If a homeowner does not pay for services rendered by an Ocean County roofing professional or any subcontractors, a mechanics lien may be placed on the property. While the thought of a lien on a property may be shocking to those who believe that they have done nothing wrong, it may be possible to challenge this lien. Additionally, there are conditions that must be met before the lien is valid.
Before any project begins, a homeowner should file a Notice of Commencement. In doing so, a property owner will have in writing a full list of contractors, subcontractors and the amount owed to all relevant parties. It also puts into writing the fact that there is adequate insurance as well as an adequate bond amount in case anything goes wrong. In some cases, a homeowner may have to pay for a job twice if such a notice is not completed and filed.
As an extra precaution, it is a good idea to get a release of lien from anyone who may be owed money for labor or materials. This may include contractors, subcontractors and any employees who need to be paid by the contractor or the homeowner. It is important to know that a lien generally cannot be enforced until the job has been completed. Therefore, if a dispute over payment arises, a lien would not be enforceable if any portion of the work order has not be finished.
Furthermore, the lien only applies to a cost related to work that actually improves the property. For instance, if a temporary platform is built to give workers better access to the roof, a lien could not be used to compel payment for materials and labor related to that temporary structure. This is true even if the project could not continue without it.
In most cases, a roofing professional is not going to want to put a lien on a property to collect payment. This is because it could cause tension between the contractor and the customer. Furthermore, it could be years before the house is sold if it is ever sold to pay off the lien. It could also take more time, effort and money than it is worth to settle the case in court with or without a lien.
To avoid a lien potentially being placed on a property, make sure to establish a paper trail of payments and other documents relevant to the project. Being organized can be the best way to avoid communication breakdowns that could lead to lawsuits or other actions being taken by either the property owner or the contractor. A roofing contractor from Fortified Roofing of Ocean County NJ can answer your questions about new roofs or skylights.
Roofing term from Fortified Roofing, Ocean County NJ:
A lien is a legal claim over or a security interest in a property to ensure payment for services rendered. If a lien is placed on a house, the holder of the lien is often the first to receive any proceeds from the sale of the home.
Ocean County roofing company Fortified Roofing answers a question:
Are lien claims part of the public record?
Yes, liens are generally part of the public record and can generally be found during a title search. It may be possible to challenge the lien or have it removed if proof of payment can be produced. In some cases, the lien may not be discovered unless the title search is conducted.
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