Man, I am hot. I hired a contractor to build a concrete storage building. Well the building is built but now the concrete company says there is a balance owed and they are going to put a lien on my building. How can they do this when I did not hire them to do such instead of putting a lien on something the general contractor has?
Man, I’m PISSED!
Probably, yes.
I don’t think you’re in my state (Illinois), but Illinois and most states have something called a mechanics’ lien which would allow a materials supplier (aka a materialman) to place a lien on the owner’s property, even if the materials were supplied to the contractor, not the owner.
Mechanics’ lien rules are very technical, and there are ways that an owner can protect himself (by getting a contractors’ sworn statement before paying the contractor). I suggest you see a lawyer in your state.
From previous posts, I’m aware that you aren’t very fond of the legal system. I’ll save you some time. Mechanics’ liens are statutory. Therefore, any complaints about the unfairness of these liens should be directed to your state legislature, not lawyers, judges, or the legal system in general.
Usual disclaimers here: I’m not your lawyer, you’re not my client, and nothing here should be construed as legal advice.
That’s cool. Man, you are talking to me I would never sue you. I thought a mechanics lien was on like automobiles that were brought in by an owner of said car not real property.
Maybe. Consult your attorney for further details, unless you just don’t care whether the lien is valid.
Wildest Bill – I have just ‘almost’ went through this myself. I was saved because I hadn’t paid my final installment to the contractor. I demanded something called ‘lien wavers’ from my contractor. He drug his feet and still wanted payment. Luckily, he had told me which suppliers he used so I looked them up and called them directly. After the dust settled, I was able to settle the debts with the suppliers and it only cost me $100 more then I owed the contracter.
I was very lucky. Live and learn.
I would contact your state attorney general. My wife contacted ours (MN) and she was told something that went against everything I ever heard about this. She was told that if you pay the contractor in full and the job is finished that the suppliers cannot place a lien or hold you responsible. Again, this goes against everything I’ve ever heard but she swears it was what she was told by the attorney generals office. I hope someone on here can clear that up.
On a side note, I had some bozo supplier threatening me to pay a bill from the contractor when the materials weren’t even delivered to my place and they didn’t even have my address! I have no doubt the materials were used but the contractor bought them in his name and not delivered. He found me because I settled a bill with another business and they are friends. He didn’t even know what was used! I told him to sue me.
Lesson learned:
lien wavers before you pay last half (or so) of amount owed contractor
Buy materials from supplier directly. That way you know the bill is paid and the contractor won’t up the cost. (I paid $2000 for black dirt but the bill I paid the supplier was only $1375).
Don’t pay a substantial amount up front but in smaller amounts as work progresses.
Good luck,
Blink
Yeah, the name of the lien is kind of confusing, isn’t it? Actually, mechanics’ liens only deal with real property. The kind of lien that your car mechanic can assert is something different.
About the disclaimer: It’s just something I reflexively do. There have been cases where people have claimed that an attorney/client relationship was created by giving casual legal advice. My addition of it here had nothing to do with the fact that you wrote the OP.
Seriously, though, these kinds of liens have a lot of nitpicky deadlines and other requirements. A lawyer familiar with your state’s law may be able to beat this lien with little effort. Of course, if this is a small dollar matter, it’s probably not worth it. In that case, raise some hell with your contractor.
Thanks Random and Blinking Duck. I will do what ya’ll suggested.
You really should research the builder’s lien act in your area before embarking on any renovation or construction project. While the acts are generally technical, protecting yourself from consequences like this is generally a simple matter. I am sure you can find web sites that lay out the requirements in simple steps for your jurisdiction. The act usually authorizes the owner to hold back 10% of all payments until a period after completion (This has the added advantage of providing incentive for the contractor to finish the job). Liability is usually limited to the amount you were authorized to hold back.
If the amount is too small to consider hiring a lawyer you should still do the research to determine your maximum liability and whether the concrete company has taken the appropriate steps in time. You also need to determine if there are other possible claimants before making any payments.
Here in California , the materials company has to send a preliminary notice to all parties involved (lender, OWNER, and contractor) informing them beforehand that they could be liened if materials bills are paid in full.
This has to be sent by certified mail so there is proof that everyone has been informed.
Did you get anything like this? If not, then they may be bluffing to get paid.
sorry the last sentence of the first paragraph should have said NOT paid in full.
So what happens if you ignore the lien? Does the supplier come and get the concrete back?
Ok, that was silly. But what actually can happen? Surely thay can’t touch the rest of your property.
I know a mechanic can hold your vehicle, but that’s different.
Peace,
mangeorge
You can’t get a mortgage, home equity loan, or sell the property for anything greater than an established present value minus the cost of the lien.
Ensuring that there are no liens is part of what a title insurance company does when they issue title insurance to you when you purchase property.
I imagine that if the lien is big enough, and you are sued, the court can mandage siezure of property to pay the lien.
I will second the previous advice. You should be getting partial waivers of Lien to date every time you make a payment to the contractor. I have to supply these and final waivers on a weekly basis depending on the status of the jobs I am overseeing and it it not hard to do. ( I am an ethical contractor though and pay my suppliers:))
Among all of these other things, report your contractor to the local Better Business organization, and to any other relevent consumer organizations in your area.
That will help prevent future potential clients from going through the same difficulties you have. It will also help to hit your contractor where it hurts for getting you into this mess in the first place.
Better Business may also be able to help clue you in to relevent local laws, or recommend an experienced lawyer.
Good luck
-Pandora
Actually, they can touch the rest of your property. If they don’t get paid, the holder of a valid lien can forclose on the lien, and take your house. Almost the same way a bank can forclose on your house if you don’t pay your mortgage or the government can forclose on your house for a tax lien (many differnt rules, etc., but the basic concept is the same). They have to institute a court action to do it. If you dispute the lien claim, most (may all?) states allow you to post a bond so that no matter what happens they don’t get the property.
I know you folks are right, but it seems to me that something is wrong when you can be held to a contract you’re not really even a party to. And people gripe about tort law.
Maybe it is the law because not enough people get burned to really raise a stink.
I’ll bet this wouldn’t stand in Judge Wapner’s court. 
Peace,
mangeorge
Actually not that confusing if you know the origin. It is an old British way of describing someone who worked with tools, as opposed to an agricultural worker.
What a coincidence, just had to help someone with a mechanic’s lien problem where I’m interning.
Here’s a site I found today with some good info: Mechanic’s Lien Information
Bill, you didn’t say what state you were in (or maybe I missed it); however, check with the Contractor’s License Board for your state. Here in CA, at least, any licensed contractor has a bond guaranteeing his license - let them know that he is NOT paying his suppliers, and they will investigate, possibly revoke the license, and may draw on his bond to pay the supplier. You may even get the supplier who filed the lien to help you with this - you’re both fighting to get him paid, right?
And the earlier comments were unfortunately true - he CAN foreclose and kick you out (assuming he properly delivered the 20-day preliminary notices). A more likely scenario is that he’d start to foreclose, your lender would pay him off, and then your lender would foreclose, but you’d lose either way.
By the way, mangeorge it may seem like Bill isn’t a party to the contract, but he is in possession of the supplier’s material. Unless Bill has been getting conditional progress waivers, followed by a final unconditional waiver, the material supplier still has rights to things that are now a permanent part of Bill’s real estate. You can’t repossess concrete the same way you would a TV.
This is really interesting. 
So let’s put it another way;
Say this same supplier sells concrete to a retailer, and I buy ten bags from this retailer to build a storage building myself. Or I hire a contracter to do it, but with my concrete. But the rascally retailer doesn’t pay the supplier. Can the supplier still come after me?
Peace,
mangeorge