lien

[rcowan]

i hired a contractor to put an addition on my home. i received a call a few weeks ago from a guy who was employed by the contractor and he said he was putting a lien on my home because a paycheck the contractor had written him bounced. i received a "notice of filing lien statement" from the county clerk's office today for $384. "for labor and/or materials furnished by said claimant upon the above described property under contract with..." it says we had a contract with this individual when in fact our contract was with his employer. am i liable? and if so, what's to stop anyone from putting a lien on my home anytime they want?

The big problem is that the contractor has been paid. We have receipts of all payments made to the contractor, but he has made some unwise business moves and seems to be facing bankrupcy. We are feeling very vulnerable here. When we hired this contractor we felt very comfortable because their ads stated they were licensed and bonded, plus they had a very good reputation in the small town that we live in. We are concerned that all of his employees will be trying to put a lein on our house now. We have been told that the DA is going to arrest this contractor for all of the bad checks he has written. Any suggestions would be appreciated.

[This message has been edited by rcowan (edited July 22, 2000).]

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by rcowan:
i hired a contractor to put an addition on my home. i received a call a few weeks ago from a guy who was employed by the contractor and he said he was putting a lien on my home because a paycheck the contractor had written him bounced. i received a "notice of filing lien statement" from the county clerk's office today for $384. "for labor and/or materials furnished by said claimant upon the above described property under contract with..." it says we had a contract with this individual when in fact our contract was with his employer. am i liable? and if so, what's to stop anyone from putting a lien on my home anytime they want?<HR></BLOCKQUOTE>

Yes you are liable if he in fact furnished labor and/or materials. Have a talk with the primary contractor.
Anyone that has liens rights can put a lien on your property anytime they want for any valid or bogus reason.

 

[Tracey]

Yes, you are liable to the laborer. Anyone who works on your house can assert a laborer's lien against your house instead of suing the contractor. Check your state's laws. Most states require laborers to take certain steps before filing a lien & require them to file the lien within 90 days of the last day they worked on the house. If the laborer missed the filing deadline, he can't sue you, as he has no contract with you. If he made the deadline, he has 9-12 months to foreclose on the lien or it expires.

Pay the laborer off & sue the contractor. Ask the DA to make the contractor pay restitution to YOU instead of the laborer, since you had to cover his bad check. You could even file charges yourself as a victim of his bad check. Check with the state licensing board to see if you can file a claim against the contractor's bond for reimbursement. In Washington, the State would give you $384 out of the contractor's bond & suspend his license until he brought the bond back up to the minimum balance.

You other option is to do nothing & wait to see if the laborer actually sues you to foreclose. If he does, you'll have to pay him then. Check to see if you'll have extra costs if you wait for him to foreclose. When you pay off the lien, you are entitled by statute to a Release of Lien, properly executed by the laborer & in recordable form. You then pay to record the release, which clears your title for future sale.

In future, record a notice of claims when you start any job. The notice requires any laborers to notify you they're providing services within 10 days of starting, so that you know who the potential lienants are. Also, require any contractor to provide you a list of who supplied materials or labor for the job, & signed releases from each & every one of them before you make final payment. The release is a defense you can raise if the laborer tries to record a lien.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.

[This message has been edited by Tracey (edited July 24, 2000).]