While you don’t have to actually file a notice of lien in every state, it’s also a good idea to do so, but there are some states that actually require one. If you’re working on a public works construction, federal, or state project you do not have to file a NOI.
Conclusion: So, Which One Do I Need?
The truth is, it’s a good practice to utilize both of them, and you actually have to in approximately 9 states in America. Therefore, you’ll want to make sure that all of your grounds are completely covered. If you should fail to file these required documents (or even show proof of them), then you can actually have your rights to file a mechanic’s lien denied in the event of nonpayment, which can put a lot of hurt on you.
Also, be aware that in some states where it is required, you can not only lose your rights to file a claim, but even be fined for not filing all of the necessary forms that you should have to let your customer know that if you don’t pay that you will file a claim.