Our Orange County construction lawyer is sometimes questioned about liens and how those will affect a project. Also called mechanic?s liens, these liens place a financial hold on the property if the supplier, contractor or builder is not paid for their work. In the event of a lien, the owner will not be able to transfer the title to the property.
Purpose of the Liens
Builders, suppliers and subcontractors effectively use construction liens to ensure that they will be compensated for the services that they provided. Failure to pay and the ensuing lien means that the property owner won?t be able to sell the property until they pay off their obligations. The lien holder then has an interest in the property, and if the lien is not satisfied, they can take the property title. Banks will not lend money, and buyers will lose interest because the property could be seized.
Differing Laws?According to States
Every state varies regarding mechanic?s lien laws, such as the type of notice given to the property owner, time frames, and the connection between the suing party and the property owner. For example, a property owner might even be held responsible if the construction company does not pay suppliers or subcontractors. In the event that you find yourself with a lien on your property, take it seriously. Do not just ignore the problem or think that it will resolve itself.
Contact Our Orange County Construction Attorney
A knowledgeable construction lawyer can provide you with counsel on what to do if a mechanic?s lien is placed on your property. For example, the lien might not have been correctly recorded or the notice might not have been submitted to you in a timely manner. Your attorney will understand these nuances of the law and might be able to discredit a claim against you as a result. He or she will also review what caused the lien in the first place in order to determine if you have any recourse against other parties. Finally, you can likely request reimbursement of your legal expenses if the courts rule in your favor.
If you have questions about construction liens and how we can help, contact Daily Aljian LLP, our Orange County construction lawyer.