VACAVILLE, CA, Aug 04, 2015—If you're getting ready to build a home or remodel an existing one, you may have heard the phrase “mechanics' liens.” But what is it, and how does it work? Below, Stephen Spencer, Bev Dorsett & Sue and Steve Kappel, Broker/Owners of Coldwell Banker - Kappel Gateway offers an easy run-down.
“Simply put, mechanic’s lien is a 'hold' against your property that provides contractors and suppliers legal recourse to assure payment for services,” explains Sue and Steve Kappel. “The liens vary from state to state and allow for a cloud on the title of your property and foreclosure action.”
Also, Sue and Steve Kappel notes, if you paid the contractor, but he failed to pay the subcontractors and laborers – who do not have a contract with you – then the workers may file a mechanic's lien on your home. This could result in a double payment by you for the same job.
How can you avoid this? You can protect yourself from unwarranted liens by selecting your contractor carefully and managing your construction project responsibly. “Most construction lenders will specify a payment distribution process that involves the securing of lien waivers,” says Sue and Steve Kappel. The remodeling contract should address this as well, assuring that the general contractor is responsible for all payments as well as any costs required to remedy lien disputes that may arise.
For more remodeling information, please contact Coldwell Banker - Kappel Gateway at firstname.lastname@example.org, 707-446-9800, or Coldwell Banker - Kappel Gateway.