What in the heck is a construction lien???
 We said we needed time to figure out if it was even possible to put this kind of lien on a house... and I am hoping someone here might know.  How do I always end up being the "one" to go to??? |
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| I'm sure these are regulated state by state and they vary depending on where you live, but there is such a thing as a construction lien. The contractor files a lien against the property with the court, and the order decrees the contractor is paid out of the proceeds of the sale of the property. Sometimes a lien large enough may be able to force the sale of the property, but I doubt that's what we're talking about in this case. Regardless, one the taxes are filed, it only takes a week or two for a return to be deposited. So the bill could technically be paid before the ink is dry on the lien. In other words, there is no need for a loan. Let them file the lien, let the friend respond to the lien by stating they are paying with their tax return, and keep it between them. There is no reason to get involved. |
| Humm... we are talking less than 2,000, so I can't imagine the property being sold for that amount... Good information, along with the correct spelling of "lien" LOL. ( I fixed my original post) Will they be served if the the contractor goes through with his threats? How long does it take to file? Also, what is the advantage of a lien such as this, if it doesn't force the sale of something to generate cash for a payoff of goods or services? I am in an area of the law that I have never treaded before, and I want to make sure I have all of my thoughts together when I make the big "No" call tomorrow morning. |
Abuckie wrote: Will they be served if the the contractor goes through with his threats? How long does it take to file? Also, what is the advantage of a lien such as this, if it doesn't force the sale of something to generate cash for a payoff of goods or services? I am in an area of the law that I have never treaded before, and I want to make sure I have all of my thoughts together when I make the big "No" call tomorrow morning. Well, I can't speak to any specifics for your particular jurisdiction, but typically if anybody files suit against you, you are served. The advantage to the contractors for having such a lien is that eventually, they get paid. Even if there is no sale for years, they are guaranteed to be paid at some point. There has to be an order decreed as well - simply filing the lien is just step one of the process. |
| although not an expert on ohio, you typically can't file a lien without a judgement from a court. so i believe the contractor is jumping the gun as a scare tactic. the tax return would be back long before a court date would be assigned if even by a local magistrate. if the contractor did file such a suit, your friend would be there to defend themselves and explain. it would also no doubt be resolved before hearing happened. has your friend learned not to trust verbal now? |
| I'm going through this at the moment. Urg! The rules might be different as I'm in Canada. In a nutshell we hired a contractor to work on our home. Did all the research and posted work that needed to be done on a reputable site that matches up contractors with homeowners. We interviewed 3 that contacted us, checked his company with BBB, interviewed former client and visited 2 of his jobsites plus his office. Sounds as if we had it all covered right? Nope...after remorgaging our home and getting a loan ...paying him faithfully on time...we found out later he didn't pay the subcontractors...roofer, engineer, garage door guy, electrician and even his own guys. They then stopped working on our house and left electrical live wires hanging in the garage, huge holes in the garage ceiling with water pouring in, exposed 2 exterior walls to the elements for 6 months..my home is a wreck. According to Canadian Law the subcontractors are entitled to sue the homeowners for their loss. The roofer showed up at my home with "heavies" so that I had to go to the police to stop his harrassment. He then placed a lien on our home...for 3 times the amount that was stated on the cost of the roof job. In order to deal with it...we had to get a lawyer as we had to respond within 3 wks. The lawyer cost us 2500 so far. That is the cost for 1 subcontractor, let alone now suing the contractor to recoup our monies and for the damage caused to our home. I'm so sick about this I rarely talk about it as the money involved is huge and will take us 10 yrs to pay back. The reason we did it was to turn our house into an official animal rescue but the "scum of the earth" as I refer him as, ruined our dreams. However, being an optomist I refuse to let this get me down and figured this place and the animals are worth fighting for. Sorry for getting off the topic in regards to your question. As far as I know liens can be on the home for 1 yr then are removed and only effects the homeowner if they were going to sell. It is usually used as a scare tactic to get the homeowner to pay up. Your friends should check online to see what the rules are in their state but the legal talk is often confusing. Our subcontractor has no leg to stand on regarding his legal issue as we have proof we paid for the job that was done and did not have any contract with him at all but it was the contractor that hired him and we paid him in good faith. We also found out he was the one that did the engineer work on our home and was not licenced to do. It's a long story but we now have to counter sue him for the damage as we have structural damage to our home besides the other damages. urg! Sorry don't mean to ramble on about that and apologies as you asked a question regarding your friend. Liens are placed to protect contractors and subcontractors for jobs that they have done but not been paid for. They could have filed in small claims court and paid a small fee to get the paperwork done. Your friends may have to go to court but if they had a verbal agreement and it was done in good faith - the courts might see it their way. In Canada we found out that Small Claims would have referred it to Supreme Court as they are the ones to deal with property issues..it may be the same in your area. Again, I'd advise your friends to check online to see what is involved in their particular region. They may also be able to get advice from legal library sites or students of law who sometimes answer questions via phone or for small fees. Good luck to your friend! Marianne |
| Marianne - you need to contact Mike Holmes! Seriously! |
| racquel' is he british columbia's version of clark kent? i hope.  |
No he fixes homes after bad contractors screw them up and has a couple TV shows that chronicle the process. And he loves animals.  http://en.wikipedia.org/wiki/Mike_Holmes http://makeitright.ca/ |
| Sadly,mike holmes only does his shows out if the Toronto area and only on home inspectors not contractors. Yup have looked into it. Marianne |
| I didn't know it was Toronto, but there are two shows -- the new one, Holmes Inspection, is the inspectors one, but the other is Holmes on Homes and that one is about fixing what contractors mess up. Too bad its not in your area! |
| Oh Marianne-- How AWFUL for you. Even when you do all the right things to protect yourself, it seems you just never know what people are made of... Sorry you are going through this!! |
| Marianne, have you shot him a letter not just checked up on it? I think I have seen him do shows from other areas. Its worth a shot...throw in the animal rescue, human interest. |
| Why would this be a construction lien? They have not refused to pay, it is the agreement of when they agreed to pay(ie after tax check). Seems like he should be in small claims court if they were refusing to pay. How is it they can not work out with him a reasonable monthly payment until they can pay it off ,if it is only $ 2000. Frantic friend needs to consult with an attorney. Frantic friend need to consult with a banker.... |
zahra wrote: Why would this be a construction lien? They have not refused to pay, it is the agreement of when they agreed to pay(ie after tax check). Seems like he should be in small claims court if they were refusing to pay. How is it they can not work out with him a reasonable monthly payment until they can pay it off ,if it is only $ 2000. Frantic friend needs to consult with an attorney. Frantic friend need to consult with a banker.... All good questions... |
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