Prime Contractor — Sworn Statement of Amount Due (T.C.A. §§ 66-11-112 to 117)
A prime contractor on a commercial project must file a Sworn Statement of Amount Due within 90 days after completion of the contract. This sworn statement is recorded with the County Register in the county where the property is located and serves to protect the lienor against subsequent purchasers or encumbrances for value. T.C.A. §§ 66-11-112 to 117.
The Sworn Statement of Amount Due must accurately reflect the amount owed to the contractor for labor, materials, or services furnished under the contract. Filing this statement is essential to preserving the contractor's mechanic lien rights against third parties who may acquire an interest in the property after the work is completed.
Remote Contractor — Mechanic Lien Recording on Commercial Property
Remote contractors (subcontractors and materialmen not in privity with the owner) on commercial property must serve a Notice of Mechanic Lien on the property owner within 90 days after the last work performed or materials supplied. If the Notice of Mechanic Lien is not served within that initial 90-day period, the remote contractor must record and serve the notice within 90 days after completion of the overall project. T.C.A. §§ 66-11-115, 117.
The mechanic lien must be recorded by registering a statement of the amount due for work or materials furnished with the County Register in the county where the premises, or any part thereof, are situated. The statement should include the claimant's name, the amount claimed, a description of the property, and a description of the labor or materials furnished.
Mechanic Lien Relation-Back and Priority (T.C.A. § 66-11-104)
In Tennessee, a mechanic lien relates to and takes effect from the time of the visible commencement of operations on the property. However, the statute excludes demolition, surveying, excavating, clearing, filling, or grading and the delivery of materials from the definition of visible commencement of operations. T.C.A. § 66-11-104.
If there is a cessation of all operations at the site of the improvement for more than 90 days, any mechanic lien for labor of any nature furnished after the visible resumption of operations shall relate to and take effect only from the date of that visible resumption. This provision can significantly affect mechanic lien priority in cases where construction is delayed or suspended for extended periods.
Notice of Completion — Shortened Mechanic Lien Recording Periods
The property owner may file a Notice of Completion to shorten the time period for recording a mechanic lien. On commercial projects, the filing of a Notice of Completion shortens the mechanic lien recording deadline from 90 days to 30 days. On residential projects, the deadline is shortened to just 10 days from the filing of the Notice of Completion. T.C.A. §§ 66-11-115, 117.
Remote contractors must respond to a Notice of Completion by giving notice within 30 days of its filing. T.C.A. § 66-11-143. Residential contractors must register within 10 days of the filing of the Notice of Completion. T.C.A. § 66-11-146. These shortened deadlines make it imperative for claimants to monitor the public record for the filing of a Notice of Completion.
Residential Property — Contractor Mechanic Lien Recording
On residential property, only the contractor in direct privity with the property owner may assert mechanic lien rights. The contractor must register to maintain priority over third parties. T.C.A. § 66-11-117. No mechanic lien is permitted if the contractor is not properly licensed in the jurisdiction where the work is performed.
For the residential contractor's mechanic lien to take priority over a pre-existing mortgage, the contractor must give written notice to the mortgage holder before work begins. T.C.A. § 66-11-108. This proactive notice requirement distinguishes Tennessee from many other states where mechanic lien priority is determined solely by the date of visible commencement.
Frequently Asked Questions
How long does a prime contractor have to file a Sworn Statement of Amount Due in Tennessee?
A prime contractor must file a Sworn Statement of Amount Due within 90 days after completion of the contract. This statement is recorded with the County Register in the county where the property is located. T.C.A. §§ 66-11-112 to 117. Failure to file within this window may jeopardize the contractor's mechanic lien priority against subsequent purchasers or encumbrances.
What is the mechanic lien recording deadline for remote contractors in Tennessee?
Remote contractors on commercial property must serve a Notice of Mechanic Lien on the owner within 90 days after the last work performed or materials supplied. If this initial deadline is missed, the remote contractor may still record and serve the notice within 90 days after completion of the entire project. T.C.A. §§ 66-11-115, 117. However, the property owner may file a Notice of Completion to shorten this period to 30 days on commercial projects.
What does 'visible commencement of operations' mean for Tennessee mechanic lien priority?
Under T.C.A. § 66-11-104, a Tennessee mechanic lien relates back to the time of visible commencement of operations on the property. However, the statute excludes demolition, surveying, excavating, clearing, filling, grading, and delivery of materials from the definition of visible commencement. Additionally, if operations cease for more than 90 days, any mechanic lien for work performed after resumption relates only to the date of visible resumption.
Can a property owner shorten the mechanic lien filing deadline in Tennessee?
Yes. A Tennessee property owner may file a Notice of Completion, which shortens the mechanic lien recording period from 90 days to 30 days on commercial projects and to 10 days on residential projects. T.C.A. §§ 66-11-115, 117. Claimants should monitor the public record for the filing of a Notice of Completion to avoid missing these shortened deadlines.
Can an unlicensed contractor file a mechanic lien on residential property in Tennessee?
No. Under Tennessee law, no mechanic lien is allowed if the contractor is not properly licensed in the jurisdiction where the work is performed. T.C.A. § 66-11-146. This licensing requirement applies specifically to residential property and underscores the importance of verifying contractor licensure before commencing work.
Related Tennessee Resources
Explore other critical compliance areas for Tennessee construction mechanic lien law.
Notice Requirements
Statutory notice obligations for prime contractors, remote contractors, residential contractors, and public works bond claimants under Tennessee law
Mechanic Lien Enforcement Deadlines
Suit filing timelines, mechanic lien foreclosure deadlines, payment bond claim enforcement, and state highway project procedures
Tennessee Overview
Return to the main Tennessee construction mechanic lien law page