A mechanic’s lien is a statutory right enabling those who provide labor and/or materials on a construction project to secure a lien on the property for the value of any unpaid work. Maryland’s mechanic’s lien law is designed to encourage construction by affording this additional protection to laborers and material suppliers. Maryland courts have consistently stated that these statutory requirements must be strictly complied with by a claimant in order to preserve lien rights and ultimately prevail on a mechanic’s lien claim.
A frequent question that arises is who is entitled to a mechanic’s lien under Maryland law. In Maryland, any person furnishing work and/or supplying materials for a building may be entitled to a mechanic’s lien. Any party who performs work or supplies materials on a project may be entitled to a mechanic’s lien, regardless of whether they contracted with an owner, general contractor, or subcontractor. Compare this to the more limiting mechanic’s lien law in the District of Columbia, where only contractors and subcontractors possess lien rights, but lower tier sub-subcontractors and suppliers (anyone without a contract with the owner or general contractor) do not have lien rights.
The type of property subject to a mechanic’s lien is established in MD Code, Real Property, § 9-102, which provides, in part, as follows:
Every building erected and every building repaired, rebuilt, or improved to the extent of 15 percent of its value is subject to establishment of a lien in accordance with this subtitle for the payment of all debts, without regard to the amount, contracted for work done for or about the building and for materials furnished for or about the building, including the drilling and installation of wells to supply water, the construction or installation of any swimming pool or fencing, the sodding, seeding or planting in or about the premises of any shrubs, trees, plants, flowers or nursery products, the grading, filling, landscaping, and paving of the premises, the provision of building or landscape architectural services, engineering services, land surveying services, or interior design services that pertain to interior construction and are provided by a certified interior designer, and the leasing of equipment, with or without an operator, for use for or about the building or premises.
Another key difference in the mechanic’s lien laws of Maryland compared to the District of Columbia and Virginia is commonly referred to as the “15% Rule.” On a renovation project in Maryland, a building must be “repaired, rebuilt, or improved to the extent of 15%” of the property’s value to be subject to a mechanic’s lien claim. If the entire renovation project increases the value of the property by 15% or more, the property is subject to mechanic’s lien claims by unpaid subcontractors/suppliers. If the total renovation project constitutes less than 15% of the property’s value, no mechanic’s lien rights exist. An individual claimant’s contract amount is irrelevant in this analysis, it is the value of the general contract that is determinative for purposes of the 15% Rule. Note that this rule does not apply to new construction projects.
How to File a Mechanics Lien in Maryland
Filing a mechanics lien in Maryland is a multi-step process governed by Maryland Code, Real Property, § 9-101 et seq. Strict compliance with each step is required — a missed deadline or procedural error can permanently extinguish lien rights regardless of the amount owed. The following is a general overview of the process; the specific requirements may vary based on the project type and the claimant’s position in the construction chain.
Step 1: Determine Whether Lien Rights Exist. Before filing, confirm that the project and claimant qualify under Maryland’s mechanic’s lien statute. The claimant must have furnished labor or materials for a qualifying building, and on renovation projects, the 15% Rule (described above) must be satisfied. New construction projects are not subject to the 15% threshold.
Step 2: File a Petition to Establish the Lien Within 180 Days. In Maryland, a contractor or subcontractor must file a petition to establish a mechanic’s lien in the circuit court of the county where the property is located within 180 days of the last date on which labor was performed or materials were furnished. This is the primary filing deadline — missing it permanently bars the lien claim. The petition must be filed in the correct circuit court: for example, projects in Montgomery County are filed in the Circuit Court for Montgomery County; projects in Prince George’s County go to the Circuit Court for Prince George’s County.
Step 3: Serve Notice on the Property Owner. Maryland law requires that the property owner receive notice of the lien petition. The court will issue a show cause order directing the owner to respond. Proper service is essential; failure to serve the owner correctly can result in dismissal of the lien petition.
Step 4: Attend the Show Cause Hearing. After service, the circuit court will schedule a hearing at which the lien claimant must establish the right to the lien. The court evaluates whether the statutory requirements have been met and whether the claimed amount is supported by the evidence. If the court finds in favor of the claimant, it will enter an order establishing the lien.
Step 5: Enforce the Lien Within One Year. Once established, a Maryland mechanic’s lien must be enforced — typically through a lawsuit to foreclose the lien — within one year of the lien’s establishment. Failure to file an enforcement action within this period can cause the lien to expire.
Because filing requirements, deadlines, and court procedures can differ by county and project type, contractors and suppliers should consult with an experienced Maryland mechanic’s lien attorney before taking action.
Maryland Mechanics Lien FAQ
How long do I have to file a mechanics lien in Maryland?
In Maryland, a claimant must file a petition to establish a mechanic’s lien in circuit court within 180 days of the last date labor was performed or materials were furnished on the project. This deadline applies to both general contractors and subcontractors. Missing the 180-day window permanently extinguishes lien rights, so it is important to consult an attorney as soon as a payment dispute arises.
What is the 15% Rule in Maryland mechanics liens?
The 15% Rule is a threshold requirement that applies to renovation and improvement projects in Maryland (but not to new construction). Under MD Code, Real Property, § 9-102, a building must be “repaired, rebuilt, or improved to the extent of 15 percent of its value” for the property to be subject to mechanic’s lien claims. This means that if the total scope of a renovation project does not increase the value of the property by at least 15%, no lien rights exist for any party — regardless of what an individual subcontractor or supplier is owed. The relevant measure is the value of the overall general contract, not any individual claimant’s contract amount.
Who can file a mechanics lien in Maryland?
In Maryland, any person who furnishes labor or materials for a qualifying construction project may be entitled to a mechanic’s lien, regardless of whether they contracted directly with the property owner, a general contractor, or a subcontractor. This includes general contractors, subcontractors, sub-subcontractors, and material suppliers. Maryland’s lien law is broader in this respect than the laws of DC and Virginia.
Do I need to send a preliminary notice before filing a mechanics lien in Maryland?
Maryland does not require subcontractors or suppliers to serve a preliminary notice on the property owner before filing a mechanics lien petition, unlike some other states. However, the petition to establish the lien must be filed within the 180-day deadline, and the property owner must be properly served after the petition is filed. An attorney can help ensure all procedural requirements are satisfied correctly.
What happens after a mechanics lien is established in Maryland?
Once a Maryland court establishes a mechanic’s lien, it becomes a secured claim against the property. The lien claimant must then file an enforcement action — typically a lawsuit to foreclose the lien — within one year of the lien’s establishment. If the lien is foreclosed and the property is sold, the lien claimant may recover unpaid amounts from the sale proceeds, subject to priority rules among competing lien claimants and other secured creditors.
Can a mechanics lien be filed on a government-owned property in Maryland?
Mechanic’s liens generally cannot be filed against government-owned property. When a project is publicly funded or located on government-owned land, contractors and suppliers may instead have bond claim rights under Maryland’s Little Miller Act (Md. Code, State Finance & Procurement, § 17-101 et seq.), which requires payment bonds on public construction projects above certain thresholds. Mike Bramnick handles both mechanics lien claims and bond claims on behalf of contractors and suppliers throughout Maryland.
There are many rules that a lien claimant must comply with in order to prevail on a mechanic’s lien claim. This is a highly technical area that demands strict statutory compliance. Mike Bramnick dedicates a significant part of his practice to mechanic lien claims and construction law. Call Mike Bramnick today at (301) 547-3647 or by email at Mike@BramnickCreed.com for a consultation.