10 Ways A Mechanics Lien Gets You Paid

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The intimidating part of working on a construction project is getting paid. No matter how careful the contractors are, there comes a time when they don’t get paid for their work. In many cases, the mechanics lien law is here to help. The mechanics lien is a unique and powerful legal remedy that secures payment for subcontractors, contractors, and suppliers. When properly followed, a mechanics lien will ensure payment of the price of work or materials provided by the claimant.

Read on for the 10 ways a mechanics lien gets you paid.

1. A Mechanics Lien Restrains the Property

A mechanics lien that is properly perfected by a good lien lawyer will ensure that no one buys or leases the property. The mechanics lien will appear when a search on the property is conducted and anyone who purchases the property will be subjected to the claim. This means that the property will not be purchased by another person until the claims are fully paid.

2. A Mechanics Lien will provide you with Legal Claim on the Property

During certain times, the property owner may not be in a position to pay the debts owed. In these cases, the mechanics lien will give you automatic claim over the property. You will have a legal right to sell or collect from the collateral property to finance your claim.

3. A Mechanics Lien will get the Attention of the Owners and Lenders

Many projects get their finances from lenders such as banks. These lenders usually have security on these loans. When the mechanic’s lien is filed, the mortgage security is brought into the picture and the bank, therefore, has to step in. This ensures you have the attention of both the owner and the lender and is one of the best ways that a mechanic’s lien gets you paid.

4. A Mechanics Lien Sets Out Strict Deadlines

The mechanics lien sets out deadlines that must be followed since they are strictly enforceable. The property owner must settle the claim within a given range of time as prescribed by the law. Extensions of the deadlines are rarely permitted as they are contrary to the Mechanics Lien Law. The strict deadlines that are imposed will ensure that the claims are paid on time.

5. More Parties are Brought In

When a mechanics lien is filed, more parties are brought in.In many cases, you will be allowed to file a suit against the main contractor, the owner of the property, and at certain times the land on which the property sits on. This means that more parties will be legally compelled to pay your claim. In some cases, all the parties will be obliged to come up with a joint cheque to settle the claim.

6. A Mechanics Lien is Difficult to Challenge

Lien lawyers are known to file certain mechanics liens that are quite difficult to challenge. After filing the mechanic’s lien, it will be hard for the property owner to either dispute or ignore the claim. If the contractor kept their side of the deal, the property owner will be left with no other option but pay up the claim.

7. A Mechanics Lien gets past Bankruptcy Protection

Mechanics liens are the strongest tools available to protect against non-payment due to bankruptcy. If the project was started before the bankruptcy was filed, the Bankruptcy Code allows the mechanics lien to be perfected after filing and during the automatic stay. Therefore, a mechanics lien offers an excellent way to be paid even in a bankruptcy situation.

8. Flow of Money to the Project is Stopped

A mechanics lien gets the attention of everyone working on the project and freezes the flow of money to the project. All parties may be put in a breach of contract situation, and flow of money can either be stopped or slowed until the violation is resolved.

9. Property Owners Try to Avoid a Mechanics Lien

You may be entitled to filing costs, attorney fees, collection costs, and other charges once you file a mechanics lien. This makes it very hard for the property owner to dispute your claims since they may be subject to paying more expenses. Since this may turn out to be very expensive, property owners always try to avoid it by paying for your work.

10. A Mechanics Lien Affects the Relationship of the Property Owner with Other Parties

There is usually a good relationship between property owners, contractors, suppliers, and lenders.Once a mechanics lien is filed, these relationships are disrupted and may expose them badly to the other parties. Due to the delicate nature of these relationships, there is increased pressure for your claim to be settled immediately.

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