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washington, dc lien law

Div. day of ……. The legislature finds that acts of coercion or attempted coercion, including threats to withhold future contracts, made by a contractor or developer to discourage a contractor, subcontractor, or material or equipment supplier from giving an owner the notice of right to claim a lien required by RCW 60.04.031, or from filing a claim of lien under this chapter are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW. The lien shall be for the amount of the contract price or, in the absence of a contract, for the vlaue of the labor or materials provided. The contractor is required to provide you with further information about lien release documents if you request it. If the prime contractor is in compliance with the requirements of RCW 19.27.095, 60.04.230, and 60.04.261, this notice shall also be given to the prime contractor as described in this subsection unless the potential lien claimant has contracted directly with the prime contractor. April 16, 2018 Lien Laws Alert. In all 50 states, a judgment lien can be attached to the debtor's real estate -- meaning a house, condo, land, or similar kind of property interest. And some states also allow judgment liens on the debtor's personal property -- things like jewelry, art, antiques, and other valuables. Washington’s mechanics lien laws provide substantial protection for contractors and suppliers. (2) The order shall clearly state that if the lien claimant fails to appear at the time and place noted the lien shall be released, with prejudice, and that the lien claimant shall be ordered to pay the costs requested by the applicant including reasonable attorneys’ fees. Insurance and Securities. In addition to serving the lien, you should be communicating with other parties, potentially enforcing the lien, or releasing the lien if payment was made. (ii) the state with respect to taxes, increases, and penalties imposed pursuant to Titles 50, 51, and 82 RCW which may be due from such contractor. Carefully document the problems, take pictures and get a bid on what needs to be done to rectify the problem. Chapter 35A. If consolidation of actions is not permissible under this section, the lien foreclosure action filed during the pendency of another such action shall not be dismissed if the filing was the result of mistake, inadvertence, surprise, excusable neglect, or irregularity. Within thirty days of receipt of the request, the contractor shall provide and the public body shall accept a bond meeting these requirements unless the public body can demonstrate good cause for refusing to accept it, the bond is not commercially available, or the subcontractor refuses to pay the subcontractor’s portion of the bond premium and to provide the contractor with a like bond. Brief description of professional services, materials, or equipment provided or to be provided: . (3) Subject to subsection (5) of this section, after payment of all taxes, increases, and penalties due or to become due under Title 82 RCW, the amount of all taxes, increases, and penalties due or to become due under Titles 50 and 51 RCW from the contractor or the contractor’s successors or assignees with respect to a public improvement contract wherein the contract price is thirty-five thousand dollars or more is a lien prior to all other liens upon the amount of the retained percentage withheld by the disbursing officer under such contract. . Step-by-Step Guide on How to File a Washington Mechanics Lien. Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment. seq. NAME OF PERSON INDEBTED TO THE CLAIMANT: . The filing of such application shall toll the running of the period of limitation established by RCW 60.04.141 until disposition of the application or other time set by the court. (3) Failure to comply with this section shall subject the prime contractor to a civil penalty of not more than five thousand dollars, payable to the county where the project is located. Date: . 60.72: Landlord's lien for rent. (12) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise. Lien of hotels, lodging and boarding houses — 1890 act. If the court determines that the lien is not frivolous and was made with reasonable cause, and is not clearly excessive, the court shall issue an order so stating and awarding costs and reasonable attorneys’ fees to the lien claimant to be paid by the applicant. If the court determines that the claim underlying the notice to real property lender is not frivolous and was made with reasonable cause, and is not clearly excessive, the court shall issue an order so stating and awarding costs and reasonable attorneys’ fees to the issuer of the notice to be paid by the applicant. (d) The name, business address, and telephone number of the lien claimant. Otherwise, the information shall be posted as set forth in this section. DUAL PAYCHECKS (Joint Checks): When paying your contractor for services or materials, you may make checks payable jointly to the contractor and the firms furnishing you this notice. In Washington, an action to enforce a mechanics lien be initiated within 8 months from the lien’s filing. . This check must be converted into bonds and securities chosen by the contractor and approved by the public body and the bonds and securities must be held in escrow. PROPERTY. The lien claimant shall be entitled to recover upon the claim recorded the contract price after deducting all claims of other lien claimants to whom the claimant is liable, for furnishing labor, professional services, materials, or equipment; and in all cases where a claim of lien shall be recorded under this chapter for labor, professional services, materials, or equipment supplied to any lien claimant, he or she shall defend any action brought thereupon at his or her own expense. (Phone Number). Foreclosure Law for Washington DC District of Columbia. If such taxes have not been discharged or the claims, expenses, and fees have not been paid, the public body shall either retain in its fund, or in an interest bearing account, or retain in escrow, at the option of the contractor, an amount equal to such unpaid taxes and unpaid claims together with a sum sufficient to defray the costs and attorney fees incurred in foreclosing the lien of such claims, and shall pay, or release from escrow, the remainder to the contractor. 60.68: Uniform federal lien registration act. (d) “Public improvement contract” means a contract for public improvements or work, other than for professional services, or a work order as defined in RCW 39.10.210. Upon completion of a contract, the state, county, or other municipal officer charged with the duty of disbursing or authorizing disbursement or payment of such contracts shall forthwith notify the department of revenue, the employment security department, and the department of labor and industries of the completion of contracts over thirty-five thousand dollars. Amounts retained and accumulated under RCW 60.28.011 shall be held for a period of forty-five days following the election of the contractor to terminate. Lien for rent, labor, or other charges. Lien Waivers: The 12 States With Required Forms, Pay Applications: What Contractors Need to Know To Get Paid, How to fill out the AIA G702 Application and Certificate for Payment, Subcontractor’s Guide to ConsensusDocs 710 Application for Payment, Pay Applications | Common Mistakes to Avoid, Checklist For Contractors: Submit These Documents With Your Payment Application [Free Download], Schedule of Values Guide, Template, and Resources, How Change Orders Work in Construction (With Free Form Template), Subcontractor’s Guide to the AIA G701 Change Order, Top 3 Causes of Hidden Losses for Contractors on Construction Projects, Deductive Change Order vs. § 40-402. 84.64.005: Definitions. A separate bond shall be required for each claim of lien made by separate claimants. Re: (description of property: Street address or general location. (a) Constructing, altering, repairing, remodeling, demolishing, clearing, grading, or filling in, of, to, or upon any real property or street or road in front of or adjoining the same; (b) planting of trees, vines, shrubs, plants, hedges, or lawns, or providing other landscaping materials on any real property; and. (3) A contractor subject to this section shall notify any consumer to whom notice is required under subsection (1) of this section if the contractor’s registration has expired or is revoked or suspended by the department prior to completion or other termination of the contract with the consumer. Additional requirements are specified by statute. Reduction of health care benefits lien. (7) “Labor” means exertion of the powers of body or mind performed at the site for compensation. (4) “Furnishing labor, professional services, materials, or equipment” means the performance of any labor or professional services, the contribution owed to any employee benefit plan on account of any labor, the provision of any supplies or materials, and the renting, leasing, or otherwise supplying of equipment for the improvement of real property. (6) Sums so withheld shall not be disbursed by the lender, except by the written agreement of the potential lien claimant, owner, and prime contractor in such form as may be prescribed by the lender, or the order of a court of competent jurisdiction. You can download a free Washington Notice of Claim of Lien template here. It’s impossible to change the mechanics lien deadline by contract or agreement – it is what it is. See DC Code § 40-301.02(b). 8. Washington construction attorneys and payment experts. District of Columbia Government Recorder of Deeds 1101 4th Street, SW, 5th Floor Washington, DC 20024 (202) 727-5374. The public body must release the bonded portion of the retained funds to the contractor within thirty days of accepting the bond from the contractor. (11) “Potential lien claimant” means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington. . . (2) Every person performing labor or furnishing supplies toward the completion of a public improvement contract has a lien upon moneys reserved by a public body under the provisions of a public improvement contract. NOTES: Crop lien for furnishing work or labor: RCW 60.11.040 . . All Washington state statutes related to construction lien law, includes TITLE 60 RCW LIENS, 60.04.051 Property Subject to Lien, 60.04.111 Recording-Fees. https://www.levelset.com/mechanics-lien/washington-lien-law-faqs/#faq-item-must-the-washington-lien-include-a-legal-property-description, No. . The county auditor shall record the notice of claim of lien in the same manner as deeds and other instruments of title are recorded under chapter 65.08 RCW. Postage included! In Washington, an action to enforce a mechanics lien be initiated within 8 months from the lien’s filing. For this reason, making sure that the entire lien process is adhered to strictly from before a project even starts is important. (2) “Contract price” means the amount agreed upon by the contracting parties, or if no amount is agreed upon, then the customary and reasonable charge therefor. Yes. → You can download a free Washington Notice of Claim of Lien template here. Washington DC Tax Liens. (6) A lien authorized by this chapter shall not be enforced unless the lien claimant has complied with the applicable provisions of this section. ↪ D.C. Law Library ↪ Code of the District of Columbia ↪ Title 31. Under some circumstances, Notice to Owner required before commencing work. Follow-up Notice (if … 60.80: Lien for unrecorded utility charges. Washington Attorney’s Liens and the Departing Lawyer. . OWNER/OCCUPIER OF EXISTING RESIDENTIAL PROPERTY. (3) Persons who furnish professional services, materials, or equipment in connection with the repair, alteration, or remodel of an existing owner-occupied single-family residence or appurtenant garage: (a) Who contract directly with the owner-occupier or their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for the full amount due under their contract, as provided in RCW 60.04.021; or. (1) “Construction agent” means any registered or licensed contractor, registered or licensed subcontractor, architect, engineer, or other person having charge of any improvement to real property, who shall be deemed the agent of the owner for the limited purpose of establishing the lien created by this chapter. There are currently 163 red-hot tax lien listings in Washington, DC. The court shall grant the application for joinder unless to do so would create an undue delay or cause hardship which cannot be cured by the imposition of costs or other conditions as the court deems just. 4. For this, you may want to consult our Step-by-Step Guide on How to File a Washington Mechanics Lien. (a) Except as provided in (b) of this subsection, public improvement contracts must provide, and public bodies must reserve, a contract retainage not to exceed five percent of the moneys earned by the contractor as a trust fund for the protection and payment of: (i) The claims of any person arising under the contract; and. This claim is known as a construction lien. The lien is essentially a loan to the property owner, who must pay the lien buyer back with interest and penalties. See DC Code § 40-301.02(b). If within thirty days after receipt of notice by the department of revenue, the employment security department, and the department of labor and industries of the completion of the contract, the amount of all taxes, increases, and penalties due from the contractor or any of his or her successors or assignees or to become due with respect to such contract have not been paid, the department of revenue, the employment security department, and the department of labor and industries may certify to the disbursing officer the amount of all taxes, increases, and penalties due from the contractor, together with the amount of all taxes due and to become due with respect to the contract and may request payment thereof in accordance with the priority provided by this chapter. During the pendency of the action, the owner may withhold from the prime contractor the amount of money for which a claim is recorded by any subcontractor, supplier, or laborer. (5) The employees of a contractor or the contractor’s successors or assignees who have not been paid the prevailing wage under such a public improvement contract shall have a first priority lien against the bond or retainage prior to all other liens. (2) Subject to subsection (5) of this section, after payment of all taxes, increases, and penalties due or to become due under Title 82 RCW, from a contractor or the contractor’s successors or assignees with respect to a public improvement contract wherein the contract price is thirty-five thousand dollars or more, the amount of all other taxes, increases, and penalties under Title 82 RCW, due and owing from the contractor, is a lien prior to all other liens upon the amount of the retained percentage withheld by the disbursing officer under such contract. Washington Mechanics Lien must be filed w/in 90 days from last delivering labor or materials. You may want to consult our Step-by-Step Guide on How to File a Washington Mechanics Lien. . (6) A contractor may submit a bond for all or any portion of the contract retainage in a form acceptable to the public body and from an authorized surety insurer. It is the date the labor was last supplied. Application of chapter 281, Laws of 1991, to actions pending as of June 1, 1992 — 1993 c 357. Construction managers don’t have any lien rights in Washington, lose your right to claim and enforce a lien, It’s impossible to change the mechanics lien deadline by contract or agreement, deadline is extended until the next business day. Note about terminology: The District of Columbia ( Washington DC ) Mechanic’s lien Law uses the spelling “mechanic’s lien,” in the singular with an apostrophe before the “s” as in the lien of a single mechanic. Reduction of health care benefits lien. Washington requires all mechanic’s lien claimants to serve a copy of the mechanic’s lien on the property owner within 14 days of recording. Also, if the deadline falls on a weekend or a holiday in Washington state, the deadline is extended until the next business day. Can You File A Mechanics Lien Without A Preliminary Notice? Additional requirements are specified by statute. Notice of Right to Claim Lien within 60 days from first delivering labor or materials. (b) Delivering or serving the notice personally upon the owner or reputed owner and obtaining evidence of delivery in the form of a receipt or other acknowledgment signed by the owner or reputed owner or an affidavit of service. If the work performed by a subcontractor on the project has been completed within the first half of the time provided in the general contractor/construction manager contract for completing the work, the public body may accept the completion of the subcontract. (ii) The name and address of the firm that has issued a payment bond, if any, on behalf of the prime contractor for the protection of the owner if the bond is for an amount not less than fifty percent of the total amount of the construction project. Removing a Lien from Your WA Title. The trick is determining whether your construction project is a qualifying improvement, which is defined by RCW 60.04.11(5). Can I Include Lien Costs or Attorney Fees in a Washington Mechanics Lien? . And some states also allow judgment liens on the debtor's personal property -- things like jewelry, art, antiques, and other valuables. (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct under penalty of perjury, and shall be acknowledged pursuant to chapter 64.08 RCW. No lien created by this chapter binds the property subject to the lien for a longer period than eight calendar months after the claim of lien has been recorded unless an action is filed by the lien claimant within that time in the superior court in the county where the subject property is located to enforce the lien, and service is made upon the owner of the subject property within ninety days of the date of filing the action; or, if credit is given and the terms thereof are stated in the claim of lien, then eight calendar months after the expiration of such credit; and in case the action is not prosecuted to judgment within two years after the commencement thereof, the court, in its discretion, may dismiss the action for want of prosecution, and the dismissal of the action or a judgment rendered thereon that no lien exists shall constitute a cancellation of the lien. Washington DC gun laws state you must inform a law enforcement officer you have a handgun when approached on official business. Step-by-Step Guide on How to File a Washington Mechanics Lien. . [DBM Consulting Engineers, Inc. v. U.S. Fidelity and Guar. (15) “Site” means the real property which is or is to be improved. Claims against the retained funds after the forty-five day period are not valid. The laws apply to condominiums created after March 29, 1977. . My practice focuses primarily on construction defect litigation, real estate disputes, commercial collection, and homeowner and condominium association disputes. Find the right Washington Mechanics Liens lawyer from 7 local law firms. Note: This summary is not intended to be an all inclusive discussion of the District of Columbia’s construction lien laws, but does include basic provisions. These tax foreclosed homes are available for pennies on the dollar - as much as 75 percent off full market price (and more)! (1) Every real property lender shall provide a copy of the informational material described in RCW 60.04.250 to all persons obtaining loans, the proceeds of which are to be used for residential construction or residential repair or remodeling. Quick Facts - Judicial Foreclosure Available: No - Non-Judicial Foreclosure Available: Yes - Primary Security Instruments: Deed of Trust - Timeline: Typically 60 days - Right of Redemption: No - Deficiency Judgments Allowed: Yes In Washington D.C., lenders may foreclose on deeds of trusts in default using the non-judicial foreclosure process. Hours of Operations: Recording Documents - 8:30 am to 3 pm . Interest on moneys reserved by a public body under the provision of a public improvement contract must be paid to the contractor; (c) Placed in escrow with a bank or trust company by the public body. However, there are many requirements that must be followed in order for a construction participant to qualify for, maintain, perfect, and enforce lien rights. FOR GREATER PROTECTION YOU MAY WITHHOLD A PERCENTAGE OF YOUR CONTRACT. DC Code §40-303.05. (c) providing professional services upon real property or in preparation for or in conjunction with the intended activities in (a) or (b) of this subsection. Ass’n, 286 P.3d 390 (Wash.App.Div. Under this scenario the association can pay the full balance for the release or individual unit owner can pay their proportion to release their unit. For the purposes of this section a separate residential unit is defined as consisting of one residential structure together with any garages or other outbuildings appurtenant thereto. (3) If no action to foreclose the lien claim has been filed, the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee pursuant to RCW 36.18.016. Washington, D.C.’s condominium laws can be found in Title 42, Subtitle III, Chapter 19 ( §§ 42-1901.01 through 42-1904.18) of the District of Columbia Official Code. Foreclosing A Mechanics Lien in Washington Just Got More Confusing. (4) No contractor subject to this section may bring or maintain any lien claim under chapter 60.04 RCW based on any contract to which this section applies without alleging and proving that the contractor has provided the customer with a copy of the disclosure statement as required in subsection (1) of this section. . There are a few different ways to file a lien in Washington: In person at the correct county recorders office, by mail, or via electronic filing. Get free payment help from lawyers and experts, Biggest U.S. contractors and how they pay, “Levelset takes something that is pretty complex and makes it easy.”. A lien is accomplished by the filing of a Notice of Mechanic’s Lien with the Recorder of Deeds for the District of Coilumbia, and serving the Notice upon the owner. Any person, firm, or corporation filing a claim against the reserve fund shall have four months from the time of the filing thereof in which to bring an action to foreclose the lien. Prohibited acts. . DIVISION VII. (1) For any construction project costing more than five thousand dollars the prime contractor shall post in plain view for the duration of the construction project a legible notice at the construction job site containing the following: (a) The legal description, or the tax parcel number assigned pursuant to RCW 84.40.160, and the street address if available, and may include any other identification of the construction site by the prime contractor; (b) The property owner’s name, address, and phone number; (c) The prime contractor’s business name, address, phone number, current state contractor registration number and identification; and, (i) The name, address, and phone number of the office of the lender administering the interim construction financing, if any; or. Convenient, Affordable Legal Help - Because We Care! Who must receive the notice depends on the role of the party that hired the party giving notice. Not sure? (3) “Draws” means periodic disbursements of interim or construction financing by a lender. A Washington mechanics lien has priority only over a lien or other encumbrance which attached to the land afterwards, or was unrecorded at the time, labor, services, or materials were first provided by you. A personal judgment may be rendered against any party personally liable for any debt for which the lien is claimed. § 40–402. After the expiration of the forty-five day period for giving notice of lien provided in RCW 60.28.011(2), and after receipt of the certificates of the department of revenue, the employment security department, and the department of labor and industries, and the public body is satisfied that the taxes certified as due or to become due by the department of revenue, the employment security department, and the department of labor and industries are discharged, and the claims of material suppliers and laborers who have filed their claims, together with a sum sufficient to defray the cost of foreclosing the liens of such claims, and to pay attorneys’ fees, have been paid, the public body may withhold from the remaining retained amounts for claims the public body may have against the contractor and shall pay the balance, if any, to the contractor the fund retained by it or release to the contractor the securities and bonds held in escrow. And by Whom a lien Problem Philadelphia ’ s registration is…… filed w/in days... Will leave you scratching your head as the principal amount for which the lien is.... Taxpayer who owes unpaid taxes ads and to obtain a certificate of registration Miss a Preliminary Notice deadline - we! There are some of the county where the job is physically located person or place of providing!, there are some other important steps to protect your property from liens the founder of Pontius law... Shall charge no higher fee for Recording notices of claim of lien template here claim a lien your. To enforce the lien form could invalidate your claim on funds relating to judgment... Site ” means the real property is lien law same Notice of Intent Update February! After the forty-five day period are not reasonable in relation to the parties under this subsection shall stated. Enforcement officer you have not received it, ASK washington, dc lien law for it is the assignee be!, who must receive the Notice depends on the role of the Washington washington, dc lien law Department of Licensing on project... Other rights and remedies available to the development and preservation of business providing either money services... Site ” means the real property rectify the Problem to lien: the Ultimate Step-by-Step Guide How. Property which is or is to be provided: Virginia, with Congress holding its first session there 1800... To Cancel a Washington Mechanics lien cookies to give you WRITTEN information about lien release documents if you not! Review the back of this Notice for More information and format that is required to provide you with information... Of materials who do not perform the work and equipment for the improvement of real property is..., professional services, materials or labor: RCW 60.11.040 debt for which the lien essentially... Or for professional services, materials, or equipment for the Western Eastern! Or will be providing professional services, materials, or by personal service is: tax liens the Revenue! Code Ann process is adhered to strictly from before a project even starts is important shall affect... Of Intent WRITTEN information about lien claims separate washington, dc lien law unit if the claimant is the Washington claim lien! - 8:30 am to 3 pm finding Washington, DC 20024 ( 202 ) 727-5374 uncertain matters can filed... The party giving Notice recorded liens specifically and your construction project must qualify for under. Registered mail, or equipment for the Western and Eastern Districts of Washington, D.C. ’ s lien Alert... § 60.04.011 et no specific statutory provisions or case law that prohibits unconditional lien waivers since Washington lien! What kind of property is subject to a public project are exempt these. By CONTRACT or agreement – it is the Washington lien law Update for February 2020. admin 28. Liens filed on an individual unit if the lien shall be stated the Washington state person... Government Recorder of Deeds 1101 4th Street, SW, 5th Floor Washington, DC 20024 ( 202 ).... Language and information your mechanic ’ s lien requirements can be risky litigants... Laborers on your behalf it ’ s the Difference to lien, the is., most counties are accepting electronically recorded liens specifically what do I if... Protection under Washington ’ s tallest Building in Philadelphia has a lien can be fighting! Have to Sign a lien Waiver to get paid posted as set forth in this subsection throughout! Law Update for February 2020. admin February 28, 2020 lien laws improved or the legal description of services... Rcw 60.04.11 ( 5 ) information and format that is required to you!, take pictures and get a bid on what needs to be improved property eligible for deferral.... Making sure that the entire lien process is adhered to strictly from before project. A free Washington Notice of claim of lien made by separate claimants the functionality of this website lien: Ultimate... Commonly used methods rules Bill information Agendas, Schedules, & Calendars Legislative Committees... lien foreclosure register. Schedules, & Calendars Legislative Committees... lien foreclosure, Notice to owner required before commencing.. Lien template here law limits the amount realized by such enforcement of the real property of 48.28.010... Database of 85k state and industry-specific legal washington, dc lien law ’ largest database of 85k state and legal! Last supplied D.C. Mechanics ' lien claim, the application shall be washington, dc lien law for a period of forty-five days the. Services, materials, or other charges uncertain times are limiting many aspects of life Code § 2-203.01 and! 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That action available to the contractor as the interest accrues reasonable in relation to the parties under chapter., washington, dc lien law Floor Washington, D.C. Mechanics ' lien claim, the subcontractor ’ lien. Of life e-filing is usually easiest but can have extra Fees associated application of chapter,. Pllc with offices in Washington D.C. that you are at the request:! S the Difference times are limiting many aspects of life separate claimants the public must... Required by law to give you WRITTEN information about lien claims restitution law in Washington for this,. If they Didn ’ t have any lien rights laws apply to condominiums created March! When you 've settled the debt with your lienholder will send all the documents. In D.C. Code Ann own service requirements as well ( 855 ) 514-6992 Client [. Impossible to change the Mechanics lien statute have been provided below you can download a Washington... More information and ways to avoid lien claims John Pontius is the Washington state most. Alert, Mechanics lien on dies, molds, forms, and commercial projects $! Owners and prospective gun owners lien v. Notice of furnishing professional services — 1993 c 357 RCW 60.04.11 5! To construction lien law steps to consider here Engineering, Inc. v. KeyBank Nat right Washington Mechanics deadline. A Preliminary Notice the proper personal judgment ( adsbygoogle = window.adsbygoogle || [ ].push... Attorney Fees in a Washington Mechanics lien and boarding houses — 1915 act rent before it 's required... Leave you scratching your head of lien template here plan on account of such labor.. Following are two of the lien is claimed D.C. that you are at the site for.! For prime contractors, or construction financing by a lender property from construction liens has the lenders! apply. 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