Ohio mechanics' liens

Minor changes in Ohio’s statutory provisions on mechanics’ liens, contained in ORC § 1311.01 – 1311.24, become effective last March. They none-the-less deserve some notice [ See HB 487 (LSC analysis)].

The lien process essentially involves two key documents—“notices of commencement” and “notices of furnishing” – with a third being “affidavits of mechanic’s liens,” which have to be filed in county recorders’ offices if a contractor or material supplier wants the lien actualized on a real property. (ORC 1311.06)

“Notices of commencement” are affidavits providing specific information on a property, including the owner, contractor, and any lending institution involved in financing an improvement. Provisions remain essentially unchanged except for their now expiring six years after their filing dates. [ ORC 1311.04(S)]

The new provisions create an exception to requirements for “notices of furnishings.” Now, subcontractors or material suppliers need not serve notices in order to preserve their lien rights, if a lending institution has required the filing of a notice of commencement and the owner, part owner, or lessee has filed that notice. [ORC 1311.04(O) and 1311.05(I)]

It is also noteworthy to be aware that if a mortgage and notice of commencement are filed on the same day, the mortgage is to be considered to have been recorded first in considerations for priority of payment [ORC 1311.13 (G)].

Finally, those provisions that hold lien holders liable to a property owner for damages for not filing releases once the lien has been satisfied, have been expanded to include court costs and reasonable attorney fees [ORC 1311.011(B)(3)].


ORC § 1311.01 et seq