Page 53 - State Law Summary of Mechanic's Lien Law

Wisconsin WI

What is the statutory authority?
Wis. Stat. § 779.01 et. seq.
What is the Attachment Date of the Mechanic’s Lien?
Lien attaches as of the date of visible commencement of the work of improvement.
Wis. Stat. § 779.01(4).

What constitutes visible commencement of construction?
Commencement occurs no earlier than the start of substantial excavation for the
foundations, footings and base of the new construction. If the new construction
is in addition to an existing structure , commencement is the earlier of the start
of substantial excavation or the start of substantial preparation of the existing
structure to receive the added construction. Wis. Stat. § 779.01(4).
What is the priority of the insured construction mortgage/
deed of trust?
A mortgage recorded before visible commencement of the work of improvement
has priority over mechanic’s liens. Wis. Stat. § 779.01(4).

In addition, a construction loan has statutory priority even though work has
commenced provided no lien has been filed prior to the recordation of the
mortgage. Lenders eligible for this type of priority are listed in Wis. Stat. § 706.11.
The mortgage must clearly state on the first page that it is a construction loan
security instrument and all advances must be made to complete the contemplated
improvement on the property. Wis. Stat. §§ 706.11 (1m)(a), (b) and 779.01(4).

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 claim of lien must be filed in the office of the clerk of circuit court within 6 months
from the date the lien claimant performed, furnished or procured the last labor,
services, materials, plans or specifications. Wis. Stat. § 779.06(1).

What is the period of enforcement of a filed mechanic’s lien?
A lien under Wis. Stat. § 779.01 won’t be valid—and you can’t enforce it—unless
you file a lawsuit, including a summons and complaint, within two years of filing
the lien. Wis. Stat. § 779.06(1).

Is there a procedure to bond over the mechanic’s lien(s)?
If the prime contractor provides a payment bond under Wis. Stat. § 779.035
pursuant to an agreement with the owner, subcontractors and suppliers (other
than the prime contractor) lose their lien rights. The owner–contractor agreement
must require the prime contractor to pay all claims for labor, services, and
materials, except plans and specifications furnished by the owner’s architect,
engineer, or surveyor. The prime contractor must also provide a surety bond from a
licensed Wisconsin surety company with a penalty amount at least equal to the
contract price.
Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
Yes.

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