If you are not familiar with the term, a lien is a legal claim that is made by one person on the property of another to secure the payment of a certain debt. Construction liens NY area happen when a contractor has finished a certain project and the owner of the construction has not paid for it. It is also possible for subcontractors to place a lien on your property even if you paid the contractor, but he did not pay the subcontractors.
It is very important to avoid liens because they come with their own set of disadvantages. For instance, when a lien has been placed on your property, the bank cannot lend you money to refinance it. In addition to this, buyers will find out about the lien when doing valuation and avoid your property and mortgage companies may even decide to declare a default on the loan and repossess the property.
It is thus important that one avoids liens. It is a requirement in law that before the contractor begins a project, he puts up a notice. This notice usually tells what kind of work will be done, the cost evaluation and other information that is related to the project. This notice is usually filed with the local clerk. It is expected that upon completion of the work, the contractor files an acceptance. With this, the contractor can hold the property if he has not been paid.
The contractor cannot file a lien immediately after the completion date but he has to allow at least 60 days to be over. Once they give the notice, it will act as the lien. The acceptance needs to be duly signed and this should indication that they have been paid.
There are several things that you can do to avoid these liens. First, insist that the contract be worded to state that the contractor will be responsible for all the work liens that they authorize. This will pass on the responsibility paying the bills and dealing with the unknown liens to the contractor.
When you authorize work, ensure that you personally pay for it. All purchases need to be receipted and filed also. In case you are concerned about property that first gets to the contractor or subcontractor before getting to the site that is not subject to lien.
Another way to avoid trouble is insisting for the signing of a lien waiver. This is signed by the suppliers and contractors on a construction project. They are supposed to indicate that all payments have been made and that a lien cannot be filed against your property.
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.
It is very important to avoid liens because they come with their own set of disadvantages. For instance, when a lien has been placed on your property, the bank cannot lend you money to refinance it. In addition to this, buyers will find out about the lien when doing valuation and avoid your property and mortgage companies may even decide to declare a default on the loan and repossess the property.
It is thus important that one avoids liens. It is a requirement in law that before the contractor begins a project, he puts up a notice. This notice usually tells what kind of work will be done, the cost evaluation and other information that is related to the project. This notice is usually filed with the local clerk. It is expected that upon completion of the work, the contractor files an acceptance. With this, the contractor can hold the property if he has not been paid.
The contractor cannot file a lien immediately after the completion date but he has to allow at least 60 days to be over. Once they give the notice, it will act as the lien. The acceptance needs to be duly signed and this should indication that they have been paid.
There are several things that you can do to avoid these liens. First, insist that the contract be worded to state that the contractor will be responsible for all the work liens that they authorize. This will pass on the responsibility paying the bills and dealing with the unknown liens to the contractor.
When you authorize work, ensure that you personally pay for it. All purchases need to be receipted and filed also. In case you are concerned about property that first gets to the contractor or subcontractor before getting to the site that is not subject to lien.
Another way to avoid trouble is insisting for the signing of a lien waiver. This is signed by the suppliers and contractors on a construction project. They are supposed to indicate that all payments have been made and that a lien cannot be filed against your property.
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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