Can a contractor Sue you for a lien?

The contractor could sue you for breach of contract in a separate proceeding even if you get the lien thrown out. The best way to protect yourself from a mechanic’s lien is with a lien waiver. This is a legal document furnished by the contractor or subcontractor at your request.

Can a construction lien force the sale of a house?

In a worst-case scenario, it can force a sale of the house to provide the compensation. A contractor or subcontractor can file a construction lien against a property if the owner has not paid for work done on it. A lien makes it difficult or impossible to sell or refinance a property.

What do I need to file a construction lien?

The terms and filing procedures for a construction lien vary by state. A written contract outlining the nature of the construction to be done, the materials to be used, and the agreed price for the work are often required for a construction lien to be filed.

What causes a construction lien in New Jersey?

The circumstances of the property and who contracted the work can affect a construction lien. For example, under New Jersey law if construction improvements are made to a leased commercial property, typically the property owner must also sign off on the construction.

Can a construction company Lien a materials supplier?

Only the materials that are already incorporated in the property can be liened by the supplier. This distinction is important especially in cases where the construction project has stopped due to bankruptcy, termination, or other special circumstances.

Can a material supplier sign a lien waiver?

A lien waiver that relinquishes a material supplier’s lien rights over materials that are yet to be furnished will not be enforceable. Consequently, if materials have already been delivered and a client requires a lien release waiver before releasing payment, always sign a “conditional” lien waiver.