Mechanics Liens: Protecting Your Home

For a major home improvement or renovation, anumber of unfinished projects and number of cases
homeowner usually hires the services of a contractorfield against a contractor. These figures will give a
to do the job efficiently and quickly. For a first-timeclear picture whether or not a contractor finishes a
homeowner, however, he would be surprised tocontract, pays his employees or subcontractors on
know that there is a law that would attach histime and avoids litigation by getting the job done.
property to his contractor, a legal remedy known as2. Ask for a detailed agreement - Put into writing
mechanics liens. Although a mechanics lien iseverything that needs to be repaired or done,
unavoidable, there are a few things a homeownerincluding the timeframe for each work. Ask for the
could do to protect his home.names, contact details and job description of each
The basics of mechanics lienssubcontractor and the expected period of work
For every major contracting job that a contractor,completion. This gives the specific numbers of key
supplier or worker engages into, the law permits himplayers in the project, and prevents the coming in of
to file for a mechanics lien into the property of thea new subcontractor without the knowledge of the
homeowner. This lien serves as protection for ahomeowner.
contractor in the event that a homeowner fails to3. Issue separate checks - A homeowner may issue
pay after the completion of a project. Enforcementseparate checks for the contractor and the
of a mechanics lien is usually done like a regularsubcontractors, which is better than coursing every
foreclosure proceedings. When the property is sold,payment through the contractor. This ensures that
the amount unpaid to a contractor would be takenevery payment goes into the right hands.
from the sale.4. Ask for receipt of payment - Ask the contractor
Although a mechanics lien this is something good,as well the subcontractor for a simple letter that
especially to contractors, a homeowner may bestates they received payment for a specific
placed in an unfavorable position in somecontracting job. Say, for a kitchen improvement, the
circumstances. One instance is when a contractorkitchen slab has been attached and the plumbing has
hires a subcontractor or a supplier. Even though thebeen done. Pay for these first and ask for receipt of
subcontract or a supplier is under agreement with thepayment and do so again after the contractor is
contractor, under the law the subcontractor and thedone with the kitchen cabinets, the floor tiles and the
supplier can attach a lien to the homeowner'swallpaper.
property. This means that if a contractor failed to5. Get liens wavers - If the contractor wouldn't want
pay the subcontractor or a supplier even if thethe homeowner communicating with his
homeowner has paid the contractor in full, thesubcontractor or supplier, the homeowner may ask
subcontractor and the supplier may file to the courtfor a lien waver from the subcontractor or supplier.
for the enforcement of a mechanics lienThis is to prevent them from claiming for a
How to protect your homemechanics lien against the homeowner even after the
1. Hire a reputable contractor - Find someone with ahomeowner has successfully paid the contractor in
good track record. Get the numbers, such as numberfull.
of completed projects, number of pending projects,