Avoiding a House Lien During Remodeling

You probably have not heard about property lien especially in the context of home building and remodeling. However, contrary to what you think, this case happens frequently against someone’s property. And sometimes lien violation Miami can be a very difficult problem to deal with. It can lead you to do more effort and unnecessary expenses.

We will begin by defining what lien is. Lien is a notice that is attached to the property that informs the owner that they have the creditor’s money. Sometimes, they are used by contractors to make sure that anyone who hires them will pay them what they are promised. Any contractor, supplier, or subcontractor can file a lien that allows them to forcefully sell a house for the purpose of getting their compensation. The following are the cases where an owner can be sued of lien:

  • The owner of the house refused to pay the contractor for the job done and he/she files a lien against the property to get his/her compensation
  • If the contractor who was hired does not pay for the materials, the supplier could fire a lien on the property that was built

Some people might ask what makes a lien so destructive? A lien can make the property’s title cloudy. Also, when the time comes that the property needs to be sold, the owner needs to pay off the lien to clear the title. This is the easiest way that a contractor and subcontractor can do to make sure they get paid form the work they have done. They may or may not notify the owner that they are filing a lien, depending on laws and policies in each state.

To avoid a lien, one may do the following:

Have a complete list of the contractors, subcontractors, material suppliers, and laborers that have been contributed to the project or hired by the primary contractor, and make sure every one of them is paid and ask for some proof. if you overlook one or two individuals, you may be held liable.

Ask for a written agreement even if the estate you are into does not require it. The requirements for a written agreement may vary in each state. However, no matter what state you are into, make sure that the written agreement is clear and concise as to who, where, what, and when the cost has been made. Get an attorney to review the written agreement to make sure that things are going well.

Before the final or even partial payment is made, it is important that the owner asks for a Release of Lien and Affidavit. This can be proof that the contractor has already paid all the laborers or anyone who is still owed money. Also, when they are paid directly, it is still important that the owner asks for a release of lien.

As the owner, do not create and settle a final payment if the contractors for anyone who works for the project is not able to render what they have promised or if the project has not been finished.