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 therefore important to avoid a construction lien at all costs. When starting a construction project, contractors are required by law to give a notice of contract. This states the type of work that is to be done, costs and related information. This is filed with the local clerk. When the project is completed, the contractor files an acceptance. This allows them to place a lien if payments are not made for the work done.
Before the contractor files a lien, they have to let 60 days lapse from the time of completion. The notice that they give is the lien. Every contractor needs to ensure that their acceptance is well signed and this will only be so in the case that the contractor is satisfied that his dues have been settled.
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.
It is also advisable that as the owner you make all payments yourself. Also ensure that you get all he receipts. There will be material that will first go through the hands of the contractor or subcontractor. For that material, one cannot exercise lien against you.
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.
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 therefore important to avoid a construction lien at all costs. When starting a construction project, contractors are required by law to give a notice of contract. This states the type of work that is to be done, costs and related information. This is filed with the local clerk. When the project is completed, the contractor files an acceptance. This allows them to place a lien if payments are not made for the work done.
Before the contractor files a lien, they have to let 60 days lapse from the time of completion. The notice that they give is the lien. Every contractor needs to ensure that their acceptance is well signed and this will only be so in the case that the contractor is satisfied that his dues have been settled.
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.
It is also advisable that as the owner you make all payments yourself. Also ensure that you get all he receipts. There will be material that will first go through the hands of the contractor or subcontractor. For that material, one cannot exercise lien against you.
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.
About the Author:
Discover the top advantages of using construction liens NY area by referring to the main page. Take a quick tour of this website now at http://nymechanicsliens.com.
No comments:
Post a Comment