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Mechanic's Liens: Too easy to generate? Make sure you get lien clearance from your contractors

By
Real Estate Broker/Owner with Metro Life Homes RS-78439 / BRE #01708344

I just came back a while ago from my Homeowner's Association board meeting, of which I am Vice President.

We are a planned community of single family homes.

One of the residents that was in attendance asked if anyone knew anything about one of the local roofing companies.

She said she now has a mechanic's lien on her home, and that is has nothing to do with the payment to her contractor, which she has paid in full.

The issue that brought about the mechanic's lien on her home is the fact that the contractor who did the work on her home apparently did not pay the roof tile supplier what he owed them.

I was wondering how that is possible for the supplier to know which homes the supplies were used on exactly. It also made me think just how easy is it for a supplier or contractor to put a mechanic's lien on your home.

Our rep from our management company also attended the meeting and she stated that is probably because the contractor must give an address to the supplier for the materials.

This brought up a good point that it might be a good idea for you to obtain a lien clearance from the contractors that do work on your home, since you never know what your contractor's business or financial situation is.

And in an economy where people may be floating money to make ends meet, you should probably keep your bases covered.

Comments(9)

Aida Pinto
Independent Real Estate Broker - Los Angeles, CA
Real Estate Broker (562) 884-6196

Ralph good post as well, "lien clearance" never thought about that--thanks for the info.  How do get Bee Gees to play on you post?  Love it!

Jul 27, 2009 07:15 PM
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

Congratulations on the featured post!

Jul 27, 2009 09:11 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland


Mechanical liens are far too easy to get in many states.  In MD, not so easy and takes a judgment lien first. 

In VA, our buyers buy mechanics lien insurance at closing because a supplier or subcontractor can file a mechanic's lien up to several months following closing. 

Jul 27, 2009 09:35 PM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Having run a small service business before. .I see how valuable a mechanics lien can be. 

Jul 27, 2009 10:22 PM
Russel Ray, San Diego Business & Marketing Consultant & Photographer
Russel Ray - San Diego State University, CA

It seems that each county here in California does mechanic's liens differently. Have had to deal with mechanic's liens on both sides of the equation, I've never really understood why some states make it so easy for someone to put a stranglehold on someone's homestead while others make it so difficult.

Jul 27, 2009 10:42 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I like the idea of mechanics lien insurance. Good post. Thanks for the reminder.

Jul 27, 2009 11:01 PM
Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

A friend of mine does this at the county. She is working her butt off and told me that filings are up 600% with contractors.

Jul 27, 2009 11:21 PM
Jim Valentine
RE/MAX Realty Affiliates - Gardnerville, NV

Tough situation when you've paid your bill and you are still liened.  In these times one can't be too careful.  Thanks for the information.

Jul 28, 2009 04:48 PM
Anonymous
georgena mimms

our pool gunite contractor filed a mechanics lien on our home, because we would only pay him the agreed to price and (1) he didn't pay his suppliers and (2) he decided "post job" that we owed more. So, we researched the law and discovered that his lien was invalid because it was for more than the contract amount -- so we threatened to sue if he didn't remove it immediately and settle for the original amount owed. he removed it and settled.

Jul 30, 2009 03:58 PM
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