Gotta have a lawyer for everything!!!

[Greg Urwiller]

Had a garage addition built on this last fall for a workshop. Wasn't especially happy with the contractor, but it got built and I'm happy with the results in the end. Until today. Had a visit from the foundation contractor. Nice guy, had a good talk with him. But...found out he'd filed a lien on my house for payment for the foundation! He said he and the footing contractor hadn't been paid by the general contractor for the work. Here, they have 90 days after the last day they work to file a lien. The footing contractor hadn't filed a lien in that time but is figuring (hoping?) on getting paid eventually. The foundation contractor has had problems in the past with the general, but has always gotten his money. I don't blame him for filing the lien, he's just working the system, and I would imagine he figures I'll go off on the general which might make things happen. Which I will!! Have to call my lawyer tomorrow to see what my options might be. The foundation guy says I should have had a "lien waiver" in the building contract, which we didn't of course. But, had no idea we needed anything like that. Live and learn. Feel kind of foolish for having something like this happen, but since we had no idea we would need it, what can I say! I know every local, state, rules are different, but just thought I'd pass this experience along for anyone else that is planning on building with a contractor. Make sure you have all your bases covered before you sign that contract!! My wife's pretty shook up about it, but I'm going to wait till I talk to my lawyer before I get excited. We'll see what happens. Greg

[Mike Henderson]

The thing to do is to require the general to provide you with a release from each subcontractor before you give him/her the final payment. They will get the releases in order to get the final payment.

Mike

[Ken Fitzgerald]

Greg,

Yes, I would certainly consult a lawyer.

It's a shame stuff like that happens.

Good luck!

[Chris Damm]

I always get lein waivers before paying the contractors. That's the first thing I learned when I built my hose 35 years ago!

[John McClanahan]

So, if I hired a general and required lien waivers, how could I be sure some of the guys working for him were not actually subcontractors and not employees?

John

[Rod Sheridan]

Mike, that's what we do with projects at work, retain a 10% holdback pending releases from the subcontractors, seems to work well............Rod.

[glenn bradley]

Sorry that happened hope it goes well.

[phil harold]

That sucks, But I hear about that more than I would like too. It is easy to file a lien, it is harder to get them removed.
As you noticed the contractor filed a lien and he was nice enough to inform you.
Some people will never know there has been a lien placed on the house until they go to sell it,
Even after the lien is paid off...



Now, if you plan on living in the house for the rest of your life, no worries ;o)

[Dan Hintz]

Not to mention (at least in areas I've lived in), liens must be updated every few years... often enough, the lien will stay around for a few years while the person remembers it, but eventually they forget about it, don't refile, and the lien disappears.

[glen pickren]

I was a construction lender for many years and am very familiar with this issue. I am in California and here in order for a sub to have lien rights he must file a preliminary lien notice notifying the homeowner that he is about to commence work. This puts the homeowner on notice to verify the sub has been paid before he releases all of the money due the general contractor. If the sub fails to do this, the sub loses his lien rights. Most subs don't know this, therefore usually do not have lien rights. I generally saw preliminary lien notices from anyone but lumber and concrete suppliers. The California system works reasonably well to protect the innocent homeowner.

Unfortunately this does not appear to be the case in Nebraska. http://www.realestatelawyers.com/res...anics-lien.htm

However, you indicated that the footing sub did not file a lien within the required time period. If not he has no right to lien.

[bruce buren]

good luck Greg! hope it turns out for you, Id be all over that general!

Bruce