MHIC Lien Law — Questions and Answers
Question 1: Under Maryland law, what is the maximum time a general contractor has to file a mechanic's lien after the last day work was performed on a project?
- 90 days
- 120 days
- 180 days (Correct answer)
- 365 days
Correct answer: 180 days
Maryland's mechanic's lien law gives general contractors 180 days from the last day work was performed to file a lien claim in circuit court. Missing this deadline extinguishes the lien right entirely.
Question 2: A subcontractor in Maryland wishes to preserve their right to file a mechanic's lien. Within how many days of last performing work must they provide written notice to the property owner?
- 60 days
- 90 days
- 120 days (Correct answer)
- 180 days
Correct answer: 120 days
Under Maryland law, a subcontractor must give the property owner written notice within 120 days of the last date work was performed in order to preserve lien rights — a shorter window than the general contractor's 180-day filing deadline.
Question 3: Which of the following best describes the purpose of a mechanic's lien in Maryland?
- To allow a contractor to take ownership of the property after non-payment
- To secure payment for labor and materials by placing a legal claim against the property (Correct answer)
- To notify the local building department of unpaid work
- To extend the statute of limitations on a contract dispute
Correct answer: To secure payment for labor and materials by placing a legal claim against the property
A mechanic's lien gives contractors and suppliers a security interest in the property on which they performed work or supplied materials, similar to how a mortgage encumbers a property — it does not grant ownership but creates leverage to compel payment.
Question 4: A property owner in Maryland wants to sell their home while a mechanic's lien is pending. Which action can the owner take to discharge the lien without immediately paying the full claimed amount?
- File a complaint with the Maryland Home Improvement Commission
- Post a bond or cash deposit with the court equal to 1.5 times the lien amount (Correct answer)
- Request that the contractor reduce the claim by 50%
- Record a lis pendens against their own property
Correct answer: Post a bond or cash deposit with the court equal to 1.5 times the lien amount
Under Maryland law, a property owner can discharge a mechanic's lien by filing a bond or depositing cash with the court equal to 1.5 times the lien amount. This frees the property for sale while the underlying payment dispute is resolved.
Question 5: Which of the following is NOT a valid basis for filing a mechanic's lien in Maryland?
- Unpaid labor for construction work performed on the property
- Unpaid materials delivered to and incorporated into the property
- Unpaid design services provided by a licensed architect for the project
- Lost profits from a contract that was cancelled before any work began (Correct answer)
Correct answer: Lost profits from a contract that was cancelled before any work began
Maryland mechanic's liens can only be filed for labor actually performed or materials actually furnished and incorporated into the property. Lost profits on a cancelled contract where no work was performed do not create lien rights.
Question 6: In Maryland, a mechanic's lien may be filed against which types of property?
- Only commercial properties valued over $100,000
- Only residential properties
- Real property, including both residential and commercial (Correct answer)
- Personal property used on the construction site
Correct answer: Real property, including both residential and commercial
Maryland's mechanic's lien law applies to real property regardless of whether it is residential or commercial. Any contractor who performs work or furnishes materials for the improvement of real property may file a lien against that property.
MHIC Lien Law
Under Maryland law, what is the maximum time a general contractor has to file a mechanic's lien after the last day work was performed on a project?