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.
Before the contractor files a lien, they have to let 60 days lapse from the time of completion. The notice that they give is the lien. Every contractor needs to ensure that their acceptance is well signed and this will only be so in the case that the contractor is satisfied that his dues have been settled.
On the part of the project owner, one needs to protect themselves. One of the ways to do this is to have a clause in the contract indicating that when one authorizes a lien, they will be responsible. This means that the bills will be upon them and they will also take matters that will deal with unknown liens.
You as the owner of the property should ensure that you personally pay for all the material that is delivered to the property. Also, keep all the receipts to the purchases that you make. Material that is delivered to the contractor or subcontractor first before being delivered to the property cannot cause a 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.
Those are just a few of the tips that can help you avoid liens. It is important to get the help of professionals in dealing with issues related to the lien when they occur. These are the people who will free your property. Note that leaving a lien issue unresolved affects as much your credit score, which means that it should be avoided regardless of the cost at which you will do it.
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.
Before the contractor files a lien, they have to let 60 days lapse from the time of completion. The notice that they give is the lien. Every contractor needs to ensure that their acceptance is well signed and this will only be so in the case that the contractor is satisfied that his dues have been settled.
On the part of the project owner, one needs to protect themselves. One of the ways to do this is to have a clause in the contract indicating that when one authorizes a lien, they will be responsible. This means that the bills will be upon them and they will also take matters that will deal with unknown liens.
You as the owner of the property should ensure that you personally pay for all the material that is delivered to the property. Also, keep all the receipts to the purchases that you make. Material that is delivered to the contractor or subcontractor first before being delivered to the property cannot cause a 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.
Those are just a few of the tips that can help you avoid liens. It is important to get the help of professionals in dealing with issues related to the lien when they occur. These are the people who will free your property. Note that leaving a lien issue unresolved affects as much your credit score, which means that it should be avoided regardless of the cost at which you will do it.
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