Page 25 - State Law Summary of Mechanic's Lien Law

Massachusetts MA

What is the statutory authority? What is the period of enforcement of a filed mechanic’s lien?
Massachusetts General Laws, Chapter 254, §§ 1-33. The lien shall be dissolved unless a civil action to enforce it is commenced within
90 days after the filing of the Statement of Account. M.G.L. c. 254 § 11.
What is the Attachment Date of the Mechanic’s Lien?
Mechanic’s liens attach as of the date a Notice of Contract is recorded. The lien Is there a procedure to bond over the mechanic’s lien(s)?
must be perfected by recording a notice of contract, statement of account, and a Massachusetts has a statutory procedure for dissolving a mechanic’s lien in
certified copy of a complaint or some combination of those depending on the type exchange for a surety bond. M.G.L. c. 254 § 12 and 14 provide that bonds can
of claimant. M.G.L. c. 254 §§ 2, 2C, 2D and 4. be recorded for liens up to the amount of the Blanket Bond. Note that this type
of bond will not protect the land from a general contractor’s lien. A Section 14
What constitutes visible commencement of construction? “Target Bond” can be recorded by the owner and issued to protect the land from
There is no visible commencement rule in Massachusetts. Notices of Contract or Statements of Account filed by either general contractor
or subcontractors. The Target Bond is recorded after the Notice of Contract or
What is the priority of the insured construction mortgage/ Statement of Account and is specific to a particular lien with a penal sum equal to
deed of trust? the amount of the lien sought to be dissolved.
If no Notices of Contract pursuant to M.G.L. c. 254, § 2 (direct contractors) and/or
§ 4 (subcontractors) are on record at the time the Construction Loan Mortgage Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
is recorded, then the Mortgage will have priority over subsequently recorded Yes.
notices, other than for personal labor under M.G.L. c. 254 § 1, but only to the extent
of thirty (30) days’ personal labor during the ninety (90) days prior to the recording
of a Statement of Account. One distinction between a section 1 and section 2 or
Section 4 lien is that there is no contract between the parties with respect to a
Section 1 lien and a Section 1 lien only covers personal labor whereas a Section
4 lien covers both labor and materials. As a result, Section 1 liens rarely arise in
commercial transactions.

Priority of mortgages and mechanic’s liens as to future disbursements is
governed by MG.L. c. 254 § 7. Section 7 provides that mortgages take priority over
mechanic’s liens (except for a Section 1 lien) only “to the extent of the amount
actually advanced or unconditionally committed” prior to the recording of a Notice of
Contract at the Registry of Deeds.

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?
A Notice of Contract may be filed at any time after execution of the written
contract whether or not the date for performance stated in the written contract
has passed and whether or not the work under the written contract has been
performed, but not later than the earliest of: (i) 60 days after filing or recording of
the notice of substantial completion under M.G.L. c. 254 § 2A.; or (ii) 90 days after
filing or recording of the notice of termination under M.G.L. c. 254 § 2B.; or (iii) 90
days after such person or any person by, through, or under him has performed
or furnished labor or materials or both labor and materials. See also M.G.L. c. 254 §
2C. for Design Profession and M.G.L. c. 254 § 2D. for Subcontractors of Design
Professionals. M.G.L. c. 254 § 4.

RETURN TO INDEX