Wondering what is mechanics lien? Let me clear it; subcontractors and suppliers typically use mechanics liens and they are the legal claim against property that has been remodeled or improved. For instance; if you are remodeling your kitchen and the supplier who supplied the kitchen materials is not paid by general contractor, a lien can b placed against your house so as to recover the money.
It does not matter if you have already paid the gnarl contractor for the kitchen materials. If the supplier is not paid by the general contractor the subcontractors are allowed to come after you and the property that was improved. At the end you have to pay twice for the work or also you may be forced to sell your house. To stay away from such stuffs all you need is to understand how the mechanics lien works and how to avoid them.
Working process:
- A notice must be provided of what is being contributed by the subcontractor or supplier who is not in contact with the homeowner directly, within 20 to 30 days of contribution.
- A notice of commencement is designed to formally set the launching date of a project or the date on which you first provided materials or labor.
- If the payment is not been done to the supplier or subcontractor, they must file a claim of mechanics lien in the county where the property is located.
- Two to six months is given to the subcontractor or supplier for working for a solution with the property owner or file a law suit.
- To make sure that the suppliers get paid, you should write a series of checks made out jointly to the general contractor and a particular supplier.
The lien is not effective in most of the states, if the law suit is not filed in time. On the other hand, to worth your time to get a court order to clear your property of the lien, or else it would be difficult for you to sell the property.
