Construction lien

Purpose

The construction craftsmen's lien is a statutory real property lien. Contractors and craftsmen in the construction industry may insist on the establishment of a lien to secure their claims. The lien may be registered for material and labor or labor alone no later than four months after completion of the work or material delivery and may only be made if the claim has been acknowledged by the owner or established by a court. Registration may not be required if the owner provides sufficient security for the claim filed.

Rank

If several statutory construction liens with different dates are filed for registration, they shall be given equal priority.

Right of first refusal

If the contractors' and workmen's lien claims are forfeited in the liquidation of the lien, the loss shall be compensated from the liquidation share of the prior lienholders in excess of the value of the land, provided that the land has been encumbered by their liens in a manner recognizable to them to the detriment of the contractors and workmen.

If the preceding lien creditor sells his/her lien title, he/she shall compensate the entrepreneurs or craftsmen and craftswomen for what they are deprived of as a result.

Once the commencement of the work has been recorded in the land register upon notification of an entitled party, liens may only be recorded as real property liens until the expiration of the registration period.