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1. F Scott Wilson
   Member

   Reputation:267

    

   I have a customer who is going to be performing work on-site, and will take delivery of our materials (cement), again on-site. Usually, that's a slam dunk for us being able to protect our security interests, since we know exactly where the product is being delivered and can show that we have provided materials for improvements.

   But wait, there's more....

   Our customer will be working for a local cemetery, and fabricating coffins. I suspect these are actually vaults, placed in the ground, into which a coffin is lowered, and a lid placed on top, keeping out dirt, bugs, and so forth.

   Here is my question. Would concrete vaults be considered a property improvement, and would we have lien rights?

   Posted 1 year ago #

2. ajackson
   Member

   Reputation:1

    

   Hi Scott,

   This is simply one of those cases that can be argued. I would file a prelim and in the event you don't receive payment, I would go forward with a mechanics lien. The cement and underground vaults are attached to real property and more than likely considered property improvement. If you have any other questions, please feel free to contact me at (702) 259-2622 ext 4334 or email me at ajackson@emailcma.org

   Posted 1 year ago #

3. F Scott Wilson
   Member

   Reputation:267

    

   We are already planning to pre-lien, and are working on a joint check agreement with the cemetery and our customer, to ensure we're paid at the same time our customer gets their money.

   Thanks for your input on this.

   Posted 1 year ago #

4. Guy Nishida
   Member

   Reputation:65

    

   Scott,

   Sounds like a fun technical question. I know nothing of lien laws but I was wondering if the vaults are treated as taxable improvements and depreciable under real property guidelines versus, say a car or a computer used in a business. Would that impact whether or not they were considered improvements to real property for lien purposes? Also, if the laborers fabricating them could file a lien, that would seem to bolster your downstream position to be in the same boat.

   Posted 1 year ago #

5. Guy Nishida
   Member

   Reputation:65

    

   Scott,

   I still think your question is fun. In that spirit: in the case of a cemetery plot, who owns the plot? Is it the cemetery or an individual? Is the improvement considered for the benefit of the cemetery or the individual plot? Is the cemetery acting as a contractor for the plot owner, presumably obligated at the time of the plot's sale? Having never purchased a plot I don't know if you own the land or just rights to use/occupy it under certain conditions. Or do you actually get some sort of deed to sub-divided property. Technically, does this affect where you file a lien?

   Posted 1 year ago #

6. F Scott Wilson
   Member

   Reputation:267

    

   Guy--

   Generally, people purchase the plot itself, but since it can't be freely sold after the passing of the owner, since he/she is presumably interred there, I'm not sure that it's an actual sale, or a permanent license to use the space. Certainly, the cemetery is responsible for the upkeep of the grounds. I don't think the cemetery would be acting as the contractor for the client; more like an agent, I think. It would *not* affect where a lien is filed, since that is always in the county where the property is, at least in the case of real property, which is unlikely to be moved from one county to another.

   Posted 1 year ago #

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