- Wisconsin is a FULL PRICE BALANCE lien state.
- Notification is required when selling directly to the owner on private projects.
- If a prime contractor furnishes a Payment Bond for a private project in accordance with the requirements of Wisconsin Statutes ยง779.035, no person other than the prime contractor has lien rights against the land. Pursue the bond.
- Additional remedies may be available under the state's Construction Trust Fund statutes.
Notice Speed Bumps
- Unless excluded by statute, a subcontractor/supplier must give owner written notice two copies of which must be served on owner personally or by registered mail. Owner must furnish a copy of the notice to the mortgage lender within 10 days after receipt.
- A late notice will trap unpaid funds provided after the notice is served.
- A potential lien claimant (i.e., either a prime contractor or a subcontractor) does not have to give a notice of lien rights if one of the following apply:
a. The lien claimant is any laborer or mechanic employed by any prime contractor or subcontractor.
b. The lien claimant has contracted directly with the owner for the work or materials furnished, unless the claimant is a prime contractor subject to the statutory notice requirements.
c. Where more than 4 family living units are to be provided or added and the improvement is wholly residential in character.
d. Where the improvement is partly or wholly nonresidential in character.
e. By any prime contractor who is personally an owner of the land to be improved.
f. By any lien claimant who furnishes labor or materials for an improvement on a project on which the prime contractor is not required to give a notice of lien rights.
- Bond Claim Notice on private projects is not required if claimant's contract does not exceed $5,000 or if claimant is listed in a written contract or in a document appended to a written contract between a subcontractor/supplier and the prime contractor.
- Wrongful use of materials. Any prime contractor or any subcontractor furnishing materials who purchases materials on credit and represents at the time of making the purchase that the materials are to be used in a designated building or other improvement and thereafter uses or causes them to be used in the construction of any improvement other than that designated, without the written consent of the seller, may be fined not more than $300 or imprisoned not more than 3 months
Mechanic's Lien Speed Bumps
- The lien extends to all contiguous land of the owner, but if the improvement is located wholly on one or more platted lots belonging to the owner, the lien applies only to the lots on which the improvement is located.
- The notice required 10 days prior to lien is required to be given whether or not the claimant has been required to and has given a previous notice pursuant to s. 779.02. Such notice shall briefly describe the nature of the claim, its amount and the land and improvement to which it relates.
Foreclosure Speed Bumps
- If any deficiency arises upon the sale in the payment of the sums adjudged to be due to any lien claimant, the court, upon confirming the sale, may render judgment for the deficiency if demanded in the pleadings against the defendant legally liable to pay the deficiency.
|
