If you are not familiar with the term, a lien is a legal claim that is made by one person on the property of another to secure the payment of a certain debt. Construction liens NY area happen when a contractor has finished a certain project and the owner of the construction has not paid for it. It is also possible for subcontractors to place a lien on your property even if you paid the contractor, but he did not pay the subcontractors.
At all times, liens should be avoided as they have so many disadvantages. For example, if the work is not complete and you need finance to complete it, getting a loan from the bank is not a walk in the park for property that has a lien. Even for buyers shopping for property, any property with a lien raises a red flag for them. You may even find the mortgaging company blacklisting that property after declaring the mortgagee a defaulter. They may even go to the extreme of getting that property from the owner.
It is thus important that one avoids liens. It is a requirement in law that before the contractor begins a project, he puts up a notice. This notice usually tells what kind of work will be done, the cost evaluation and other information that is related to the project. This notice is usually filed with the local clerk. It is expected that upon completion of the work, the contractor files an acceptance. With this, the contractor can hold the property if he has not been paid.
The contractor cannot file a lien immediately after the completion date but he has to allow at least 60 days to be over. Once they give the notice, it will act as the lien. The acceptance needs to be duly signed and this should indication that they have been paid.
There are several things that you can do to avoid these liens. First, insist that the contract be worded to state that the contractor will be responsible for all the work liens that they authorize. This will pass on the responsibility paying the bills and dealing with the unknown liens to the contractor.
When you authorize work, ensure that you personally pay for it. All purchases need to be receipted and filed also. In case you are concerned about property that first gets to the contractor or subcontractor before getting to the site that is not subject to lien.
Another way to avoid trouble is insisting for the signing of a lien waiver. This is signed by the suppliers and contractors on a construction project. They are supposed to indicate that all payments have been made and that a lien cannot be filed against your property.
If you have a lien filed against you, you will need to bring in a professional on board who will do what they can to free your property. You should not delay this as it matters a lot when it comes to your credit score and will also protect you from being blacklisted.
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Author: Deborah HowardThis author has published 2 articles so far.