Questions concerning contractors lien

[KimmyD1966]

I hired a contractor to replace the roof on my home...it was an insurance claim....I purchased the materials with the contractor there and paid in full....I paid him 1/2 down....halfway through the the job I paid another 1/4....he finished yesterday....June 20, 2016 around 3 pm while I was at work....he's harassed me by text and phone demanding the balance...I've agreed to pay him half of that now and half as soon as I recieve payment by my clients....he says unless I've paid in full by Saturday June 25, 2016 he will file a lien against my property....there are no signed contracts.....nothing has been issued in writing.....can he file a lien that quickly when I've paid in good faith so far??? I'm in indiana

 

[justalayman]

Paid in good faith?

If the job is done, payment in full would be payment in good faith.

 

[LdiJ]

I hired a contractor to replace the roof on my home...it was an insurance claim....I purchased the materials with the contractor there and paid in full....I paid him 1/2 down....halfway through the the job I paid another 1/4....he finished yesterday....June 20, 2016 around 3 pm while I was at work....he's harassed me by text and phone demanding the balance...I've agreed to pay him half of that now and half as soon as I recieve payment by my clients....he says unless I've paid in full by Saturday June 25, 2016 he will file a lien against my property....there are no signed contracts.....nothing has been issued in writing.....can he file a lien that quickly when I've paid in good faith so far??? I'm in indiana

Yes, he certainly can. You should have paid him the remaining 1/4th as soon as he was finished. Making him wait at all is totally inappropriate.

 

[single317dad]

Agreed; unless you negotiated terms such as Net 30, then payment in full is expected upon completion of service.

That said, he'd likely be waiting a while if he took this to court. Perhaps a little tact on his part should be called for, as suing someone is neither a fun nor a quick process.

You should try to pay this contractor as quickly as possible and avoid a lawsuit, which would leave you owing more than you do now.

 

[LdiJ]

Agreed; unless you negotiated terms such as Net 30, then payment in full is expected upon completion of service.

That said, he'd likely be waiting a while if he took this to court. Perhaps a little tact on his part should be called for, as suing someone is neither a fun nor a quick process.

You should try to pay this contractor as quickly as possible and avoid a lawsuit, which would leave you owing more than you do now.

He is not threatening to sue, he is threatening to put a contractor's lien on the property. He does NOT have to sue to do that. I personally do not like the fact that contractors can do that without a court order in Indiana, but nevertheless, its industry/legal standard.

I have had contractor's liens put on my house multiple times because the contractor I hired did not pay his subcontractors. It was ALWAYS a major pain in the behind to resolve the issue.

 

[latigo]

He is not threatening to sue, he is threatening to put a contractor's lien on the property. He does NOT have to sue to do that. I personally do not like the fact that contractors can do that without a court order in Indiana, but nevertheless, its industry/legal standard.

I have had contractor's liens put on my house multiple times because the contractor I hired did not pay his subcontractors. It was ALWAYS a major pain in the behind to resolve the issue.

In the first place they are not contractor's liens. They are known as "mechanic lien laws"!

Furthermore, they are not an "industry standard"! They are a universal legislative standard!

Also interesting to note is the contrast between you that dislikes them and the person that first drafted, introduced and promoted their passage into legislation - Maryland 1791 shortly thereafter to be adopted by all of the states - was also responsible for authoring another historic document: The Declaration of Independence!

Laws which Jefferson wisely and correctly believed would promote the expansion and development of land freely accessible, yet hampered by a tight credit market and the high cost of material and supplies.

If it escapes you as to why these law that you so abhor were beneficial in the development of a nascent country, it is because it eased the risk to be taken by people employed to furnish the needed labor and material.
__________________

ALSO, lets talk about these unpleasant experiences of yours with subcontractors placing mechanics liens on your property. You know those experiences that place you at odds with the third person to occupy the office of president (1801-1809).

Do you think I'm completely daft and do not vividly recall some years back when you falsely pronounced that under Indiana law subcontractors were not afforded lien rights?!

[SUP]When attempting to prevaricate it is always wise to possess a certain measure of memory. [/SUP]

 

[single317dad]

The mechanic's lien is not some Draconian tool of torture; it is simply a vehicle to prevent sale of property without first addressing the dispute between the party who performed the work, and the party who received the benefit of the work. It is not a judgment, and does not preclude a lawsuit and separate judgment.

The State of Indiana has provided a layman's explanation of mechanic's liens here (though, beware, the answer simplified is sometimes less precise):

http://www.in.gov/dfi/2485.htm