A Contractor’s Toolbox: The Basics of a Mechanic’s Lien.
It is important to remember two things if you are a contractor and your customer did not pay you. You need to act quickly. And a Mechanic’s lien is one of the most important tools a contractor can use to get a homeowner to pay for their work.
First, if a customer is refusing to pay you for the work you did it is important to act quickly. Most states give you less than a year to file a mechanics lien. And in that time period you have to send a “notice” to the owner of the property you did work on. In most states you can only file a mechanic’s lien after you meet the notice requirement.
Second, you can use a mechanic’s lien as a tool to get paid. For example, most potential homebuyers will not buy a home with a mechanic’s lien on it. A mechanic’s lien can be used to force a customer to pay you. Because if you have a valid mechanic’s lien on a property you can use it to foreclose on that property. A homeowner must pay a contractor with a valid mechanic’s lien on their property or risk loosing their home.
If you are a contractor and you need to file a mechanic’s lien it is important to contact an attorney immediately. An attorney will be able to walk you through the process of filing a mechanic’s lien. And make sure you get paid.