Get Results With A Construction Lien
On April 8, 2010
By Jennifer Smiley
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Possible Consequences of A Construction Lien
Most, if not all, property owners are unaware of the consequences of having a lien filed upon their property. Say they pay the prime contractor they hired in full and the contractor fails to pay those he has hired independently- the owner could still owe money to those workers even after paying the prime contractor.
How is that obligation enforced? Well, a number of possible ways.
If a lien is filed on a particular property and/or parcel number and the property is later sold, for example, money received in the sale could actually be tied up and placed in escrow because of a mechanics lien filing. Here are some other possible consequences of a mechanic’s lien:
- Sale can be forced on the property in order to pay for the debt (called a foreclosure of mechanics lien)
- Payment owed to contractor can be increased by attorneys fees and penalties
- Inability to borrow against the property or refinance
- Flag on the title of the property
Of course, each state is different in how mechanics liens are filed and treated. It’s important to consult with an attorney and the laws of your state to get a full grip on how the mechanic’s lien process can help you.
What’s Key to Filing a Mechanics Lien?
On a Construction Project… deadlines are everything. This is especially true when it comes to your companies right to file mechanics liens.
Is a preliminary notice due? How long do you have to file a lien? When must a lien be foreclosed?
Let us introduce to you an industry leading web-based lien document and deadline management solution: The Lien Pilot.
Our system is easy-to-use… and absolutely free. Track and control your project data, important lien and notice deadlines, project contacts and more. Here are a few features of our proprietary Lien Pilot:
- Automatically calculate lien deadlines, preliminary notice deadlines, and even create custom deadlines
- Get RSS Feed reminders when deadlines are due
- Manage project contacts, job-site data, legal property descriptions and more
- Manage lien documents
- Easy access to an Zlien Wizard who (for a flat fee) can prepare and file liens, notices, cancellations and more
Learn more about how our Lien Management software works on the “How Zlien Works” page.
