Hey there,
So this happened with my sister. She bought a new home and they got it remodelled as per their wish from their contractor but the contractor did not pay the supplier of all the remodelling material. As a result the supplier imposed a mechanics lien on my sister and her husband. Although they weren’t the ones who missed the payment of the amount, they still faced the lien because the house was remodelled in their name and the house was also in their name. So, if you are wondering what is mechanics lien, let me help you with it.
Hire the expert Interior Designers of NoBroker and avoid any contractor interference in the remodelling of your home. Facing legal issues like a mechanic lien? Get in touch with the legal experts of NoBroker to understand the implications and solution to such issues.What Is Mechanics Lien?
A mechanics lien is a claim against a property of a legal nature. Subcontractors and suppliers sometimes use mechanic's liens when they haven't been paid for property modifications they did. They serve as a means of requesting payment for services done on house improvements or remodelling.
For the case that I explained related to my sister’s home remodelling, most homeowners might be surprised to learn that it makes no difference if you previously paid the building contractor for the remodelling. The law gives the subcontractors the right to pursue you and the real estate that was improved if the general contractor fails to pay the subcontractor or supplier.
How to avoid Mechanics Lien?
Option 1: Pay With Joint Checks
Writing a series of checks jointly made out to the construction manager and the specific subcontractor or supplier is one technique to make sure that contractors and suppliers are paid. The ultimate beneficiaries must sign the checks before they may be cashed. This makes sure the supplier or subcontractor gets paid.
Option 2: Get a Lien Waiver
Having the contractor include a lien release provision in the construction contract is another strategy to prevent mechanic's liens. This would free up the property owner from having to pay everyone that the contractor is accountable for paying. Before taking additional payments from the owner, a contractor is frequently required to give a clearance for all activities for which the subcontractor has already been paid.
Option 3: Pay Subcontractors/Suppliers Yourself
Although it's usually not the best choice, you can pay suppliers and subcontractors directly and subtract those sums from the contractor's total. The problem with this strategy is that you might come off to the supplier or subcontractor as the employer. It is advised that you test the first two possibilities before even thinking about this, in order to avoid any uncertainty.
So, I would suggest you to always keep all the receipts and documents you receive from the contractor for the services they provide to you in order to avoid a mechanics lien.
Read More: What is Lien in Real Estate?
What is Mechanics Lien?
Tripti Chauhan
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2 Year
2022-06-27T10:52:36+00:00 2022-06-27T10:52:37+00:00Comment
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