Question 1

What is a Mechanic Lien?

Accepted Answer

The shop with consent of the owner, has custody (possession) of a motor vehicle or vessel and, at the request of the owner,  provides a service or materials for the motor vehicle or vessel, has lien on the motor vehicle or vessel for any charge incurred for any repair or rebuilding, storage, tire or other parts or accessories. The bill must be uncollected.

Question 2

What are my rights under the law?

Accepted Answer

As a licensed repair shop or marina manager or owner, you have the rights that protect your business labor and services. If you are in possession of an unpaid and unclaimed vehicle or vessel for a period of at least 30 days and have performed labor and/or services of any kind you may place a mechanic lien on that property.

Question 3

Why does the vehicle or vessel need to be auctioned?

Accepted Answer

Per Maryland Commercial Law, the vehicle must be auctioned.

Question 4

How does the auction work?

Accepted Answer

If you have filed a lien against a vehicle or vessel, the minimum bid will be your lien amount (amount owed to you) plus a processing fee. If we receive a bid on a vehicle, we must accept the bid. Of course as the lienor, you have the right to bid. If you win, the amount due will be less your lien amount. If you don't accept the results of the auction/sale, the case will be filed away and NO REFUND will be given. NO EXCEPTIONS

Question 5

Why do I need to provide my Federal Tax ID number?

Accepted Answer

Per MVA: On July 1, 2015 all businesses wishing to title a vehicle will be required to show proof of the legal existence of the business.  The business will be given a number with a "Z" to identify it.

Question 6

My business must be in "Good Standing" with the state of Maryland. What does that mean?"

Accepted Answer

In order to file a mechanic lien, your business must be in good standing with the state of Maryland. This means your business must be an active business and has paid all of the fees needed to be an active business for a given year. If you are unsure what your "Standing" is with the state, simply click the link below and type in your full LEGAL business name. 
https://egov.maryland.gov/businessexpress/entitysearch

Question 7

What are my rights under the law?

Accepted Answer

As a licensed repair shop or marina manager or owner, you have the rights that protect your business labor and services. If you are in possession of an unpaid and unclaimed vehicle or vessel for a period of at least 30 days and have performed labor and/or services of any kind you may place a mechanic lien on that property.

Question 8

I got an OK to do the work, but no signed repair bill, is that ok?"

Accepted Answer

The work order has to be OK’d for repairs by the owner, either by signature or verbal, signed and dated by person getting OK by phone. It is best to get a signed work order! Also, it is best to photo copy their driver's license.

Question 9

How long must the repair order be overdue?

Accepted Answer

Charges for the vehicle's or motor home's repairs, rebuilding or storage must go unpaid for a period of at least thirty (30) days.  For trailers ONLY, charges must go unpaid for at least ninety (90) days.

Question 10

How long does the Mechanic Lien process take?

Accepted Answer

Its a case by case basis. If the vehicle is paid off by the lien holder, the owner or sold at auction it could take as little as 2-3 weeks. If no one pays off the vehicle or it doesn't sell at auction it could take as much time as 6 to 8 weeks.

Question 11

Can I do a Mechanic Lien just for storage?

Accepted Answer

Yes, the only time you can do a lien for storage is when you have a signed storage agreement between you and the customer.
Please note: If you are storing a vehicle please include the Year, Make & Model including the VIN number on the storage agreement.

Question 12

I bought a car at an auction without a title, Can I place a Lien on it?"

Accepted Answer

Absolutely not. If you bought the vehicle from auction you cannot place a mechanic lien on the vehicle. It is fraudulent in the state of Maryland to do so, and if caught you will be fined

Question 13

I have a vehicle abandoned on my property, can I file a lien on the vehicle?"

Accepted Answer

If the vehicle was abandoned by a customer after you have completed repairs, then yes. 
 
If you do not know who the owner of the vehicle or vessel is or was, then no.

Question 14

Can I put a Mechanic Lien on a Documented Vessel?

Accepted Answer

Yes you may however Maryland DNR will not issue a title.

Question 15

Can I do a Mechanic Lien on an Impounded vehicle?

Accepted Answer

Yes. If you contacted owner of the vehicle and he requested that you fix something on his vehicle. Otherwise, no you cannot. You have to do some kind of work to the vehicle.

Question 16

If I would like to put a bid on a vehicle or vessel what do I need to do?

Accepted Answer

First thing you can do is to download a Bid Form. It is in .PDF format. Read the instructions on the form. If you have any other questions please feel free to call the office at: 1-800-398-2602

Question 17

What are the taxes based on getting a title?

Accepted Answer

Taxes for vehicles are based upon the year and make of the vehicle. Any vehicle 7 years or later is 6% of NADA book value. If the vehicle is over 7 years old, there is a $100 title fee and $38.40 tax fee - Total due: $138.40.
Taxes for any vessel or PWC are 5% of your lien amount.

Question 18

Why is a lien cheaper online?

Accepted Answer

Well when doing a traditional lien, the representative would have some out of pocket expenses such as gas and other costs associated with the lien.
When doing a Lien Online, it takes all of those factors out of the equation to bring you a lien at an affordable price!

Question 19

Would you take a business check or money order instead of a Credit Card

Accepted Answer

Absolutely! If you want to pay by business check or money order, please contact the office either by email or call us at: 1-800-398-2602.
Once we receive payment, we start the lien process.

Frequently Asked Questions

What is a Mechanic Lien?

What are my rights under the law?

Why does the vehicle or vessel need to be auctioned?

How does the auction work?

Why do I need to provide my Federal Tax ID number?

My business must be in "Good Standing" with the state of Maryland. What does that mean?"

What are my rights under the law?

I got an OK to do the work, but no signed repair bill, is that ok?"

How long must the repair order be overdue?

How long does the Mechanic Lien process take?

Can I do a Mechanic Lien just for storage?

I bought a car at an auction without a title, Can I place a Lien on it?"

I have a vehicle abandoned on my property, can I file a lien on the vehicle?"

Can I put a Mechanic Lien on a Documented Vessel?

Can I do a Mechanic Lien on an Impounded vehicle?

If I would like to put a bid on a vehicle or vessel what do I need to do?

What are the taxes based on getting a title?

Why is a lien cheaper online?

Would you take a business check or money order instead of a Credit Card

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