As a subcontractor in Tennessee, it is important to understand your lien rights when working on a construction project. Lien rights allow you to have a legal claim against the property being worked on, ensuring that you are paid for your services. In this article, we will discuss the basics of subcontractor lien rights in Tennessee.
What is a Subcontractor Lien?
A subcontractor lien is a legal claim that allows a subcontractor to hold a property until payment is made for their services. Without a lien, subcontractors may not receive payment for their work, leaving them with little recourse to get paid for their services.
Lien rights in Tennessee are regulated by the Tennessee Lien Law, which outlines the requirements and guidelines for filing a lien.
Who has Lien Rights in Tennessee?
In Tennessee, sub-contractors, suppliers, and material providers have lien rights. However, it is important to note that only those who have a direct contract with the general contractor have lien rights. Sub-subcontractors and material suppliers who are not in direct contact with the general contractor do not have lien rights in Tennessee.
How to File a Subcontractor Lien in Tennessee
In Tennessee, subcontractors must follow specific procedures in order to file a lien and preserve their lien rights. These steps include:
1. Filing a Notice of Non-Payment: If a subcontractor is not paid for their services, they have the right to file a Notice of Non-Payment within 90 days of the last day of work. This notice must be sent to the general contractor, the property owner, and any other parties who have an interest in the property.
2. Filing a Claim of Lien: If the subcontractor is still not paid after 90 days, they may file a Claim of Lien with the county clerk`s office where the property is located. This lien must be filed within 90 days of the last day of work.
3. Filing a Lawsuit: If the subcontractor is still not paid after filing a Notice of Non-Payment and a Claim of Lien, they may file a lawsuit to enforce their lien rights. This lawsuit must be filed within one year of filing the Claim of Lien.
Conclusion
Understanding your lien rights as a subcontractor in Tennessee is crucial to protecting yourself and your business. By following the proper procedures and filing the necessary documents, you can ensure that you are paid for your services and that your lien rights are protected. If you have any questions or concerns about your lien rights in Tennessee, it is recommended that you consult with a qualified attorney.