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Ohio's mechanics' lien law is designed to provide protection to contractors, subcontractors, material suppliers, and laborers on construction projects in the event of non-payment. Liens can be placed on property that the lien claimant worked on or supplied materials for.
Aside from paying off a lien, a homeowner generally has three options for dealing with a mechanics' lien: put up a bond to remove the lien from the property, force the lienholder's hand by making them sue on the lien (and in turn have the lien removed if a lawsuit is not filed), or sue the lienholder for wrongfully ...
Options for Removing Mechanic's Liens Pay to Get the Mechanic's Lien Removed. ... Cancelling the Contract Under Ohio Consumer Law to Remove the Mechanic's Lien. ... Force the Contractor to Act on its Lien by Using a Notice to Commence Suit. ... File a Bond or Cash Deposit with Your County Court of Common Pleas.
Judgment liens are attached to a debtor's real property and will remain in effect for five years. A creditor can obtain a judgment lien by filing a certificate of judgment with the clerk of the court of common pleas in any county where the debtor owns or may own real property in the future.
The Affidavit of Mechanics' Lien must be filed at the county recorder's office where the project was located. It must also be served on the owner within 30 days of filing. If the owner cannot be found, a copy of the lien must be posted conspicuously on the project site within 10 days of failure of service.
If a subcontractor or materialman has not been paid, s/he can file a mechanics' lien. On commercial projects, a claimant has 75 days from the last day materials or labor was provided. For a residential project, a claimant only has 60 days.
In Ohio, parties may send a Notice of Intent to Lien to warn a property owner about their plans. Sending this notice gives the property owner a chance to settle the outstanding debts and to sort out the payment dispute before it gets escalated.