I recently finished building a house and sold it to another person. I am not the builder, but I was the investor and owner of the home. My question is this: Once I have sold it, can the builder or other subcontractors place a lien on the house? And if so, what good does it do if I have already sold it? Aren't they just hurting the new owners? I have paid my builder in full -- but I am afraid he is not paying his subcontractors and therefore they could place liens. Just want to know what possible liability I have, even after the sale. I wouldreally appreciate advice from builders, other investors, and attornerys. Thanks!
2007-01-12 13:10:35 · 5 answers · asked by ticketstrategies 2 in Politics & Government ➔ Law & Ethics
First, it is not your property after you sold it. that said, you can't legally sell it unless you have a clean title. If the property is subject to liens because subcontractors have not been paid, you did not have a clean title. the buyer would have a claim against you to clear any liens they filed. I would have thought the title company would have looked into this possibility before closing. Most lender require title insurance, which would not be issued if the title company had reason to believe liens may be filed. I am not an attorney of a real estate professional. My answer is based on what I believe should be common sense. Few people seem to have that these days.
2007-01-12 14:05:01 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
The buyer and the buyer's attorney were stupid by allowing the sale to go through with out making sure that this problem wouldn't pop up. It shouldn't be a surprise. This kind of thing happens all the time.
If you want your reputation to stay intact, you should grab the contractor by the collar and back hand him a few times.
It is possible you and the contractor could wind up in court, paying expensive lawyers. The one who has the most available money to take away will be the loser.
2007-01-12 13:23:12 · answer #2 · answered by John H 6 · 1⤊ 0⤋
When building or remodelling, you MUST insist on a waiver from each sub-contactor before paying the final amount to the main contractor. This is the only way to protect yourself properly.
I always require these to be completed by the sub-contractors before making a final payment.
2007-01-12 14:01:28 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It's not your property anymore once you've sold it. Putting a lien against it won't affect you.
2007-01-12 13:13:56 · answer #4 · answered by Webber 5 · 0⤊ 0⤋
You should rephrase your question. Its not your property anymore once you sell it. But anyone can place a lien on anyone's property.
2007-01-12 13:16:09 · answer #5 · answered by Sean B 1 · 0⤊ 0⤋