How to Handle Multiple Liens on a Single Property

When a single property has multiple lien claims, collecting what you're owed can become significantly more complicated. Contractors, suppliers, and creditors often find themselves navigating a maze of legal filings, deadlines, and competing interests. If you're unsure how to proceed, this guide will walk you through the steps and show how Miller, Ross & Goldman can help.

Common Types of Liens in Construction

Several types of liens can be placed on a single property, including:

• Mechanics' liens: Typically filed by contractors and suppliers for unpaid labor or materials.
• Judgment liens: Arise from court judgments against the property owner.
• Tax liens: Filed by government agencies for unpaid property or income taxes.
• Vendor liens: Filed by sellers of materials or equipment used in the project.

Each of these may carry different priorities and affect your ability to recover.

Why Multiple Liens Can Complicate Recovery

Competing Claims and Prioritization

When multiple parties file liens, the order in which they’re filed often determines who gets paid first. Priority rules vary by jurisdiction, but in most cases, the first lien recorded has the highest claim. If you're further down the list, your chances of full recovery may be limited.

Impact on Property Sale or Refinancing

A property with several active liens becomes difficult to sell or refinance. All lienholders must be paid or otherwise resolved before ownership can transfer, which can lead to prolonged legal and financial delays.

Risk to Contractors and Suppliers

If a lien is filed late, incorrectly, or without proper documentation, it may be invalidated. Worse, you could be excluded from payment entirely if the property’s value doesn't cover all claims.

Steps to Take When Multiple Liens Are Involved

Conduct a Thorough Title Search

Begin by ordering a comprehensive title search. This will identify every active lien on the property and provide insight into their filing dates, amounts, and legal standing.

Determine Your Lien Position

Knowing your place in the lien hierarchy is essential. Confirm when your lien was filed, ensure it complies with state law, and assess whether your claim is likely to be honored.

Communicate with Other Claimants

Open communication with other lienholders can lead to mutually beneficial resolutions. In some cases, collaborating on legal action or settlement strategies improves the chances of timely recovery for all involved.

How Miller, Ross & Goldman Help Navigate Complex Lien Situations

Lien Filing and Documentation Support

Miller, Ross & Goldman ensures that your lien is filed properly, on time, and with the right supporting documentation. We help you avoid common filing mistakes that can jeopardize your rights.

Legal Assistance When Needed

Should litigation become necessary, we coordinate with a network of commercial attorneys to pursue legal enforcement. From filing suit to executing judgment, our legal partners work on a contingency basis, meaning you don’t pay unless we recover.

Negotiation and Settlement Services

In cases involving multiple liens, a negotiated settlement may offer the best path forward. Our experienced team facilitates communication between parties, aiming to secure a fair resolution while preserving your legal options.

Proactive Measures to Protect Your Lien Rights

File Promptly and Accurately

Delays in filing can cost you your lien rights. Our team helps you meet every deadline and ensures your paperwork is legally sound and enforceable.

Use Preliminary Notices When Required

Some states require that you send a preliminary notice before filing a lien. We track these requirements and manage the process for you.

Work With a Commercial Collection Partner

By partnering with Miller, Ross & Goldman, you gain access to a dedicated team that understands the lien process and can handle all aspects of commercial collections, from pre-lien notices to final resolution.

Staying Ahead in a Crowded Lien Situation

If you're dealing with multiple liens on a property, timing, precision, and legal strategy are essential. Make sure your claim is prioritized, your documents are complete, and your voice is heard. Miller, Ross & Goldman helps you move confidently through this process, supporting your business with construction lien services and commercial debt recovery services. Contact us today to get started.