When can a subcontractor file a lien?
When can a subcontractor file a lien?
Under Tennessee law, a subcontractor is considered an indirect lien claimant since he or she typically does not have a contract with the owner of the property. Even though a subcontractor does not have a contract with the owner, he or she might still have lien rights. To determine if a subcontractor has lien rights, you must consider the following: Did the subcontractor contribute to an improvement in real property? Is the improvement part of a residential or commercial project? Has the subcontractor taken the necessary steps to ensure he or she has not lost whatever lien rights he or she may have had?
Improvements
In most situations, this is obvious. The subcontractor has either performed services or delivered materials as part of a construction or renovation project that permanently alters or “improves” the real property.
Residential or commercial property
For subcontractors, Tennessee law treats residential projects and commercial projects differently.
Residential projects
Generally speaking, subcontractors do NOT have lien rights for improvements made to residential property. One exception in which a subcontractor … Read the rest
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