If contractors and suppliers don’t get paid on a construction project in Tennessee, they can file a mechanics lien to secure payment. A mechanics lien is a legal tool that provides the unpaid party with a security interest in the property. This page breaks down the rules, requirements, and deadlines you need to follow to file a Tennessee mechanics lien.
“Levelset takes something that is pretty complex and makes it easy.”
Notice to Owner prior to commencing work.
A lien enforcement action must be filed within 1 year of last furnishing labor and/or materials.
There's more to it than that, though. See details below.
Enforcement deadlinesIn Tennessee, a contractor with a direct contract with the property owner must initiate a lawsuit to enforce a mechanics lien within 1 year after the completion of the work.
However, the period may be shortened to 60 days if the property owner serves the lien claimant a written demand for enforcement of the lien.
Preliminary notice deadlinesNotice of Non-Payment must be provided to the owner within 90 days of last day of the month labor and materials provided. For example, if labor was provided on April 3, then notice is provided 90 days from April 30. Separate notices are required for each month unpaid services or materials are provided.
Generally, a lien must be filed within 90 days of the completion of the work or improvement.
Enforcement deadlinesAll lien claimants without a direct contract with the property owner must initiate an action to enforce their lien within 90 days of the lien’s filing.
However, the period may be shortened to 60 days from receipt of a demand from the property owner for enforcement of the lien.
Preliminary notice deadlinesIf supplying to the owner, the same notice requirements apply as for the prime contractor. Otherwise, the same notice requirements as for a subcontractor.
Generally, a lien must be filed within 90 days of the completion of the work or improvement.
Enforcement deadlinesParties with a direct contract with the property owner must initiate a lawsuit to enforce a mechanics lien within 1 year after the completion of the work.
Parties without a direct contract with the property owner must initiate an action to enforce their lien within 90 days of the lien’s filing.
However, either period may be shortened to 60 days from receipt of a demand from the property owner for enforcement of the lien.
TopicHere are some frequently asked questions about Tennessee mechanics liens, with answers written by construction attorneys and payment experts.
In Tennessee, the parties entitled to mechanics lien protection depend on the project type.
Generally, Tennessee lien rights are expansive and include contractors, subcontractors, laborers, equipment, and material suppliers to any tier. Design professionals such as surveyors, architects, and engineers all have lien rights as long as they contracted with the property owner.
On an owner-occupied residential property of between 1 to 4 units, only the prime contractor (and/or those contracting directly with the owner) has lien rights. If the owner is acting as his own prime contractor on a project on a single-family residential property, laborers and suppliers contracting with the prime contractor and “1st tier subs” have lien rights. Design professionals do not have lien rights on these types of projects.
What’s more, note that Tennessee specially fabricated material providers have pretty strong lien rights as well – even if the materials might not make it to the job site.
No, although it’s never a good idea to work on a project without a written contract, one is not required to be able to file a mechanics lien in Tennessee.
It depends. For projects involving single-family, residential construction, home improvement contractors are required to be licensed, and may not file a valid mechanics lien unless they are so licensed. For all other projects, there is no specific licensing requirement. However, it is never advisable to perform work that requires a license if unlicensed.
Tennessee residential contractors: Keep in mind that there are new continuing education requirements, beginning January 1, 2020. More on those here: Tennessee Residential Contractors Must Now Continue Education.
In Tennessee, a general contractor has no technical requirement to record or file a mechanics lien statement in order to preserve his lien rights; he must merely file suit to enforce his lien within 1 year from the last date of furnishing labor and/or materials to the project.
However, this is generally not a good idea as the general contractor’s rights may be cut off by third parties prior to initiating the lawsuit if a lien statement (or the contract itself) is not recorded. The best and customary way for the general contractor to secure his lien rights is to record his Notice of Lien and Sworn Statement as would a remote contractor. This means the same 90-day rule applicable to remote contractors also applies to general contractors to protect lien rights against 3 rd parties.
A party other than the general contractor who has lien rights must record their lien within 90 days after the completion or abandonment of the project in order to protect their rights as concerned to subsequent purchasers or encumbrances.
Note, however, that these deadlines may be shortened if a Notice of Completion has been filed and served.
The following paragraphs outline the time lien claimants have to file:
General Contractors
• Residential (Notice of Completion Recorded and Served): Lien and response to Notice of Completion required within 10 days of date on which Notice of Completion filed.
• Residential (Notice of Completion NOT simultaneously recorded and served): Lien and response (if applicable) required within 90 days of actual completion of project.
• Commercial (Notice of Completion Recorded and Served): Lien and response to Notice of Completion required within 30 days of date on which Notice of Completion filed.
• Commercial (Notice of Completion NOT simultaneously recorded and served): Lien and response (if applicable) required within 90 days of actual completion of project.
Subcontractors
• Residential: No mechanics liens allowed.
• Commercial (Notice of Completion Recorded and Served): Lien and response to Notice of Completion required within 30 days of date on which Notice of Completion filed.
• Commercial (Notice of Completion NOT simultaneously recorded and served): Lien and response (if applicable) required within 90 days of actual completion of project.
A Tennessee Notice of Lien must be in substantially the same form as provided under Tenn. Code §66-11-112(d) and include the following information:
• Claimant’s information;
• Owner’s information;
• Hiring party’s information (and role);
• First date of furnishing labor and/or materials;
• Last date of furnishing labor and/or materials;
• Lien amount; &
• Property description.
Tennessee mechanics liens only require a “reasonably certain description of the real property.” So, although a full legal property description isn’t specifically required, the more accurate the description the better,
Tennessee mechanics lien law states that “a lien arising under this chapter shall not include in the lien amount any interest, service charges, late fees, attorney fees, or other amounts to which the lienor may be entitled by contract or law that do not result in an improvement to the real property.”
However, it is provided that “the recording party shall pay filing fees, and shall be provided a receipt for the filing fees, which amount shall be part of the lien amount.” So, the only extra amount provided for by the lien statutes in Tennessee is the cost of filing the lien at the recorder’s office.
Yes, Tennessee law requires that a mechanics lien must be notarized to be valid and accepted for recording.
Tennessee mechanics lien claims are documents recorded with the county Register of Deeds office. For your mechanics lien to be valid, you must record it in the county where the job is physically located.
Tennessee counties each have their own unique rules and requirements. To help you, we’ve assembled a list of all the Register of Deeds offices in Tennessee that file mechanics liens,. These pages will walk you through the county’s specific formatting requirements, deadlines, and fees.
There are a lot of questions on this page about who can file a Tennessee mechanics lien, when it must be filed, what types of rules apply, and more. But you may be wondering something much more practical: how do I actually get my mechanics lien recorded and filed?
• For a full breakdown of this process, you may want to consult: How to File a Tennessee Mechanics Lien | A Step-by-Step Guide
Yes, notice is required in Tennessee. As well as recording the Notice of Lien and Sworn Statement with the Register of Deeds in the county in which the property is located, the lien must also be given to the property owner. This may be accomplished by registered or certified mail, return receipt requested, and must be done within the same 90-day timeframe as the filing deadline.
Note that for remote contractors (those who do not have a contract with the owner), a copy of the lien must be served on the owner prior to the lien filing deadline.
To the extent that lien rights are available, a lien may be filed on a condominium project.
If the improvements were contracted for by the condo association, the lien attaches to all units in the common interest, unless the association notifies the lienor at the time of the contract that a lien may only attach to the individual unit(s) that were benefited from the improvement.
In Tennessee, the deadline to enforce a mechanics lien, depends on the claimant’s role on the project.
• Direct contractors (those who were hired by the property owner) must initiate an enforcement lawsuit within 1 year after the completion of the work. However, if the lien claimant is served with a written demand for enforcement of the lien by the property owner, the lien claimant must initiate the foreclosure action within 60 days of receipt of the written demand.
• All other lien claimants without a direct contract with the property owner must initiate an action to enforce their lien within 90 days of the lien’s filing. However, the period may be shortened to 60 days if the property owner serves the lien claimant a written demand for enforcement of the lien.
No, Tennessee is considered an unpaid balance lien state, meaning that a subcontractor or supplier’s lien claim will be limited to the amount still owed to the GC at the time of filing.
It depends. In Tennessee, a mechanics lien may have priority over a mortgagee of the project if the lien claimant provided the mortgagee with written notice sent by certified or registered mail prior to the lien claimant’s first furnishing of labor and/or materials to the project, and the mortgagee either consents or does not object within 10 days after receipt of the notice. The mortgagee’s objection must be by certified or registered mail. If this notice is not sent, and/or the mortgagee properly objects, the mechanics lien will not have priority over the mortgage.
As to competing mechanics liens, all mechanics liens, with the exception of liens of laborers, are of equal priority and would share pro-rata in the proceeds of a sale of the property if the proceeds are not enough to pay all liens in full. The liens of laborers have priority over other mechanics liens.
Tennessee lien law provides that when a mechanics lien is forfeited, expired, or satisfied, the lien claimant must file a lien release of Lien with the Register of Deeds in the county in which the property is located. Failure to do so within 30 days after receipt of a written demand of such release will result in the lien claimant being held liable for the damages and costs arising therefrom, including reasonable attorney’s fees.
Please contact me 615-369-3350 to discuss.
Answered by Beau Hammet | https://www.levelset.com/payment-help/question/can-i-file-a-lien-on-stored-matierals-in-tennessee/Thank you for reaching out to the Levelset legal community. If you are in need of specific advice for a current legal situation, you may want to consider reaching out to a licensed attorney in your state directly at their office. This forum is public, so it may not be the right place to discuss a sensitive legal issue. Levelset provides a list of attorneys in each state here: https://www.levelset.com/payment-help/experts/experts-by-state/ . From that directory you may find a law firm in your area to call privately.
Answered by Julie Gelderblom | Levelset Admin https://www.levelset.com/payment-help/question/how-to-protect-against-lien/This is a complex question. Please call me at 615-369-3350 to discuss off line.
Answered by Beau Hammet |Contractors & suppliers have strong lien rights in Tennessee. If a contractor or supplier isn’t paid on an Tennessee job, they can turn to filing a lien to speed up payment and protect themselves. However, there are specific requirements and rules that must be followed. Here are 5 essential things you need to know about Tennessee’s mechanics lien law.
Eligibility to file a lien in Tennessee depends on the project type. On most projects (the exception being 1-4 unit residential owner-occupied buildings), pretty much everyone that participates in construction has lien rights. This includes contractors, subcontractors, suppliers, laborers, surveyors, architects, and engineers.
Where a residential owner-occupied building (1-4 units) is concerned, only the primary contractor, and/or other parties contracting directly with the owner, have lien rights. In the event that the owner is acting as the prime contractor on a single-family residence, the owner-prime’s suppliers, laborers, and 1st-tier subs have lien rights. For all residential projects, contractors are required to be licensed in order to file a lien.
Tennessee has interesting notice requirements.
General contractors are required to furnish a “Notice to Owner” prior to commencing work on the project. In the case of owner-occupied residential projects (of 1-4 units), the notice must actually be built into the contract between the general contractor and the owner.
Subcontractors, suppliers, and all other parties must deliver their notice within 90 days of the last day of each month in which labor and/or materials were provided but remain unpaid.
In all cases, notice is sent via certified mail return receipt requested to preserve rights. A lien is not valid without a timely notice.
The mechanics lien deadline rules in Tennessee are a bit convoluted, especially when you start to consider all of the possible circumstantial variations. Let’s start by looking at the basics.
Generally speaking, a general contractor has no technical requirement to record or file a mechanic’s lien statement in order to preserve his lien rights; he must merely file suit to enforce his lien within 1 year from the last date of furnishing labor and/or materials to the project. This is generally not a good idea, however, as the effectiveness of the lien can be cut-off by third parties. The customary way to avoid this is for a general contractor to record the mechanics lien statement as would any other potential lien claimant. To effectively secure lien rights the lien must be filed within 90 days from completion of the project. The same 90-day period (from completion or abandonment of the project) in which to file a mechanics lien applies to all others, as well.
As above-mentioned, however, these timelines can be amended by circumstance. Here is what happens if a Notices of Completion is filed and served on the project:
The following paragraphs outline the time lien claimants have to file:
– Residential (Notice of Completion Recorded and Served): Lien and response to Notice of Completion required within 10 days of date on which Notice of Completion filed.
– Residential (Notice of Completion NOT simultaneously recorded and served): Lien and response (if applicable) required within 90 days of actual completion of project.
– Commercial (Notice of Completion Recorded and Served): Lien and response to Notice of Completion required within 30 days of date on which Notice of Completion filed.
– Commercial (Notice of Completion NOT simultaneously recorded and served): Lien and response (if applicable) required within 90 days of actual completion of project.
– Residential: No mechanic’s liens allowed [unless the owner and general contractor are the same].
– Commercial (Notice of Completion Recorded and Served): Lien and response to Notice of Completion required within 30 days of the date on which Notice of Completion filed.
– Commercial (Notice of Completion NOT simultaneously recorded and served): Lien and response (if applicable) required within 90 days of actual completion of the project.
Don’t forget: all mechanics’ liens must be notarized in the state of Tennessee!
Mechanics liens of laborers have first priority in Tennessee as against competing mechanics liens. All other mechanic’s liens are of equal priority, and share pro rata in the proceeds of a sale of the property if the proceeds are insufficient to pay the liens in full.
Mechanics liens may have priority over a pre-existing mortgage, provided certain requirements are met. If the property is mortgaged, a mechanic’s lien may have priority if the contractor provides a written notice sent by certified or registered mail prior to beginning the project. The mortgagee must respond within 10 days (by certified or registered mail), otherwise, the mechanic’s lien has priority.
A mechanics lien in the state of Tennessee does not include interest, service charges, late fees, attorney fees, or any other amount that does not result in the actual improvement of a property. However, the cost of filing at the recorders office can be included in the lien amount.
In our step-by-step guide, we will walk you through each step required to qualify for and file a Tennessee mechanics lien. This guide explains the notices you need to send, the information required on the Tennessee mechanics lien form, and essential tips about delivering it to the county office for recording.
Download a blank Tennessee Notice of Lien form. Our free forms were created by construction attorneys to meet the requirements in Tennessee mechanics lien laws. The state statutes are very specific about the language and formatting required in a Notice of Lien document. We make it easy to get this part right.
Filling out the form can be tricky because Tennessee mechanics lien law is strict about the details and information you need to include. Making a mistake on the lien form could invalidate your claim entirely. All of the information must be 100% accurate, including the legal names of each party, the property description, and the claim amount. Review every detail carefully.
Record your completed form, along with a sworn statement for the lien amount , with the register of deed’s office in the Tennessee county where the property is located, and pay the recording fee. View a full list of Tennessee register’s offices to find contact information, fees, and filing requirements.
After your lien claim is recorded, you’ll need to serve notice on the property owner. You can do this via registered mail or certified mail, return receipt requested. This must be done prior to the lien filing deadline.
For parties directly contracted with the owner, the Tennessee mechanics lien is valid for 1 year after work is completed. For indirect lien claimants, the claim is valid for 90 days. In other words, you will need to enforce your lien claim within this deadline.
If you get paid, it’s a good idea to file a lien release form to discharge your lien claim.
The provisions of the Tennessee mechanics lien statute that permit the filing of mechanics liens and materialman’s liens on construction projects can be found in Tennessee’s Mechanics’ Lien Law, T.C.A. § 66-11-101 et. seq. The full text of the Tennessee Mechanics Lien Law is provided below. Updated as of May 2023.
As used in this chapter, unless the context otherwise requires:
(1) “Contract” means an agreement for improving real property, written or unwritten, express or implied, and includes extras as defined in this section;
(2) “Contract price” means the amount agreed upon by the contracting parties to be paid for performing work or labor or for furnishing materials, machinery, equipment, services, overhead and profit, included in the contract, increased or diminished by the price of extras or breach of contract, including defects in workmanship or materials. If no price is agreed upon by the contracting parties, “contract price” means the reasonable value of all work, labor, materials, services, equipment, machinery, overhead and profit included in the contract;
(3) “Extras” means labor, materials, services, equipment, machinery, overhead and profit, for improving real property, authorized by the owner and not included in previous contracts;
(A) “Furnish materials” means:
(i) To supply materials that are intended to be and are incorporated in the improvement;
(ii) To supply materials that are intended to be and are delivered to the site of the improvement and become normal wastage in construction operations;
(iii) To specially fabricate materials for incorporation in the improvement and, if not delivered to the site of the improvement, are not readily resalable by the lienor;
(iv) To supply materials that are used for the construction and do not remain in the improvement, subject to diminution by the salvage value of such material; or
(v) To supply tools, equipment, or machinery as permitted by § 66-11-102(g);
(B) The delivery of materials to the site of the improvement shall be prima facie evidence of incorporation of such materials in the improvement;
(5) “Improvement” means the result of any action or any activity in furtherance of constructing, erecting, altering, repairing, demolishing, removing, or furnishing materials or labor for any building, structure, appurtenance to the building or structure, fixture, bridge, driveway, private roadway, sidewalk, walkway, wharf, sewer, utility, watering system, or other similar enhancement, or any part thereof, on, connected with, or beneath the surface; the drilling and finishing of a well, other than a well for gas or oil; the furnishing of any work and labor relating to the placement of tile for the drainage of any lot or land; the excavation, cleanup, or removal of hazardous and nonhazardous material or waste from real property; the enhancement or embellishment of real property by seeding, sodding, or the planting on real property of any shrubs, trees, plants, vines, small fruits, flowers, nursery stock, or vegetation or decorative materials of any kind; the taking down, cleanup, or removal of any existing shrubs, trees, plants, vines, small fruits, flowers, nursery stock, or vegetation or decorative materials of any kind then existing; excavating, grading or filling to establish a grade; the work of land surveying, as defined in § 62-18-102, and the performance of architectural or engineering work, as defined in title 62, chapter 2, with respect to an improvement actually made to the real estate. As the context requires, “improvement” also means the real property thus improved;
(6) “Laborer” means any individual who, under contract, of any degree of remoteness, personally performs labor for improving real property on the site of the improvement;
(7) “Lienor” means any person having a lien or right of lien on real property by virtue of this chapter, and includes the person’s successor in interest;
(8) “Owner” includes the owner in fee of real property, or of a less estate in real property, a lessee for a term of years, a vendee in possession under a contract for the purchase of real property, and any person having any right, title or interest, legal or equitable, in real property, that may be sold under process;
(9) “Owner-occupant” means any owner of real property who, at the time the owner contracts for the improvement of the real property, occupies the real property as the owner’s principal place of residence;
(10) “Perform”, when used in connection with the words labor or services, means performance by the lienor or by another for the lienor;
(11) “Person” means an individual, corporation, limited liability company, partnership, limited partnership, sole proprietorship, joint venture, association, trust, estate, or other legal or commercial entity;
(12) “Prime contractor” means a person, including a land surveyor as defined in § 62-18-102, a person licensed to practice architecture or engineering under title 62, chapter 2, and any person other than a remote contractor who supervises or performs work or labor or who furnishes material, services, equipment, or machinery in furtherance of any improvement; provided, that the person is in direct privity of contract with an owner, or the owner’s agent, of the improvement. A “prime contractor” also includes a person who takes over from a prime contractor the entire remaining work under such a contract;
(13) “Real property” includes real estate, lands, tenements and hereditaments, corporeal and incorporeal, and fixtures and improvements thereon;
(14) “Remote contractor” means a person, including a land surveyor as defined in § 62-18-102 and a person licensed to practice architecture or engineering under title 62, chapter 2, who provides work or labor or who furnishes material, services, equipment or machinery in furtherance of any improvement under a contract with a person other than an owner;
(15) “Single family residence” means any real property owned and occupied by no one other than the owner and the owner’s immediate family; and
(16) “Visible commencement of operations” means the first actual work of improving upon the land or the first delivery to the site of the improvement of materials, that remain on the land until actually incorporated in the improvement, of such manifest and substantial character as to notify interested persons that an improvement is being made or is about to be made on the land, excluding, however, demolition, surveying, excavating, clearing, filling or grading, placement of sewer or drainage lines or other utility lines or work preparatory therefor, erection of temporary security fencing and the delivery of materials therefor.
(a) There shall be a lien on any lot or tract of real property upon which an improvement has been made by a prime contractor or any remote contractor; provided, that the lienor has complied with title 62, chapter 6. If the lienor has not fully complied with title 62, chapter 6, no lien is established by this chapter. The lien shall secure the contract price.
(b) The lien established by this section shall include a lien on any lot or tract of real property in favor of any land surveyor who has, by contract with the owner or agent of the owner of the real property, performed on the property the practice of land surveying, as defined in § 62-18-102. The lien shall secure the contract price.
(1) The lien established by this section shall include a lien on any lot or tract of real property upon which an improvement has been made, by contract with the owner or the owner’s agent, in favor of any person licensed to practice architecture or engineering under title 62, chapter 2, for architectural or engineering services performed with respect to the improvement actually made. The lien shall secure the contract price.
(2) The lien provided for in subdivision (c)(1) shall attach as of the time of visible commencement of operations as provided in § 66-11-104.
(3) This subsection (c) shall not apply to owner-occupants of one-family or two-family detached unit homes.
(d) Notwithstanding any other provision of this chapter, no prime contractor or remote contractor of a lessee of real property may encumber the fee estate unless the lessee is deemed to be the fee owner’s agent. In determining whether a lessee is the fee owner’s agent, the court shall determine whether the fee owner has the right to control the conduct of the lessee with respect to the improvement and shall consider:
(1) Whether the lease requires the lessee to construct a specific improvement on the fee owner’s property;
(2) Whether the cost of the improvement actually is borne by the fee owner through corresponding offsets in the amount of rent the lessee pays;
(3) Whether the fee owner maintains control over the improvement; and
(4) Whether the improvement becomes the property of the fee owner at the end of the lease.
(e) A lien arising under this chapter shall not include in the lien amount any interest, service charges, late fees, attorney fees, or other amounts to which the lienor may be entitled by contract or law that do not result in an improvement to the real property or are otherwise not permitted by this chapter.
(f) When a lienor, without default, is prevented from completely performing the lienor’s part, the lienor is entitled to a lien for as much of the contract price as the lienor has performed in proportion to the contract price for the whole, and the lienor’s claim shall be adjusted accordingly.
(g) A lien for furnishing tools, equipment, or machinery arises under this chapter to the following extent:
(1) For the reasonable rental value for the period of actual use and any reasonable period of nonuse taken into account in the rental contract; except that the reasonable rental value and reasonable periods of use and nonuse need not be determined solely by the contract; or
(2) For the purchase price of the tools, equipment or machinery, but the lien for the price only arises if the tools, equipment or machinery were purchased for use in the course of the particular improvement and have no substantial value to the lienor after the completion of the improvement on which they were used.
When the contract for improving real property is made with a husband or a wife who is not separated and living apart from that person’s spouse, and the property is owned by the other spouse or by both spouses, the spouse who is the contracting party shall be deemed to be the agent of the other spouse unless the other spouse serves the prime contractor with written notice of that spouse’s objection to the contract within ten (10) days after learning of the contract.
(a) The lien provided by this chapter shall attach and take effect from the time of the visible commencement of operations, excluding however, demolition, surveying, excavating, clearing, filling or grading, placement of sewer or drainage lines, or other utility lines or work preparatory therefor, erection of temporary security fencing and the delivery of materials therefor.
(b) If there is a cessation of all operations at the site of the improvement for more than ninety (90) days and a subsequent visible resumption of operations, any lien for labor performed or for materials furnished after the visible resumption of operations shall attach and take effect only from the visible resumption of operations.
(c) Nothing in this section shall affect the priority or parity of any liens as established by any section of this chapter.
(a) The lien shall extend to, and only to, the owner’s right, title or interest in the real property and improvements on the real property existing at the time of the visible commencement of operations or thereafter acquired or constructed.
(b) If any part of the real property or improvements subject to the lien is removed by the owner or any other person at any time before discharge of the lien, the removal shall not affect the rights of the lienor either in respect to the real property and improvements or the part so removed.
A prime contractor’s lien shall continue for one (1) year after the date the improvement is complete or is abandoned, and until the final decision of any suit properly brought within that time for its enforcement.
All liens provided by this chapter, except those of laborers, shall be on a parity, and shall be treated pro rata. All liens of laborers shall be on a parity one with another, and shall have priority over all other liens created by this chapter.
If the contract for an improvement is made with a mortgagor, and the lienor has served the mortgagee with written notice of the same by certified or registered mail before the work is begun or materials furnished by the lienor, and the mortgagee gives written consent thereto by certified or registered mail, the lien provided by this chapter to that lienor shall have priority over the mortgage; and if the mortgagee fails to serve a written objection by certified or registered mail within ten (10) days after receipt of the notice, the mortgagee’s consent shall be implied; provided, that the person giving notice shall include a name and return address to which the written objection shall be served. If notice is not served in accordance with this section, then the lien shall not have priority over a mortgage otherwise entitled to priority over the lien under applicable law.
Section 66-11-108 shall also apply to any other person claiming a lien not created by this chapter.
A judgment lien of record shall not defeat a lien provided by this chapter, if the lien provided by this chapter is fixed on the real property in good faith and without collusion.
Where the lienor’s contract is in writing, and has been acknowledged, or in lieu of acknowledgment is sworn to by the prime contractor as to its execution by the owner, it may be recorded in the lien book in the register of deeds of the county where the real property, or any part of the affected real property, lies. Subsequent purchasers or encumbrancers for value shall be deemed to have notice of the lien so long as the recorded contract sets forth the contract price and describes the real property with reasonable certainty.
(a) In order to preserve the priority of the lien provided by this chapter as of the date of its attachment, as concerns subsequent purchasers or encumbrancers for a valuable consideration without notice of the lien, though not as concerns the owner, the lienor, who has not recorded the lienor’s contract pursuant to § 66-11-111, is required to record in the office of the register of deeds of the county where the real property, or any part affected, lies, a sworn statement of the amount for, and a reasonably certain description of the real property on, which the lien is claimed. The recording party shall pay filing fees, and shall be provided a receipt for the filing fees, which amount shall be part of the lien amount. Recordation is required to be done no later than ninety (90) days after the date the improvement is complete or is abandoned, prior to which time the lien shall be effective as against the purchasers or encumbrancers without the recordation. The owner shall serve thirty (30) days’ notice on prime contractors and on all of those lienors who have served notice in accordance with § 66-11-145 prior to the owner’s transfer of any interest to a subsequent purchaser or encumbrancer for a valuable consideration. If the sworn statement is not recorded within that time, the lien’s priority as to subsequent purchasers or encumbrancers shall be determined as if it attached as of the time the sworn statement is recorded.
(b) A building, structure or improvement shall be deemed to have been abandoned for purposes of this chapter when there is a cessation of operation for a period of ninety (90) days and an intent on the part of the owner or prime contractor to cease operations permanently, or at least for an indefinite period.
(c) Any other provision to the contrary notwithstanding, any lien acquired under contract executed on or after April 17, 1972, by virtue of § 66-11-141, may be filed within ninety (90) days after completion of the structure that is, or is intended to be, furnished water by virtue of drilling a well.
(d) The statement provided for in subsection (a) may be in substantially the following form:
State of _______________
County of _______________
__________ being first duly sworn, says that __________, the Lien Claimant, furnished certain material or performed certain work or labor in furtherance of improvements to the real property hereinafter described, in pursuance of a certain contract, with __________, [the owner, prime
contractor, remote contractor, or other person, as the case may be]. The first of the work or labor was performed or the first of the material, services, equipment, or machinery was furnished on the __________ day of __________, __________(year). The last of the work or labor was performed or the last of the material, services, equipment, or machinery was furnished on the __________ day of __________, __________(year), and there is justly and truly due Lien Claimant therefor from __________, [the owner, prime contractor, remote contractor, or other person, as the case may be] over and above all legal setoffs, the sum of __________ dollars, for which amount Lien Claimant claims a lien under T.C.A. §§ 66-11-101, et seq. on the real property, of which __________ is or was the owner, which is described as follows:
Whenever materials have been furnished to improve real property and delivered to the real property by or for a lienor, and payment for the materials has not been made by the owner of the real property, the materials shall not be subject to attachment, execution, or other legal process to enforce any debt due by the purchaser of the materials, except a debt due for the purchase price of the materials, so long as in good faith the materials are about to be applied to improve the real property; but if the owner has made payment for materials furnished, the materials shall not be subject to attachment, execution, or other process to enforce any debt, including the debt due for the purchase price for the materials.
(a) If for any reason an improvement is abandoned before completion or, though completed, materials delivered are not used for the improvement, a person who furnished materials for the improvement that have not been incorporated in the improvement, and for which the person has not received payment, may repossess and remove the materials; and thereupon the person shall not be entitled to any lien on the real property or improvements for the price of the materials, but shall have the same rights in regard to the materials as if the person had never parted with the possession.
(1) The right to repossess and remove the materials shall not be affected by their sale, encumbrance, attachment or transfer from the site of the improvement subsequent to delivery to the site, except that the right to repossess shall not be effective as against a purchaser or encumbrancer of the materials in good faith whose interest in the materials arose since removal from the site of the improvement, or as against a creditor attaching after the removal.
(2) The right of repossession and removal given by this section shall extend only to materials whose purchase price does not exceed the amount remaining due to the person repossessing; but where materials have been partly paid for, the person delivering them may repossess them as allowed in this section on refunding the part of the purchase price that has been paid.
(a) Every remote contractor shall have the lien provided by this part for work or labor performed or materials, services, equipment, or machinery furnished by the remote contractor in furtherance of the improvement; provided, that the remote contractor:
(1) Satisfies all of the requirements set forth in § 66-11-145, if applicable; and
(2) Within the time provided for recording sworn statements set out in § 66-11-112(a), serves a notice of lien, in writing, on the owner of the property on which the improvement is being made.
(b) The lien shall continue for the period of ninety (90) days from the date of service of notice in favor of the remote contractor, and until the final termination of any suit for its enforcement properly brought pursuant to § 66-11-126 within that period.
(c) The notice of lien may be in substantially the form provided in § 66-11-112(d).
(1) Where the amount due is for work or labor performed or materials, services, equipment, or machinery furnished for a single improvement on contiguous or adjacent lots, parcels or tracts of land and the work or labor is performed or the materials, services, equipment, or machinery is furnished under the same contract or contracts, a lienor shall be required to serve or record only one (1) claim of lien covering the entire claim against the real property.
(2) If two (2) or more lots, parcels, or tracts of land are improved under the same contract or contracts and the improvements are not to be operated as a single improvement, a lienor who has performed work or labor or furnished materials, services, equipment, or machinery for the improvement shall, in claiming a lien, apportion the lienor’s contract price between the several lots, parcels, or tracts of land and improvements on the lots, parcels, or tracts of land, and serve a separate notice of lien for the amount claimed against each lot, parcel, or tract of land and the improvements on the lot, parcel, or tract of land.
(1) Unless the improvements are to be operated as a single improvement, whenever more than one (1) building or unit is constructed upon or other improvement is made to a single lot, parcel or tract of land or to contiguous lots, parcels or tracts of land, the visible commencement of operations as defined in this chapter with respect to each separate building, unit or other improvement shall not be deemed to constitute or otherwise relate to the visible commencement of operations with respect to any other building, unit or improvement on any single lot, parcel or tract of land or any contiguous lots, parcels or tracts of land. In connection therewith, a lienor who has performed work or labor or furnished materials, services, equipment, or machinery shall, in claiming a lien, apportion the lienor’s contract price between the separate buildings, units or improvements on the buildings or units as applicable and serve or record a separate claim of lien for the amount claimed against each separate building, unit or improvement; in such event, the time prescribed in §§ 66-11-112 and 66-11-115 for serving or recording notice of lien shall commence to run with respect to each building, unit or improvement immediately upon the completion or abandonment of the building, unit or improvement.
(2) Whenever a lienor has furnished work, labor, or materials, services, equipment, or machinery for improvements that are to be operated as a single improvement on a single lot, parcel or tract of land or contiguous lots, parcels or tracts of land, the lienor shall be required to serve or record only a single notice of lien covering the lienor’s entire claim against the real property.
(c) Except as expressly provided in the Horizontal Property Act, compiled in chapter 27 of this title, and notwithstanding any other provision of this chapter, a lien arising under this chapter by reason of an improvement that is part of a common interest community does not attach to the common elements, but attaches to the units as follows:
(1) If the improvement was contracted for by the association of unit owners, however denominated, the lien attaches to all the units in the common interest community for which the association acts, unless the association notifies the lienor, when the contract is made, that the lien may attach only to the unit or units on or for the benefit of which the improvement was made; and
(2) If the improvement was contracted for by a unit owner, the lien attaches only to that owner’s unit.
(a) Any notice of lien served or recorded as provided in this chapter may be amended at any time during the period allowed for serving or recording the notice; provided, that the notice and amendment are served or recorded in good faith and the amendment is not shown to be prejudicial to another interested person.
(b) Any amendment of the notice of lien shall be served or recorded in the same manner as is provided for the original notice.
The claims secured by lien for work, labor, materials, equipment, services, machinery, overhead and profit, shall not exceed the contract price and extras in the contract between the owner and the prime contractor.
(a) The proceeds of any insurance that by the terms of the policy are payable to the owner of real property improved, and are actually received by or are to be received by the owner because of the destruction or removal by fire or other casualty of an improvement on which lienors have performed labor, or for which they have furnished materials, services, equipment, or machinery shall, after the owner has been reimbursed from the proceeds for premiums paid for the insurance by the owner, if any, be subject to liens provided by this chapter to the same extent and in the same order of priority as the real property would have been had the improvement not been so destroyed or removed.
(b) The proceeds of any insurance that by the terms of the policy are payable to a prime contractor or remote contractor, and are received or to be received by the prime contractor or remote contractor, shall, after the prime contractor or remote contractor has been reimbursed from the proceeds for premiums paid for the insurance by the prime contractor or remote contractor, if any, be liable for the payment for labor or materials, services, equipment, or machinery furnished and for which the prime contractor or remote contractor is liable in the same manner and under the same conditions as payments to the prime contractor or remote contractor under the contract would have been had the improvements not been so destroyed or removed.
This lien shall not pass to any person to whom the debt is transferred without notice of the lien.
The lien of another shall not be lost where any prime contractor or remote contractor has transferred or assigned the debt or charge due that lienor.
(a) The acceptance by the lienor of a note or notes for all or any part of the amount of the lienor’s claim shall not constitute a waiver of the lienor’s lien, unless expressly so agreed in writing, nor shall it in any way affect the period for serving or recording the notice of lien under this chapter.
(1) Any contract provision that purports to waive any right of lien under this chapter is void and unenforceable as against the public policy of this state.
(A) If a prime contractor or remote contractor solicits any person to sign a contract requiring the person to waive a right of lien in violation of this section, then the person shall notify the state board for licensing contractors of that fact. Upon receiving the information, the executive director of the board shall notify the prime contractor or remote contractor within a reasonable time after receiving the information that the contract is against the public policy of this state and in violation of this section. If the prime contractor or remote contractor voluntarily deletes the waiver of lien provision from the contract and affirmatively states that the language will not be included in any future contracts to perform construction work in this state, then no further action shall be taken by the board against the prime contractor or remote contractor unless a later complaint is filed against the prime contractor or remote contractor for a violation of this section.
(B) If the prime contractor or remote contractor does not delete the waiver of lien provision from the contract, then the executive director shall schedule a hearing for appropriate action by the board. If the board finds after a hearing that the contracts of the prime contractor or remote contractor are in violation of this section, then the board shall immediately revoke the prime contractor’s or remote contractor’s license.
(C) The board shall send notice of the revocation to the prime contractor’s or remote contractor’s licensing authority in all states in which the prime contractor or remote contractor is licensed as a contractor.
(D) In any action for damages based on the waiver of a right of lien filed by a person solicited by the prime contractor or remote contractor, the person has the right to recover from the prime contractor or remote contractor reasonable attorney’s fees and costs in connection with the enforcement of the lien.
(c) Notwithstanding any other provision of this chapter, no liens by remote contractors are allowed under this chapter if, prior to any work or labor being provided or materials, services, equipment, or machinery furnished in furtherance of the improvement, the owner, or the owner’s agent, provides a payment bond, equal in amount to one hundred percent (100%) of the prime contractor’s contract price, in favor of the remote contractors who provide work or labor or furnish materials, services, equipment, or machinery in furtherance of the improvement pursuant to a contract. The payment bond shall be executed with sufficient surety by one (1) or more sureties authorized to do business in this state. The bond shall be recorded in the office of the register of deeds of every county where the real property to be improved, or any affected part, lies.
Nothing in this chapter shall be construed to prevent any lienor under any contract from maintaining an action on the contract as if the lienor had no lien for the security of the lienor’s debt, and the bringing of the action shall not prejudice the lienor’s rights under this chapter.
Liens under this chapter, except as provided in subdivision (5)(A), shall be enforced only by the filing of a complaint, petition, or civil warrant seeking the issuance of an attachment in the manner as follows:
(1) For a prime contractor, the lien shall be enforced in a court of law or equity by complaint and writ of attachment or in a court of general sessions having jurisdiction by a warrant for the sum claimed and writ of attachment, filed under oath, setting forth the facts, describing the real property, with process to be served on the person or persons whose interests the prime contractor seeks to attach and sell;
(2) For a remote contractor, the lien shall be enforced in a court of law or equity by complaint and writ of attachment or in a court of general sessions having jurisdiction by a warrant for the sum claimed and writ of attachment, filed under oath, setting forth the facts and describing the real property with process to be served on the person or persons whose interests the remote contractor seeks to attach and sell. In the discretion of the plaintiff or complainant, the complaint or warrant may also be served on the prime contractor or remote contractor in any degree, with whom the plaintiff or complainant is in contractual privity. In either event, the person or persons whose interest the remote contractor seeks to attach and sell shall have the right to make the prime contractor or remote contractor a defendant by third-party complaint or cross-claim as is otherwise provided by law;
(3) A complaint, petition, or civil warrant under this chapter is timely filed if a suit seeking the issuance of an attachment is filed within the applicable period of time, even if the attachment is not issued or served within the applicable period. The clerk of the court in which the suit is brought shall issue the attachment writ without obtaining fiat of a judge or chancellor;
(4) The clerk of the court to whom application for attachment is made shall, before issuing the attachment, require the plaintiff, or the plaintiff’s agent or attorney to execute a bond with sufficient surety, payable to the defendant or defendants in the amount of one thousand dollars ($1,000) or the amount of the lien claimed, whichever is less; provided, that a party may petition the court for an increase in the amount for good cause shown, and conditioned that the plaintiff will prosecute the attachment with effect or, in case of failure, pay the defendant or defendants all costs that may be adjudged against the defendant or defendants and all such damages as the defendant or defendants may sustain by the wrongful suing out of the attachment; and
(A) Where a bond has been provided pursuant to § 66-11-124, § 66-11-136, or § 66-11-142, an attachment on the real property shall not be necessary after the bond has been recorded, and the claim shall be enforced by a complaint, petition, or civil warrant on the bond before the circuit or chancery court, or before a court of general sessions where the amount is within its jurisdiction, filed under oath, setting forth the facts and describing the real property with process to be served on the obligors on the bond. In the discretion of the plaintiff or complainant, the complaint or warrant may also be served on the owner or owner’s agent, prime contractor or remote contractor in any degree with whom the plaintiff is in contractual privity. In either event, the obligors on the bond shall have the right to make the owner or owner’s agent, prime contractor, or any remote contractor of any degree a defendant by third-party complaint or cross-claim as is otherwise provided by law. Any complaint, petition, or civil warrant on the bond shall be filed in the county where any portion of the real property is located;
(B) Where a lien is enforced pursuant to this subdivision (5), or after suit is commenced on a bond provided pursuant to § 66-11-124, § 66-11-136, or § 66-11-142, the plaintiff shall, in case of failure to prosecute the suit with effect, pay the defendant or defendants all costs adjudged against the defendant or defendants and all the damages the defendant or defendants may sustain by the wrongful assertion of the lien; and
(C) Where a complaint, petition, or civil warrant is brought pursuant to this subdivision (5), or after suit is commenced on a bond provided pursuant to § 66-11-124, § 66-11-136, or § 66-11-142, the defendants shall retain all defenses to the validity of the underlying lien.
The provision of title 30, chapter 2, part 5, prohibiting the bringing of suits against personal representatives after the grant of letters shall not apply to suits brought under this chapter.
