Can a construction company claim a lien on your property?

Every State permits a person who supplies labor or materials for a construction project to claim a lien against the improved property.

What do you need to know about filing a lien?

Filing a lien is a public declaration that someone hasn’t paid for contract work, and is a strong legal move to make. Before you jump straight to the decision that you want to file a lien, talk to the property owner and attempt to set up another plan. Be clear from the beginning of a job that you’ll file a lien if debts remain unpaid.

Can a contractor file a Mechanic’s Lien against you?

When contractors work on your property, they expect to get paid. If you don’t pay (or if a contractor fails to pay subcontractors—even though that’s not your fault), workers can file a mechanic’s lien with the county recorder’s office. 6 If somebody wins a lawsuit against you, they may become a creditor.

Can a lien be placed on a business?

Businesses typically work with other companies on credit, providing goods or services up front and billing for the payment later. If a company does not pay you for your work in a timely manner, you can place a lien against its property to recover the amount of your debt.

Can a contractor file a construction lien against a property?

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.

How to file a lien against a debtor?

File the judgment with the county clerk to place the actual lien on the debtor’s property. List the name of the debtor and all assets affected by the judgment. Recording the judgment serves legal notice that you have a claim against the property and prohibits the debtor from selling or transferring it without paying the debt.

How does a lien on a property work?

A lien on your house, mobile home, car, or other property makes your title unclear. To clear up the title, you must pay off the lien. Thus, creditors know that putting a lien on property is a cheap and almost guaranteed way of collecting what they are owed—sooner or later. How Do Creditors Collect on Real Property Liens?

What is the definition of a construction lien?

Reviewed by Will Kenton. Updated May 28, 2018. A construction lien is a claim made against a property by a contractor or other professional who has supplied labor or materials for work on that property. Construction liens are designed to protect professionals from the risk of not being paid for services rendered.