The new law requires the recordation of a lis pendens after filing a lawsuit to foreclose on a mechanics’ lien and service on all parties who have an interest in the property. So, the claimant will have to get a title report run to determine who has an interest in the property and to serve them all with the lis pendens. This will cost the claimant more and require at minimum a litigation guarantee from the title company so that the claimant is covered if someone on title is not disclosed. Small claimants may decide the cost is prohibitive or may not consult a construction lawyer who has experience and will protect their lien rights properly.
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