If a builder doesn't paid services on a home that he hired out can the owner of that business place a lien?

Question

Two months after closing the owner of a window and blind company called and said he was going to place a lien on the property if the builder doesn't pay the invoice. The blinds were installed 6 days after closing and was included in the purchase agreement. the contract for the blinds was between the builder and the owner of the business and I never signed a thing between the business owner. Since its the Builders debt, I don't see how my house can have a lien placed on it, what's next the lumber used, bricks and lights?

Answer 1

I agree check with an attorney

Answer 2

This is very simple. Call the builder and tell them that this company has contacted you in regards to the blinds not being paid.
Tell the builder if this matter is not cleared up and the lien releases in your hands within 14 days you will be in contact with your lawyer.
That should do it if it was an over sight by the builder.
If the builder is reputable that is. If he isn`t then go after there lic. and bond right away there may be more issues.
Send a letter to the blinds company that you will not tolerate a threat from there company and you do not have a contract with them. If they will file a lien against you then you will have your attny sue them for cloud of title. Along with the builder.

Answer 3

It's a builder's debt, but it's a mechanic's lien.

What she is telling you is legally correct and YES SHE CAN put a lien against your home.

This is what I would do...I would drive down to the builder's office, and tell them that you want them to CUT YOU A CHECK DIRECTLY so you can pay the woman, directly...she is going to care less of where the money comes from.

Do not give her any money unless you walk out the door with a receipt, and a statement stating it's paid in full.

I CAUTION you, even though the contract is not with you, but the builder, to bite the bullet and keep from getting the lien put against your home.

You will end up having to call your title insurance company, filing a claim, getting an attorney, going to court...do you see how big of a mess it can get?

Call the lady back, ask her if she will KINDLY give you 72 hours to rectify the problem.

PS: If the builder didn't pay for the lumber, bricks and lights...yes they can.

Answer 4

You are learning about materialmen's and mechanics's liens, the hard way. Suppliers and workers who are not paid by the contractor have every right to file a lien against your property to effect payment. If the contractor won't cough up, you may have to pay.

Depending on your state, the suppliers may be only able to file the lien, such that you will pay them when you sell the house. In other states, a lien can be foreclosed much like a mortgage. You either pay what is required, or they foreclose the lien and the house goes to auction to raise cash to pay off those liens.

I'd love to know what sort of title firm handled this mess, since they should insure that waivers of lien from all suppliers and workers are in the file before closing proceeds are forwarded to the builder.

Start with the title firm involved. They are supposed to provide you a clear title to the land, and title insurance may step in for your situation. Contact an attorney as well.

Answer 5

I'm wondering why if the funds were to be included as part of the purchase agreement, I'd have thought the money would have been left with the title company to pay the contractor. Two things I would check for, your purchase agreement, to verify that the work to be done was indeed spelled out in the agreement, and the second thing I would check is to see if it was itemized on your HUD 1 statement or your settlement sheet.