A subcontractor just filed a lien against your Lexington, Kentucky commercial property, claiming you owe them thousands of dollars for work you already paid your general contractor to complete. This lien now blocks your ability to sell or refinance your building, and if you ignore it, the subcontractor can force a court-ordered sale of your property to collect the debt. Understanding how this legal threat works is the first step to protecting your investment.
How mechanics liens threaten your property
Kentucky Revised Statutes Section 376.010 grants subcontractors and suppliers the right to file a lien if they do not receive payment, but they must follow a two-step process. First, they send you a Notice of Intent within 120 days of their last day of work for claims over $1,000, or 75 days for smaller claims. Second, they file the Statement of Lien with the County Clerk within six months.
The claimant then has 12 months from the filing date to file a lawsuit to enforce the lien. If they miss this deadline, the lien dissolves by law, but even an expired lien can scare off buyers and require legal action to clear your title. Once filed, the lien makes it nearly impossible to sell or refinance.
Common scenarios that lead to lien claims
The following situations frequently result in lien filings:
- General contractors who mismanage funds or face financial difficulties
- Disputes between contractors and subcontractors over work quality
- Material suppliers who never receive payment from the contractor
- Subcontractors cut out when contractors abandon projects
In each case, the unpaid party looks to you as the property owner to satisfy their claim.
The cost of ignoring lien notices
Ignoring a mechanics lien does not make it disappear. The claimant can file a lawsuit to foreclose, and if they win, the court can order the sale of your property. You may also face liability for attorney fees and court costs. Even if you defeat the lien, the cloud on your title can derail business transactions for months.
Why experienced legal counsel matters
A construction law attorney experienced in Kentucky mechanics lien disputes can verify the validity of claims, negotiate settlements and examine whether the claimant followed proper procedures. They can challenge inflated amounts and explore bonding options to remove the lien from your title. How quickly and aggressively you respond often determines whether you lose your property or preserve your investment, because waiting too long can cost you defenses you cannot recover.