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tdexxx

The Mechanic's Lien

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Mechanic's Liens: anyone out there have knowledge of them? How do they work? If a contracting agency subcontracts some work and then goes out of business before paying the subcontractor, can the subcontractor file a lien against the improved property?

Thanks,

Tom

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I am not a lawyer so take this FWIW. Different states have different laws. The basic idea is that you did work that was installed on a building. You are not getting paid, either the customer direct or in a subcontractor arrangement. You have a certain amount of time to send a letter of intent to lien and file a lien on the property. Depending on who owns the property (tenant or owner) will pay you. The property cant be sold until lien is paid for. Part of the rub is the person may have paid for the sign and install but the seller or national provider is not paying you. Usually the notice of intent to lien will get you paid. People are sometimes quite pissed to find out the have to pay twice for a sign or install. People (customers) should be more diligent in asking for a lien waiver when giving final payment. I am sure SG adams or legal zoom should have the forms needed. BTW I checked recently with my Atty and he said that even bankruptcy does not remove this from the property. Good Luck.

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As a Licensed contractor of California and even doing work as a sub I'm required to send out a lien notice to all upon execution of a contract. If not, I can get in trouble with the Lic Board. Have I ever? Hardly, and my fault too. At the end of the contract I am then required to sign a Lien release to all.

Most SMART end clients will then want a Lien release from the contractor, the contractors subs and suppliers they bought from on credit so they don't get fucked by the contractor not paying their bills

But these days if I'm doing sub work for another sign co in the thousands range, you betcha I am!


You have enemies? Good. That means you've stood up for something, sometime in your life. - Winston Churchill

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In Indiana I think you have to file within 60 days of completion


Installation & Maintenance Services

Brian Phillips | expresssignandneon@sbcglobal.net | P. 812-882-3278

Express Sign & Neon | 119 S. 15th Street - Vincennes - IN 47591

express%20neon%20sig.jpg

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Guest Signtiffic

While this is not a fully comprehensive reference you can refer to your particular state in which you reside for a general idea. Also, please note that nearly every state offers legal assistance in this matter to some extent.

http://www.enotes.com/everyday-law-encyclopedia/contractors-liens

While I am very well versed in the various legalese dialects I must re-iterate that I am more than a mechanic less than a lawyer. As mentioned above always consult with an attorney. (Basic contracts can be modified to protect you based on the laws which govern your area for around $500. Thats 1-3 hours at $150 to $500 per hour.... WELL FREAKING WORTH IT)

A good dose of CYA is just good business.

No CYA....welll you deserve a :spank:

Edited by Signtiffic

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A couple years ago, we liened a customer on a job.... he ended up declaring total bankruptcy and never had to pay anyone a dime (over $600k to various contractors, ours was one of the smallest). I think that the lien was invalidated when the property reverted to the people who backed the construction (the money people). Anyway, we'll not see a dime.

And the guy responsible wants to open the same kind of business in the same county, different city, because he said he "learned his lesson". Unbelievable!

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In Arizona you need to file a pre-lien within a certain amount of time from the beginning of the project in order to file a lien for payment at the end of the project. And lien's go away when the property goes into foreclosure, learned that the hard way. The only problem is with the pre-lien, clients get freaked out when you send it to them because they think you are putting a lien on your property. You have to explain that you are just making it possible for you to place a lien on their property if they don't end up paying.

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