What are subcontractor liens?

Posted by admin | Real Estate and Property Investing | Tuesday 13 September 2011

A legal remedy that is used by subcontractors to get paid for the construction that they made or the labor that they done is called as subcontractor lien. This is done because the subcontractor does not receive their full or even martial payment from the owner of the property. In some other legal system it is called as a mechanic’s lien. The property owner is the one who is going to be affected by the lien because the lien that the subcontractor will file is going to be about the real estate or the property that the owner owns. Another thing is that, the money that the subcontractors are requesting must be given first before the lien is going to be removed.

Most of the time the subcontractors file claim of lien or a lien claim because they are unable to solve the disputes that happens between them and the property owner and even with the general contractor. There are situations that the owner are paying the general contractor in full, then the process of obtaining alien of a subcontractor will not be successful.

There is often a time limit for when the subcontractors are allowed to file for the lien. There are some jurisdictions that are requiring the subcontractors to file their lien just within 90 days after they have reformed the last delivery of the final materials. Most of the time why subcontractors are having denied lien is because they fail to follow the time requirement that the court has given them. They are also required to send the timely notice to the general contractors the tenants and the owner. The laws for a subcontractor lien can also vary depending on the jurisdiction. Each of the variation that will happen has its own system of filling requirements and having its own notice.

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