas law requires specific notices to be sent to protect lien rights.
For Residential Projects
If your work involves a residential project of four units or fewer, preliminary notice is required under Ark. Code Ann. § 18-44-115(e). Contractors, subcontractors, and material suppliers must notify the property owner in writing that they are providing labor or materials that could result in a lien if not paid. This notice should be sent within 10 days of beginning work or delivering materials.
If no preliminary notice is sent, you may lose your right to file a lien on the property.
For Commercial Projects
Material suppliers involved in commercial projects must also send a preliminary notice under Ark. Code Ann. § 18-44-115(b). This notice must be delivered by certified mail to the property owner within 75 days of providing the materials. The notice should explicitly state that failure to pay for the materials could result in a lien against the property.
When and How Should You Send a Notice Before Filing a Lien?
Arkansas also requires a notice of intent to file a lien before the lien itself can be filed. Under Ark. Code Ann. § 18-44-114, contractors, subcontractors, and suppliers must send this notice at least 10 days prior to filing the lien. The notice must inform the property owner that a lien will be filed if payment is not made. Send this notice via certified mail to ensure proof of delivery.
What Is the Deadline for Filing a Lien in Arkansas?
The timeline to file a lien in Arkansas is strict. According to Ark. Code Ann. § 18-44-117, liens must be filed within 120 days of the last day labor was performed or materials were supplied. Missing this deadline will result in the loss of your lien rights.
Where Do You File a Lien in Arkansas?
Liens in Arkansas must be filed with the circuit clerk in the county where the property is located. When filing the lien, include the following details:
- Your name and contact information
- A description of the labor or materials provided
- The amount owed to you
- A legal description of the property
Double-check your filing documents to avoid errors that could invalidate the lien.
How Long Does a Lien Remain Valid in Arkansas?
Once properly filed, a lien in Arkansas is valid for 15 months. After this period, the lien will expire unless you file a lawsuit to enforce it. If legal action is necessary, you must file suit within the 15-month timeframe to preserve your lien rights.
Can You Recover Attorney Fees in Arkansas?
If you need to file a lawsuit to enforce your lien, Arkansas law does provide for the recovery of attorney fees. Under Ark. Code Ann. § 16-22-308, courts have the discretion to award reasonable attorney fees to the prevailing party in an action to enforce a lien. This can help offset some of the costs associated with pursuing payment through legal action.
However, keep in mind that the court’s decision to award attorney fees is not guaranteed and will depend on the specifics of your case.
Key Takeaways
Navigating the lien process in Arkansas requires careful attention to detail and strict adherence to the state’s laws and deadlines. To summarize:
1. Notice Requirements:
- Send the required preliminary notices for residential and commercial projects.
- Deliver a notice of intent at least 10 days before filing the lien.
2. Deadlines:
- File your lien within 120 days of completing work or supplying materials.
- File a lawsuit to enforce your lien within 15 months if necessary.
3. Proof for Material Suppliers:
- Suppliers must prove their materials were actually used in the project.
4. Attorney Fees:
- Courts may award attorney fees to the prevailing party in lien enforcement cases.
By following these steps and maintaining clear documentation, you can protect your right to payment and ensure your lien stands up to legal scrutiny. If you’re unsure about any part of the lien process, consult an experienced construction attorney to ensure compliance with Arkansas lien laws.
Need Help Filing Your Lien?
Protecting your payment rights starts with following the right steps. If you have further questions or need legal assistance filing your lien, don’t hesitate to give us a call at 713-715-7443.
