How to file a construction lien

How long does a general contractor have to file a lien?

within 90 days

What proof do you need to file a lien?

Most states require at least your name and address; the name of the owner; the name of who you worked for; total value you contracted for and the outstanding amount owed to you ; and a description of the construction property you are filing the lien against.

Can I put a lien on my contractor?

A contractor , supplier, or other party is entitled to register a lien where they have: Done work or caused any work to be done based on an “improvement” in the land; or. Provided any materials to be used in that improvement.

How long does a construction lien last?

180 days

Can you put a lien on someone’s property if they owe you money?

If you have unpaid debt of any kind, this can lead the creditors that you owe money to place a lien on your assets. For example, if a person does not stick to a childcare maintenance agreement, a lien may be placed on their property in order to secure the outstanding amount of money .

Can you put a lien against a person?

You can claim a lien against personal property that has been left under someone’s possession, such as a rented storage facility, or if you have performed labour or service on it and have not been compensated. There is no requirement to register these types of liens in the Personal Property Registry System.

Can a subcontractor put a lien on my property?

Legally, an unpaid contractor, subcontractor or supplier can file a lien (sometimes called a mechanic’s lien ) that could eventually force the sale of your home in place of compensation. Conversely, if the contractor who worked on your project does not pay for materials, a supplier could place a lien on your property .

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Are you liable for subcontractors?

Many sub-contracts contain clauses requiring the subcontractor to indemnify you as the head contractor for its liability for death, injury or damage caused by the subcontractors . Beware however – this does not automatically mean you are free and clear of all responsibility for the actions of your subcontractors .

When can a subcontractor file a lien?

Subcontractors can file liens against homeowners when they fail to receive payment for their services. Although general contractors who hire subcontractors are typically responsible for paying them, subcontractors can demand final payment from homeowners.

What can I do if my contractor is taking too long?

If your contractor is dragging his feet, follow these tips: Document Communications. It’s best for homeowners to communicate with contractors in writing so there is a record of the conversation. Keep A Record of the Timeline. Do Not Make Remaining Payments. Hire A New Contractor . Take Legal Action.

Can you refuse to pay a contractor?

You need to make sure the contract legally allows you to withhold payment in certain circumstances. For example in the construction industry, the security of payment laws do not allow contractors to withhold payments to subcontractors just because principals are also withholding payment to contractors .

Can I withhold money from a contractor?

You can withhold payments from a subcontractor if he does not perform the job in the time frame specified by contract. Most contracts contain penalties for every day that the contractor completes a job later than outlined. In addition, you may suffer damages as a general contractor .

Does a lien ever expire?

It depends on the type of lien and the type of property. A judgment lien will expire in 7 years, unless renewed. A voluntary lien , like a mortgage, deed of trust, or car loan may never expire . Most liens can be renewed before they expire , and so can technically, like a Vampire, live forever.

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What happens when there’s a lien on your house?

The lien gives the creditor an interest in your property so that it can get paid for the debt you owe. If you sell the property , the creditor will be paid first before you receive any proceeds from the sale. And in some cases, the lien gives the creditor the right to force a sale of your property in order to get paid.

How do I fight a mechanics lien on my property?

The homeowner may petition the courts under Civil Code Section 8480 in California to remove the mechanic’s lien when it is not timely issued or recorded. A lawsuit is usually necessary to file it against the owner by the contractor or subcontractor.