In our companion post, we looked at the quirks that make Virginia’s mechanic’s lien law unique. A link to that post is here. Just across the Potomac, Maryland’s version of the same tool is built on a completely different foundation. If you build, renovate, or supply materials on a Maryland project — or  own property that’s under construction — these features are worth understanding.

1. Where do I find Maryland’s mechanic’s lien law?

Maryland’s mechanic’s lien statute is found in Title 9 of the Real Property Article of the Maryland Code. That’s where you’ll find who qualifies for a lien, what it attaches to, and the procedure for establishing and enforcing one. As in Virginia, Maryland courts have layered decades of case law on top of the statutory text, and that case law fills some of the gaps the statute leaves open.

2. No Lien Until a Judge Says So

In many states, a mechanic’s lien exists from the moment the claimant starts supplying labor or materials, even though it isn’t formally recorded until later. Maryland doesn’t work that way. A Maryland claimant has no lien at all until a court enters an order establishing one, following a Petition to Establish a Mechanic’s Lien and a summary “show cause” hearing at which the claimant provides evidence supporting the validity of the petition.

3. Two Deadlines, One Starting Line

Maryland has two separate deadlines, and — unlike Virginia’s layered 90-day/150-day system — both run from the exact same event: the date the claimant last supplied labor or materials to the project.

• A subcontractor (or other lower-tier party not in contract with the owner) must serve a Notice of Intent to Lien on the owner by certified mail or personal delivery within 120 days of the last work.
• Every claimant — general contractor or subcontractor — must then file the Petition to Establish a Mechanic’s Lien within 180 days of the last work.

There’s no “last day of the month” grace period like Virginia’s and no look-back cap limiting how far back a claim can reach.

Both the Notice of Intent to Lien and the Petition to Establish a Mechanic’s Lien have strict requirements that should be followed to preserve the right to claim a lien.

4. A Sale of the Property Can Wipe Out Lien Rights Overnight

A sale of the property before the lien is established can defeat it entirely. A “bona fide purchaser” — someone who pays fair value without knowledge of the claim — takes the property free and clear of any mechanic’s lien. Maryland courts have gone a step further, holding that once “equitable title” passes — meaning the property is simply under a contract of sale — lien rights are cut off, even before closing actually occurs.

The filing of a Petition to Establish a Mechanic’s Lien constitutes notice to prospective purchasers, even if an interlocutory lien has not yet been granted by the court.

5. No Defense of Payment — With One Narrow Exception

In Maryland, paying the general contractor in full doesn’t protect the owner. If the general contractor doesn’t pass that money on to a subcontractor, the subcontractor can still establish a lien and foreclose — meaning the owner may effectively pay for the same work twice. The burden is on the owner to withhold funds once a Notice of Intent to Lien arrives and to monitor whether the general contractor is actually paying downstream.

There’s only one exception: an individual owner building a personal residence on their own land has a defense of payment, so long as they’ve paid everyone they contracted with directly. That protection belongs to owner-occupants, not developers, investors, or builders holding title in their own name for resale.

6. The 15% Rule for Renovation Projects

For construction projects involving the renovation or repair of existing buildings, a prospective lien claimant also must satisfy the “15% Rule.” While new construction is exempt from this requirement, for renovations, the claimant must demonstrate that the building was repaired, rebuilt, or improved by at least 15% of its value. If that threshold is not met, the project is not subject to a lien claim.

Although the 15% Rule is often easily satisfied, it may pose a challenge for prospective lien claimants on smaller renovation projects.

7. Lien Rights Cannot Be Waived in Advance

Unlike certain other jurisdictions, Maryland prohibits subcontractors and suppliers from waiving lien rights by contract in advance of the work being performed or the materials being supplied. Both general contractors and subcontractors should be aware that such provisions will be deemed void as against public policy and will not be enforced.

This prohibition does not apply to contracts between the owner and the general contractor, nor does it limit the ability to require executed lien waivers in exchange for progress payments.

The Takeaway

Maryland’s mechanic’s lien law asks contractors to do something Virginia doesn’t: go to court and prove entitlement to a lien before it exists at all. That single structural difference drives many of the other quirks on this list.

Note that while a mechanic’s lien can be a very powerful remedy, it is not an exclusive remedy.  Rather, the right to file a mechanics’ lien against the property is in addition to other remedies available under Maryland law, such as the right to file a breach-of-contract action against the person or entity that broke their promises.