If you are not familiar with the term, a lien is a legal claim that is made by one person on the property of another to secure the payment of a certain debt. Construction liens NY area happen when a contractor has finished a certain project and the owner of the construction has not paid for it. It is also possible for subcontractors to place a lien on your property even if you paid the contractor, but he did not pay the subcontractors.
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 thus important that one avoids liens. It is a requirement in law that before the contractor begins a project, he puts up a notice. This notice usually tells what kind of work will be done, the cost evaluation and other information that is related to the project. This notice is usually filed with the local clerk. It is expected that upon completion of the work, the contractor files an acceptance. With this, the contractor can hold the property if he has not been paid.
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 that one can ensure that they are protected is by signing a lien waiver. This will state that the contractor or subcontractor has been paid and as such, you do not owe them any money and cannot thus exercise any lien.
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 thus important that one avoids liens. It is a requirement in law that before the contractor begins a project, he puts up a notice. This notice usually tells what kind of work will be done, the cost evaluation and other information that is related to the project. This notice is usually filed with the local clerk. It is expected that upon completion of the work, the contractor files an acceptance. With this, the contractor can hold the property if he has not been paid.
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 that one can ensure that they are protected is by signing a lien waiver. This will state that the contractor or subcontractor has been paid and as such, you do not owe them any money and cannot thus exercise any lien.
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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