In 1996, Massachusetts radically changed the mechanic's lien law. Among other things, the new lien law changes recording and filing deadlines and expands who can use the lien.

However, the new law also makes it harder for you to collect your money by complicating timing deadlines. It requires pooling of assets with other lien creditors upon bank foreclosure and gives banks even more leverage. Despite the many faults of the new lien law, you should still use it to help protect yourself from deadbeatitis.

In its April 13, 1998 issue, National Home Center New's PRODEALERS addressed the new lien law stating:

WHEN MASSACHUSETTS CHANGED ITS COLLECTIONS law a year ago, it became more difficult for lumberyards to collect from slow-paying contractors and subs. Some of the new laws, including California's, give greater leverage to compel contractors to pay up. Others, like Massachusetts' make it tougher to do so. But credit-collections experts say dealers would do well to stay current in their knowledge of local laws if they want to harness all other means at their disposal to collect what they're owed. (Reprinted with permission of National Home Center News)

Citing Attorney Alan M. Cohen, the article highlights some problems created by the current lien law and some proposed solutions.

Helpful hints:

1. Don't be lulled by the longer deadlines. File your Notice of Contract at the start of the job. Early filing and notification to the property owner is fairer to the owner. It also gives your customer that additional incentive it may need to pay you timely, instead of taking your money to pay your competitors or other trade debts.
2. Don't ignore other collection remedies. I aggressively pursue, where appropriate, ex parte trustee and real estate attachments and reach and apply injunctions. After all, it is your money.

MECHANIC'S LIENS LAW CHANGES

A Nuts and Bolts Summary

I. CONTRACT DIRECT WITH OWNER

If you have a written contract directly with the Owner of the property, then you must timely :

1. Record your Notice of Contract at the appropriate Registry of Deeds ("Registry") at any time after the signing of the written contract by you and the Owner, before or after the completion date, regardless whether you finished the work in the written contract.
2. Record your Statement of Account at the Registry.

II. CONTRACT WITH GENERAL CONTRACTOR ("G. C.")

If you have a written contract with a person who has a written contract with the Owner of the property, then you must timely:

1. Record your Notice of Contract at the appropriate Registry at any time after the signing of the written contract, before or after the completion date stated in your written contract, regardless whether you finished the work in the written contract.

   You must mail the Owner a copy of your Notice of Contract by certified mail return receipt requested. You should also send a copy to the General Contractor by certified mail.

2. Record your Statement of Account at the Registry.

You should also send the Owner and General Contractor a copy of the Statement of Account by certified mail.

III. CONTRACT WITH SUB CONTRACTOR

If you are a Sub Sub Contractor with a written contract with the Sub Contractor, then you must:

1. Within 30 days after you start work, mail a "Notice of Identification" to the G. C. by certified mail return receipt requested. I recommend that you also mail a copy to the Owner and the Sub Contractor.
2. Record your Notice of Contract at the appropriate Registry at any time after the signing of the written contract, before or after the completion date stated in your written contract, regardless whether you finished the work in the written contract.

   Upon recording the Notice of Contract, you must mail a copy of the Notice of Contract to the Owner, by certified mail, return receipt requested. You should also give notice to the Sub and General Contractor.

3. Record your Statement of Account at the appropriate Registry of Deeds and send a copy by certified mail return receipt requested to the Owner, G. C. and sub contractor.

In each of these above three instances (1, 2 and 3), to perfect your lien:

1. Within the time set forth in the statute you must sue in the appropriate court.
2. Within 30 days after you sued, you must record an attested to copy of the Complaint at the Registry.

Although complicated, when properly used, mechanic's liens can help you get paid for your product, service, or equipment. For more detailed information as to the very rigid time schedules and criteria necessary to use this most effective tool in establishing an involuntary security interest, call Attorney Cohen at 508 620-6900 or email him at amc.law@verizon.net.

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