Tips On How To Avoid Construction Liens NY Area
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Title: Tips On How To Avoid Construction Liens NY Area
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You are now reading the article Tips On How To Avoid Construction Liens NY Area With the link address http://attorneythesis.blogspot.com/2016/09/tips-on-how-to-avoid-construction-liens.html
Title: Tips On How To Avoid Construction Liens NY Area
link : Tips On How To Avoid Construction Liens NY Area
Tips On How To Avoid Construction Liens NY Area
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.
At all times, liens should be avoided as they have so many disadvantages. For example, if the work is not complete and you need finance to complete it, getting a loan from the bank is not a walk in the park for property that has a lien. Even for buyers shopping for property, any property with a lien raises a red flag for them. You may even find the mortgaging company blacklisting that property after declaring the mortgagee a defaulter. They may even go to the extreme of getting that property from the owner.
For the reasons above, liens are not the best thing. Among the legal requirements when starting up a construction, is putting up the notice which needs to be done by the contractor. In the notice, you will get information such as the costs, type of work expected to be carried out and other important information related to constructions. This information is then given to the local clerk and filed. After completion, the contractor then files an acceptance and this is what gives them authority to do a lien in case there are unpaid dues owed to them.
The contractor is normally given 60 days from the substantial complete date to file a lien for non-payment. The notice is what acts as a lien. You as the contractor should follow up and make sure that the acceptance has been signed. This only happens after all the funds and payments related to the job have been satisfied.
On the part of the project owner, one needs to protect themselves. One of the ways to do this is to have a clause in the contract indicating that when one authorizes a lien, they will be responsible. This means that the bills will be upon them and they will also take matters that will deal with unknown liens.
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.
If you have a lien filed against you, you will need to bring in a professional on board who will do what they can to free your property. You should not delay this as it matters a lot when it comes to your credit score and will also protect you from being blacklisted.
At all times, liens should be avoided as they have so many disadvantages. For example, if the work is not complete and you need finance to complete it, getting a loan from the bank is not a walk in the park for property that has a lien. Even for buyers shopping for property, any property with a lien raises a red flag for them. You may even find the mortgaging company blacklisting that property after declaring the mortgagee a defaulter. They may even go to the extreme of getting that property from the owner.
For the reasons above, liens are not the best thing. Among the legal requirements when starting up a construction, is putting up the notice which needs to be done by the contractor. In the notice, you will get information such as the costs, type of work expected to be carried out and other important information related to constructions. This information is then given to the local clerk and filed. After completion, the contractor then files an acceptance and this is what gives them authority to do a lien in case there are unpaid dues owed to them.
The contractor is normally given 60 days from the substantial complete date to file a lien for non-payment. The notice is what acts as a lien. You as the contractor should follow up and make sure that the acceptance has been signed. This only happens after all the funds and payments related to the job have been satisfied.
On the part of the project owner, one needs to protect themselves. One of the ways to do this is to have a clause in the contract indicating that when one authorizes a lien, they will be responsible. This means that the bills will be upon them and they will also take matters that will deal with unknown liens.
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.
If you have a lien filed against you, you will need to bring in a professional on board who will do what they can to free your property. You should not delay this as it matters a lot when it comes to your credit score and will also protect you from being blacklisted.
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Discover the top advantages of using construction liens NY area by referring to the main page. Take a quick tour of this website now at http://nymechanicsliens.com.
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You are now reading the article Tips On How To Avoid Construction Liens NY Area With the link address http://attorneythesis.blogspot.com/2016/09/tips-on-how-to-avoid-construction-liens.html