Ohio Mechanics' Lien Law: Ohio Law

Liens

Buyers of new homes are protected against mechanics' liens so long as (i) they have paid the full amount due to the builder and (ii) they did not, before such payment, receive notice of the filing of a mechanics' lien. This protection applies in all three circumstances of (i) homes purchased from builders at the end of the construction process, (ii) homes built on the lot owned by a buyer, and (iii) existing home improvement contracts.

Prior to the performance of any labor or the furnishing of any materials for an improvement on real property which may give rise to a mechanics' lien under sections 1311.01 to 1311.22 of the Revised Code, the owner, part owner, or lessee who contracts for the labor, work, or materials shall record in the office of the county recorder for each county in which the real property to be improved is located a Notice of Commencement in substantially the form specified in division (B) of this section.

Subcontractors not in privity of contract with the owner and original contractor must serve the owner and contractor with a Notice of Furnishing, unless the owner failed to file a notice of commencement. A Notice of Furnishing must usually be made within 21 days after the first date that the subcontractor provides work or materials.

A "laborer" including any mechanic, worker, artisan, or other individual who performs labor or work in furtherance of any improvement does not have to serve a Notice of Furnishing.

Any contractor, subcontractor, materialman, laboror or construction manager who wishes to assert a mechanics' lien must file and serve an Affidavit of Mechanics' Lien. If the lien arises in connection with a residential project, within 60 days from the date on which the last labor or work was performed or material was furnished by the person claiming the lien. On commercial projects, a claimant has 75 days.

Any person filing an affidavit of mechanics' lien shall serve a copy of the affidavit on the owner, part owner, or lessee of the improved property or his designee, within thirty days after filing the affidavit. If the affidavit cannot be served in accordance with section 1311.19 of the Revised Code, then the person shall serve the copy by posting it in some conspicuous place on the premises of the improved property within ten days after the expiration of the thirty days.

Methods of service.

Notice to Commence Suit - the owner or other qualified party may serve the lienholder with a notice stating that he must sue to enforce his lien within 60 days, or lose his lien. The owner or other qualified party must file this notice with the county recorder within 30 days of serving the lienholder.

If, after the amount of his lien has been satisfied or adjudged against him in an action thereon, a lienholder fails within 30 days thereafter to cause the lien to be released, such lienholder is liable to the owner, part owner, or lessee for all damages arising therefrom, not exceeding the amount of the lien and costs.

Liens continue in force for six years after an affidavit is filed in the office of the county recorder under section 1311.06 of the Revised Code. If an action is brought to enforce the lien within that time, the lien continues in force until final adjudication thereof. Mechanics' liens filed have priority over mortgages that are filed after the mechanics' lien's effective date.

The construction mortgage statute. This statute creates an exception to the general rule that a mortgage is subordinate to mechanics’ liens with an effective date prior to the mortgage’s recording. Under the statute, a mortgage used to finance improvements or pay off prior encumbrances has priority over mechanics’ liens.