Page 11 - State Law Summary of Mechanic's Lien Law

Delaware DE

What is the statutory authority? Is there a procedure to bond over the mechanic’s lien(s)?
Delaware Code, Title 25, Part II, Chapter 27, §§ 2701 - 2736. Yes, a mechanic’s lien can be removed from the property if the property owner or
an interested party files a petition and deposits with the court an amount equal to
What is the Attachment Date of the Mechanic’s Lien? the lien claim. The court may also allow the use of other approved security such
A judgment obtained for a mechanic’s lien claim relates back to the day upon which as a bond instead of cash. De. St. 25 § 2729.
the labor was begun or the furnishing of materials commenced; however, when a
first mortgage or a conveyance in the nature of a first mortgage, secures existing Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
indebtedness or future advances (provided at least 50% of the loan proceeds are No.
used for the payment of labor and/or materials) then the lien relates back to the
time immediately following the recording of the first mortgage. De. St. 25 § 2718(a).
What constitutes visible commencement of construction?
There is no visible commencement rule in Delaware.
What is the priority of the insured construction mortgage/
deed of trust?
A mortgage recorded before labor or furnishing materials commences has
priority over mechanic’s liens. De. St. 25 § 2718(a). A first mortgage that secures
existing debt or future advances where at least 50% of the loan proceeds are for
construction of the improvement has priority over mechanic’s liens. Even if the
mortgage is recorded after the claimant first provides labor or materials.

If priority of the insured mortgage/deed of trust is lost, is there a
statutory procedure to regain priority?
No.
When does a mechanic’s lien have to be filed for claimant to maintain
lien rights?
Contractors have 180 days to file a lien starting from one of the following dates
as provided by the contract: 1) the agreed upon completion date in the contract; 2)

the state when the statute of limitations commences for a particular phase or
segment of work the statement of claim relates to if stated in the contract; 3) the
date the statute of limitations starts for the whole contract if stated in the
contract; 4) the date the contractor receives 90% of the total contract payment
include change orders; 5) the date the contractor submits its final invoice;
6) the date when a certificate of occupancy is issued if required; 7) the date
the owner officially accepts the contract as provided for in the contract; 8) the
date the owner’s architect or engineer issues a certificate of completion; 9) the
date permanent financing for the project is completed. All other parties such as
subcontractors or suppliers must file within 120 days of finishing their work or last
delivery of materials. De. St. 25 § 2711.

What is the period of enforcement of a filed mechanic’s lien?
De. St. 25 § 2724 Entries in Mechanic’s Lien Docket. The Prothonotary in each
county of this State shall procure and keep a docket, to be called “The Mechanic’s
Lien Docket”. In the case of judgment for the plaintiff, the time to which the
judgment relates back as a lien and other entries necessary and proper to a full
understanding of the case. The time to which the judgment relates back as a
lien shall be ascertained in the same manner as the amount of the judgment is
ascertained.

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