Does this sound like a nightmare or what?!?! Imagine you buy a new house and your title agent, or attorney, explains that the only lien against your property will be the expected mortgage. Then a few months later you start to hear rumors in your neighborhood about the builder who didn't pay his contractors, so YOU will be forced to pay because suddenly there is a contractor's lien on your property. This is not a nightmare to some people - it's reality.
Here's a quote from an Elk Grove, CA article titled, "Lien Times Hit Elk Grove": "The unfortunate nature of it here is that the homeowners are on the hook for this because we didn't get paid," said North Hollywood attorney Ken Grossbart, who is representing the landscaper plaintiff, Pacific Parks.
And a quote from a Gainesville, FL article titled, "Builder Woes Hit Home": "...in at least two cases in Weschester, liens have been filed on houses that have already been purchased and moved into. In those cases, according to Florida's Construction Lien Law, if the liens don't get paid the home could be sold against the owner's will to pay for the labor, materials or other services the contractor didn't pay."
In my opinion, every state that upholds this should change their laws. This is a complete injustice! The debt is the responsibility of builder in these cases and if they go bankrupt, then these debts should be included. I'm sure the contractors are feeling ripped off, but they have no right to chase a complete stranger to the transaction. This makes me furious. Tell me I'm not the only one!