Can an unlicensed contractor file a mechanics lien in every state

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Learn about the lien filing process for unlicensed contractors and get free expert advice at https://www.levelset.com/payment-help..., or read related FAQs here: https://www.levelset.com/payment-help.... • 00:00 - Intro • 00:19 - Option 1 • 00:45 - Option 2 • 01:38 - New Mexico Laws • 01:55 - Common Issues • #UnlicensedContractor #MechanicsLien #Construction • There are two scenarios that could come up when an unlicensed contractor try to file a Mechanics Lien. • Scenario 1: Unlicensed contractors are penalized, but can still file a Mechanics Lien. • In states like Texas and Colorado, unlicensed contractors are penalized, but they are still allowed to recover some sort of compensation for the work they performed. That means, an unlicensed contractor in Texas and Colorado can file a Mechanics Lien. • Scenario 2: Unlicensed contractors have no way of recovering payment for their work with a mechanics lien. • In California and Washington, the laws against unlicensed contractors are very strict — unlicensed contractors have no recovery whatsoever. This means they cannot file a lien, or a lawsuit, or anything at all. If an unlicensed contractor provided $1,000,000 of work, and a party refused to pay them, the contractor would not be able to collect payment. Doing work without a license is generally risky no matter where you are, so take the necessary steps to get licensed. • It is important to keep in mind that in some states, not only can unlicensed contractors be denied payment, but they may also be required to give back the money already paid. For example, in New Mexico, unlicensed contractors cannot file mechanics liens, or sue to recover money unpaid. What’s more, New Mexico may also require unlicensed contractors to return money already paid to the property owner. • You should always get licensed if it’s required, because it is very rare that unlicensed contractors are not penalized in some way. In some states, an unlicensed contractor may be subject to fines and/or penalties, may be liable to the property owner for damages, and may be guilty of a misdemeanor or even a felony. • Over 500,000 contractors and suppliers connect on Levelset’s cloud-based platform to make payment processes stress-free. Users easily exchange payment documents like Lien Waivers, Pay Applications, and Preliminary Notices, they see a complete picture of who is on their job, and are empowered with the resources and knowledge they need to be confident in payment. The results are faster payments and fewer surprises. • Levelset is venture-backed by S3 Ventures, Altos Ventures, and Brick Mortar Ventures. Headquartered in New Orleans with offices in Austin and Cairo, Egypt, Levelset employs more than 150 people. For more information about Levelset, visit http://levelset.com or call 866-720-5436.

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