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Avoiding a Lien When Fixing Up A House
If someone does work on your rehab, or a house you are going to flip or rent. However, at the end whatever reason they decide they have not been properly compensated, they can put a lien on the property. What does it mean to have a lien on your property? It means you can not sell the house or refinance the house without paying the claimed debt. Not only can they put a lien on your property but the supply company can too under certain circumstances put a lien on the property; which is why you need a proper lien waiver for your rehab jobs.
Here is an example, you paid the fence company to put a fence for privacy. You pay the fence people. However, the wood supply company sends you a notice of lien, because they were not paid. Technically, you already paid the fence company but they did not pay the supply company and they ran away with the money - because However, the courts may now decide you have to pay twice...UNLESS you had a lien waiver.
So, what should you do? Let us say you have a house you are going to flip, and you are fixing it ... more

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