Whenever one owes another a debt and that person holds their debtors property legally, that is what is called a lien. On matters to do with construction liens NY area, they occur in cases where the contractor has not been paid their dues and yet they have completed their work. Subcontractors also have this right in the case that they have not been paid by the contractors even when the contractor was already paid for the work.
Liens are not pleasant and they should be avoided at all times. Your property may not be complete for example and you need to get more finances from the bank but because there is a lien, getting the finances becomes a challenge. When buyers are looking around for property to buy, property with encumbrances such as lien are usually avoided. You may even find that the company mortgaging that property has declared you a defaulter and may even repossess that property.
It is therefore important to avoid a construction lien at all costs. When starting a construction project, contractors are required by law to give a notice of contract. This states the type of work that is to be done, costs and related information. This is filed with the local clerk. When the project is completed, the contractor files an acceptance. This allows them to place a lien if payments are not made for the work done.
The contractor cannot file a lien immediately after the completion date but he has to allow at least 60 days to be over. Once they give the notice, it will act as the lien. The acceptance needs to be duly signed and this should indication that they have been paid.
There are several things that you can do to avoid these liens. First, insist that the contract be worded to state that the contractor will be responsible for all the work liens that they authorize. This will pass on the responsibility paying the bills and dealing with the unknown liens to the contractor.
When you authorize work, ensure that you personally pay for it. All purchases need to be receipted and filed also. In case you are concerned about property that first gets to the contractor or subcontractor before getting to the site that is not subject to lien.
Another way to avoid trouble is insisting for the signing of a lien waiver. This is signed by the suppliers and contractors on a construction project. They are supposed to indicate that all payments have been made and that a lien cannot be filed against your property.
In case you have such a case, you need to get a professional to help you to deal with it. Their work will be to get your property freed. It is important to do this as soon as you can as it will affect your credit score which could see the property being blacklisted.
Liens are not pleasant and they should be avoided at all times. Your property may not be complete for example and you need to get more finances from the bank but because there is a lien, getting the finances becomes a challenge. When buyers are looking around for property to buy, property with encumbrances such as lien are usually avoided. You may even find that the company mortgaging that property has declared you a defaulter and may even repossess that property.
It is therefore important to avoid a construction lien at all costs. When starting a construction project, contractors are required by law to give a notice of contract. This states the type of work that is to be done, costs and related information. This is filed with the local clerk. When the project is completed, the contractor files an acceptance. This allows them to place a lien if payments are not made for the work done.
The contractor cannot file a lien immediately after the completion date but he has to allow at least 60 days to be over. Once they give the notice, it will act as the lien. The acceptance needs to be duly signed and this should indication that they have been paid.
There are several things that you can do to avoid these liens. First, insist that the contract be worded to state that the contractor will be responsible for all the work liens that they authorize. This will pass on the responsibility paying the bills and dealing with the unknown liens to the contractor.
When you authorize work, ensure that you personally pay for it. All purchases need to be receipted and filed also. In case you are concerned about property that first gets to the contractor or subcontractor before getting to the site that is not subject to lien.
Another way to avoid trouble is insisting for the signing of a lien waiver. This is signed by the suppliers and contractors on a construction project. They are supposed to indicate that all payments have been made and that a lien cannot be filed against your property.
In case you have such a case, you need to get a professional to help you to deal with it. Their work will be to get your property freed. It is important to do this as soon as you can as it will affect your credit score which could see the property being blacklisted.
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