VA - Creditor's Rights - Mechanic's Liens
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attach by operation of law when a contract is made and work is done/materials furnished
Mechanic's Lien on personal property
for a person’s improving the property at the owner’s request. It’s created either by owner’s request (limited to just and reasonable charges) or request of a non-owner in lawful possession/lessee (limited to $800). A mechanic’s lien is enforced through self help (debts not paid within 10 days and value < 7500) where lienor sells property at publicly advertised public auction or through petition to GDC (7500 < debt < 15000)/CC (15000 < debt) with notice to D and the sheriff sells it
Mechanic's and Materialmen's Lien on Real Property
lien attaches to real property for a person’s labor or materials that improve a building. A GC perfects a MML by filing a memorandum of a mechanic’s lien within 90 days of ending work setting forth owner’s name, verified amount of the claim, intent to claim a lien, and a description of the property. In addition to the above, a SubContractor must give written notice to the owner of the amount and character of his claim and notice to the GeneralContractor. The SC’s lien is limited to the amount owner owes to GC at the time of SC’s notice. The SC can also piggyback the GC’s lien by giving notice to the owner before owner pays GC. To enforce a MML, the GC/SC must bring a suit in equity within 6 months of recording the memorandum of mechanic’s lien or 60 days of completing the work, whichever’s later. Failure to bring suit within this time extinguishes the lien. MMLs take priority over subsequent other liens and are limited to the value of the land, not including the building. Those providing labor/materials to SCs have priority over SCs, who have priority over GCs (manual laborers > materialmen > SC > GC).
Property not Subject to ML and MML
- public/government buildings
- leased property where lessee orders repairs
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