June 21, 2010
Effective July 1, 2010, the requirements that apply to mechanics’ liens on one and two family residential dwelling units will change in Virginia. One and two family residences are the only types of projects for which Virginia requires notification by the lien claimant prior to or shortly after the commencement of work in order to have a valid mechanics’ lien. In order to have a valid lien, a person seeking to claim a lien on such property must notify the mechanics’ lien agent at the commencement of work that he seeks payment for labor performed or materials furnished. The notice must be in writing and delivered by registered or certified mail, or physical delivery, within 30 days of the first date the claimant performs labor or furnishes material. If the claimant fails to give notice within the appropriate 30 day period, his lien is only valid as to work performed or materials furnished on or after the date that notice is ultimately given to the mechanics’ lien agent.
Under the current law, this pre-work notification only has to be given if at the time of issuance the building permit contains the name, mailing address and telephone number of the person designated as the mechanics’ lien agent. Effective July 1, 2010, the owner or lender has more flexibility in the naming the mechanics’ lien agent. The mechanics’ lien agent’s consent to act as mechanics’ lien agent no longer has to be in writing. The name, mailing address and telephone number of the mechanics’ lien agent is no longer required to be on the building permit at the time it is issued. The party obtaining the building permit is allowed to amend the permit to name a mechanics’ lien agent or to change the mechanics’ lien agent at any time.
The lien claimant’s notice must be now given to the mechanics’ lien agent “then named on the permit or amended permit”. (Senate Bill 105).
John S. Morris, III, Esquire (Contributing Author)
Beale, Davidson, Etherington & Morris, P.C.
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