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.
Liens are not pleasant and they should be avoided at all times. Your property may not be complete for example and you need to get more finances from the bank but because there is a lien, getting the finances becomes a challenge. When buyers are looking around for property to buy, property with encumbrances such as lien are usually avoided. You may even find that the company mortgaging that property has declared you a defaulter and may even repossess that property.
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.
As the owner of the project, you need to protect yourself. From the beginning, ensure that the contract clearly states that for all lien authorized by the contractor, the contractor will be responsible. The importance of doing this is that it ensures that all bills are their responsibility and also matters relating to unknown liens are dealt with by them.
You as the owner of the property should ensure that you personally pay for all the material that is delivered to the property. Also, keep all the receipts to the purchases that you make. Material that is delivered to the contractor or subcontractor first before being delivered to the property cannot cause a 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.
Liens are not pleasant and they should be avoided at all times. Your property may not be complete for example and you need to get more finances from the bank but because there is a lien, getting the finances becomes a challenge. When buyers are looking around for property to buy, property with encumbrances such as lien are usually avoided. You may even find that the company mortgaging that property has declared you a defaulter and may even repossess that property.
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.
As the owner of the project, you need to protect yourself. From the beginning, ensure that the contract clearly states that for all lien authorized by the contractor, the contractor will be responsible. The importance of doing this is that it ensures that all bills are their responsibility and also matters relating to unknown liens are dealt with by them.
You as the owner of the property should ensure that you personally pay for all the material that is delivered to the property. Also, keep all the receipts to the purchases that you make. Material that is delivered to the contractor or subcontractor first before being delivered to the property cannot cause a 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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