Legal Question in Construction Law in Maryland

Re: Sub-contractor threatens to put lien on property

I assume the project consists of the addition of a sunroom to your existing residence. For a contractor to be entitled to a lien, the value of the residence must be increased by at least 15% by the addition. Otherwise, no contractor is entitled to a mechanic's lien.

Assuming the 15% test is met, the subcontractor must give you written notice of its intent to claim a lien, within 120 days of doing its work. The notice must follow a specific form (Section 9-104 of the Real Property Article of the Maryland Code.) If you get such a notice, then you should withold the amount of the claim from any money due the contractor, and hold the money until the contractors work it out or a court directs who gets the money. Your residence cannot be liened for any sums of money over the amount due the contractor at the time you receive the notice. So, if you have already paid the contractor in full at the time you get the written notice, the subcontractor would not be entitled to a mechanic's lien.

Re: Sub-contractor threatens to put lien on property

It is legal, and provides a means to ensure payment to subcontractors. Once you receive proper notice, you are required to withhold payment to your contractor. If your contractor has been paid before you get notice, the lien is invalid. You should insist that your contractor pay his sub, and get a written lien release signed by the sub.