What Are Mechanic’s Liens In Commercial Law?
Our New York City attorneys who do Mechanic’s liens know that Mechanic’s liens are a powerful tool to force property owners to pay them what is due for either construction performed or materials supplied.
Mechanic’s liens are liens that a contractor can put on a property where they have done work to improve the property and have not been paid. A contractor has eight months to file a mechanic’s lien from the last day they furnished services. If the property is a single family home, however, then they have to file it within four months of the last date in which they rendered service. The mechanic’s lien is a very powerful tool for the contractor, because it allows them to prevent the property from being sold. A lot of times a company will build a new development and try to sell it very fast and not pay all the contractors and subcontractors. This mechanic’s lien puts a stop to that, because no property owner can sell a building or property with a mechanic’s lien on it. Before a closing can go through, the mechanic’s lien has to be satisfied.
How Does Someone Actually Enforce The Lien And Get Paid?
Once a lien is filed, that blocks any sale or refinance of the property. If a property owner wants to sell the property or refinance the property, they have to reach out and actually obtain a satisfaction from the contractor. Also for a general contractor to get paid, they usually have to be able to show that any mechanic’s liens have been satisfied. Our New York mechanic’s lien attorneys have handled numerous construction related disputes over the years and know that a Mechanic’s lien can level the playing field for a small subcontractor on a big job.
After a year, the contractor has to enforce the lien by going to court and asking for an order to foreclose the lien, to sell the property, and pay the lien. Usually when that happens, it will generate interest into settling the case.
What Does It Mean That A Property Owner Is Bonded By A Mechanic’s Lien?
A bonded mechanic’s lien is where an owner will actually place a bond that you have to pay to cover a mechanic’s lien, in case it is found to be valid. Because the cost of a bonded lien is so high, it’s easier for them just to pay a lien or negotiate a settlement in a lien. The bond is a way for the homeowner to provide financial security and basically have the lien released from their property, but if the lien is determined to be valid, then the contractor can collect against the bond.
How Can Someone Find Out The Amount Owed In A Mechanic’s Lien?
The amount owed will always be stated on the lien itself. If homeowners are disputing the amount owed, it can actually bring an action for a lawsuit to collect double damages from the contractor.
How Does A Subcontractor Know If A General Contractor Has Been Paid?
If a contractor has contracted with a subcontractor, it is still the contractor’s obligation to pay the subcontractor, whether he gets paid or not. Generally, once a mechanic’s lien is filed, the property owner will contact an attorney and advise them if they’ve made all the payments required under the lien or not, and they can simultaneously file a breach of contract action against the general contractor.
What Factors Set Your Firm Apart In Handling Commercial Litigation Cases?
We will take a business litigation case on contingency and do all the work, and we only get paid if we win. This is a huge benefit to small businesses, who can’t afford the high hourly rate that most Manhattan law firms charge. The work we do is comparable to any big firm in New York City and we can provide a great value to small businesses.
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