Maryland Notice of Intention to Claim a Lien (Section 9-104)
Real Property Article Section 9-104 requires a Maryland subcontractor to give the owner written notice of an intention to claim a lien, in the form the statute prints, within 120 days. On the owner's own new home a second condition applies. Attorney review available.
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Introduction
One hundred twenty days, counted after doing the work or furnishing the materials, is the Maryland window. It is the same 120 days on a warehouse as on a brand new house, which is exactly how Maryland subcontractors get caught, because what changes with the property type is not the clock but the condition attached to it. Section 9-104(a)(1) of the Real Property Article covers a building other than a single family dwelling being erected on the owner's land for his own residence: give written notice of an intention to claim a lien inside the window, substantially in the form the statute prints, or there is no lien. Section 9-104(a)(2) covers the single family dwelling being erected on the owner's land for his own residence, repeats the same 120 days, then adds something the first paragraph does not have: the subcontractor is entitled to a lien only if the owner has not made full payment to the contractor prior to receiving the notice. Subsection (f)(3) then caps that lien at the amount by which the owner is indebted under the contract at the time the notice is given. So on an owner-built home, a notice that is comfortably inside the window can still be worth nothing. The rest of Section 9-104 is unusually practical. It prints the form, with blanks for the total earned to date, the part due and unpaid, a description of the work with the dates, plus a declaration under the penalties of perjury. It names two delivery routes, allows posting on the door before a witness when the owner cannot be reached, lets one of several owners stand for all, then tells the owner it may hold the money back. DocDraft builds your Maryland notice from your facts, with attorney review available before you send it.
Key Things to Know
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Maryland's document is a written notice of an intention to claim a lien, served by a subcontractor on the owner. The form the statute prints in Section 9-104(b) is headed Notice to Owner or Owner's Agent of Intention to Claim a Lien. Without it there is no subcontractor lien under the subtitle.
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The 120 day window does not change with the property type; the obligation does. Section 9-104(a)(2) adds, for a single family dwelling being erected on the owner's land for his own residence, that the subcontractor is entitled to a lien only if the owner has not made full payment to the contractor prior to receiving the notice. Section 9-104(a)(1) has no such condition for any other building.
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On that same owner-built dwelling, subsection (f)(3) caps the lien at the amount by which the owner is indebted under the contract at the time the notice is given. The date of service sets the ceiling, so an early notice on a house is worth money rather than merely worth compliance.
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Only a subcontractor owes this notice. Section 9-101(g) defines subcontractor as a person who has a contract with anyone except the owner or his agent, while Section 9-101(d) defines contractor as a person who has a contract with an owner. A claimant in privity with the owner is outside Section 9-104 entirely.
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Work out who the owner is before addressing the envelope. Section 9-101(f) says owner means the owner of the land, except that when the contractor executes the contract with a tenant for life or for years, owner means the tenant. Where several people hold title, Section 9-104(d) lets the subcontractor comply by giving the notice to any of the owners.
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Delivery is prescribed, not optional. Under Section 9-104(c) the notice is effective if given by registered or certified mail, return receipt requested, or personally delivered to the owner by the claimant or his agent. Ordinary first class mail is not one of the two routes.
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Posting on the building is a genuine fallback. If notice cannot be given on account of absence or other causes, the subcontractor or an agent may place it on the door or other front part of the building, in the presence of a competent witness, inside the same 120 days. Posting is expressly sufficient wherever the owner has died with no successors in title appearing on the public records of the county.
Key decisions before you file
Before you file a Preliminary Notice in Maryland, a few decisions shape the document: which option to choose and what each one means. The Preliminary Notice guide walks through them.
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Maryland Requirements for Preliminary Notice
Only a Subcontractor Owes This Notice
Section 9-101(g) defines subcontractor as a person who has a contract with anyone except the owner or his agent, which is who Section 9-104 binds. Section 9-101(d) defines contractor as a person who has a contract with an owner; a claimant in privity with the owner is outside the section. Section 9-104 sets no dollar threshold, nor any carve-out for laborers.
Same 120 Days on Both Property Types, Different Test
Section 9-104(a)(1) requires written notice of an intention to claim a lien within 120 days after doing the work or furnishing the materials, for a building other than a single family dwelling being erected on the owner's land for his own residence. Section 9-104(a)(2) repeats the same 120 days for such a dwelling, then adds a second condition: the owner must not have made full payment to the contractor prior to receiving the notice. The window is identical; the obligation is not.
On the Owner's Own New Home, the Service Date Sets the Ceiling
Section 9-104(f)(3) applies notwithstanding any other provision of the section: against a single family dwelling being erected on the land of the owner for his own residence, the subcontractor's lien shall not exceed the amount by which the owner is indebted under the contract at the time the notice is given. Serving earlier on such a house protects a larger figure.
The Printed Form, With a Perjury Affirmation
Section 9-104(b) prints the form, headed Notice to Owner or Owner's Agent of Intention to Claim a Lien, saying it is sufficient if it contains the information required while being substantially in that form. Fields: the subcontractor's name; a general designation or brief description of the building; the total amount earned under the subcontractor's undertaking to date; how much is due and unpaid; a brief description of the work done or materials furnished, the time when that happened, the name of the person for whom the work was done or to whom the materials were furnished; then a declaration under the penalties of perjury.
The Owner, the Owner's Agent, or Any One of Several Owners
The statutory form is addressed to the owner or the owner's agent, nobody else; no construction lender, general contractor or surety is a named recipient. Section 9-104(d) provides that where there is more than one owner, the subcontractor may comply by giving the notice to any of the owners. Section 9-101(f) adds that owner means the owner of the land, except that when the contractor executes the contract with a tenant for life or for years, owner means the tenant.
Registered or Certified Mail With Return Receipt, or Personal Delivery
Section 9-104(c) makes the notice effective if given by registered or certified mail, return receipt requested, or personally delivered to the owner by the claimant or his agent. Those two routes are the whole list, so ordinary first class mail, email or fax is not service. The returned receipt doubles as the proof, because the date of receipt is what the owner-residence conditions are measured against.
Posting on the Door, Before a Competent Witness
Where notice cannot be given on account of absence or other causes, Section 9-104(e) lets the subcontractor or an agent place it on the door or other front part of the building, in the presence of a competent witness, inside the same 120 days. The witness stands in for a return receipt, so record the name, the location, the time. Posting is expressly sufficient in all cases where the owner has died with successors in title not appearing on the public records of the county.
Receipt Lets the Owner Withhold From the Contractor
Section 9-104(f)(1) provides that on receipt of the notice the owner may withhold, from sums due the contractor, the amount the owner ascertains to be due the subcontractor who gave it. Section 9-104(f)(2) adds that if that subcontractor establishes a lien, the contractor receives only the difference between the amount due to the contractor plus that due to the subcontractor. The notice therefore changes the cash flow on the job immediately, rather than only preserving a remedy.