A contractor’s lien is usually placed on a building as a result of unpaid services or bills. If a contractor hires a subcontractor to paint a building and fail to pay the agreed amount, they can have a lien placed on a property until the amount is paid. Basically, a lien prevents the sale of a property without paying the amount owed subcontractors and contractors. A lien’s life varies from one state to another. In some states, lien’s life can extend to more than six years. Nevertheless, it’s possible to stop or prevent a lien.
Pay for the Provided Services
One of the major causes of contractor’s lien is unpaid bills. The issue gets more complex when some bills have not been paid and the contractor shows dishonesty. Therefore, to stop or prevent a contractor’s lien, always pay for the rendered services. Additionally, get signed receipts to prove your full payment.
Make Proper Arrangements with Your Contractor
In most cases, contractors file notices. This implies that the contractor will send you a copy of the notification telling you that they intend to file alien on the property. To stop a contractor’s lien, call the contractor before they make their intentions real. Contact your contractor immediately you receive the notification to discuss a way out.
Get Payment Settlements or Arrangements in Writing
Once you receive a contractor’s lien notification and make arrangements with your contractor, come up with a written agreement and sign it both of you. This will ensure that the contractor can’t pursue a lien or get it after you adhere to your agreed arrangement.
Get an Affidavit
Make sure that the contractor signs an affidavit declaring that all subcontractors under them are paid before you make the final payment. If you pay a contractor and they do not pay subcontractors, they can place a lien on your property. To avoid this ensure that all subcontractors that worked on your property have been paid.
If unable to prevent or stop a contractor’s lien, seek help of an experienced attorney.