Construction Lien

[AJackson]

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The drywall sub should have had to pay before receiving materials...this just doesn't sound normal. A supplier is never under contract. Liens typically deal with those under contract Owner-Contractor, Contractor-many subs. The sub shouldn't have a contract with the supplier.



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Actually what happened here is the norm. The supplier provide materials on credit and bill on the first with it due on the 10th. The subs also bill on first and when they get paid, they in turn pay the supplier. Sometimes guys do go under and a lien happens.

When I did a lot of subcontracting I might have 50K in month material cost delivered to 20 different sites. Financially and practically it wouldn't work to have to give them a check for every job upon delivery. The suppliers are going to have a certain percentage default, but if they didn't extend credit they would have zero business.

[Your Mom]

Thanks for everyone's help on this.

[niss]

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oh, a lien on your house doesn't do any to you or the house until you try to sell it.

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Or refinance or try to get a second mortgage or home equity loan. Don't know what the law is in Colorado, but in Illinois a mechanics lien is only good for 2 years.

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In all likelihood, on a private job your state's law requires that the lienor sue to foreclose his lien within a certain amount of time (usually a year) or his lien will expire. The result of such a suit is, technically, a sale of the property to satisfy the lien. While I am sure your case would never get this far, you should be aware that there can be more to a contractor filing a lien than simply hindering you from alienating your property.

[NicksDad1970]

In Tennessee a lein can only be filed against a residential homeowner IF that homeowner is acting as his/her own contractor.

Understand this, just because you received a lein that doesn't mean they can enforce it. Meaning they can send you that lein letter doesn't mean they can take you to court. It could easily just be that they are trying to scare you into paying the drywall bill.

[DMC0627]

I worked in credit/collections for a concrete company and this is what I was told by my boss. If the homeowner can prove the contractor was paid (canceled check, money order reciept) then we had to remove the lien and go after the contractor himself. I don't know if this is the law or just the company policy, but I think if you can prove you paid the contractor they would most likely remove the lien. Good luck.

[Seether]

I haven't read the other responses, but if he does not foreclose on the lien in like a 6month period of time the lien goes away and he is S.O.L. Look it up but there is a limit to how long they can have the lien without foreclosing before it goes away. So just bs about paying the guy or working something out for the 6months, then point and laugh when the lien goes away.

[prohornblower]

Or make a simple call to your contractor and make him take care of it. Keep in mind, somebody hasn't gotten paid. Stalling, then pointing and laughing is stupid. The supplier has a right to get paid...what did he do wrong?

Get the contractor to bark at his drywall sub, so that everyone gets their due. No need to be a jackass about it. Your advice is bad/pointless.

[RoundGuy]

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I haven't read the other responses, but if he does not foreclose on the lien in like a 6month period of time the lien goes away and he is S.O.L. Look it up but there is a limit to how long they can have the lien without foreclosing before it goes away. So just bs about paying the guy or working something out for the 6months, then point and laugh when the lien goes away.

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I am not certain this is correct, but even if it is, it won't work. If the company went through the trouble of filing a lien, they will certainly proceed to foreclose on the lien before time runs out.

This is stupid advice.

[niss]

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I haven't read the other responses, but if he does not foreclose on the lien in like a 6month period of time the lien goes away and he is S.O.L. Look it up but there is a limit to how long they can have the lien without foreclosing before it goes away. So just bs about paying the guy or working something out for the 6months, then point and laugh when the lien goes away.

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I am not certain this is correct, but even if it is, it won't work. If the company went through the trouble of filing a lien, they will certainly proceed to foreclose on the lien before time runs out.

This is stupid advice.

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With respect to the part I bolded, you could not be more wrong.

[BPA234]

I work in construction. Lien laws vary state to state and I do not know what Nebraska's laws require.

Most states require that the lien be filed within 90-days of last substantive activity. Some states also require that a notice to owner be filed prior to start of work.

Lien rights are relinquished when a lien is not filed within the specified time frame and/or without a notice to owner.

You may want to try and research the lien laws in your state by calling you local clerk of the court's office or the local public library.

If I were you, the first thing I would do is call my contractor and see if they would take care of the problem.

If the contractor refused, and I did not already have a lawyer, I would then consult a local, general practice attorney. If you don't know any attorneys, try and find one through your church or chamber of commerce. One who lists real estate and/or construction in their practice's description would be ideal.

Lien laws are fairly straight forward and you should be able to find an attorney who will answer your questions and write a letter to the drywall supplier for under $150.00 (1-hour).

Even if the lien is bogus, you will still need to get a release of lien from the supplier. Otherwise, until the lien expires or the lien release is filed, the lien will continue to affect your property.

Good luck.