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Updated over 3 years ago on . Most recent reply

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244
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Ryan Copeland
  • Rental Property Investor
  • Columbia, SC
275
Votes |
244
Posts

Contractor Threatened Lein on Property

Ryan Copeland
  • Rental Property Investor
  • Columbia, SC
Posted

I'm getting rid of my contractor for being extremely behind schedule and sub-par work. We have a contract in place that states that a 10% penalty is applied for each week that he late past the agreed upon completion date.

Yesterday he stated that he would put a lien on my property, which I still have to get other tradespeople to come in and finish the job.

If he does file a lean, what type of fight/battle am I looking at?

  • Ryan Copeland
  • Most Popular Reply

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    Wayne Brooks#1 Foreclosures Contributor
    • Real Estate Professional
    • West Palm Beach, FL
    13,508
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    Wayne Brooks#1 Foreclosures Contributor
    • Real Estate Professional
    • West Palm Beach, FL
    Replied

    @Ryan Copeland Don’t let this scare you, it’s a tactic often threatens by crappy contractors (I have filed Legitimate liens as a contractor).  
    1) there are penalties for filing fraudulent liens

    2) you could get his lien squashed with one court hearing, assuming it is not legit

    3) in almost every state there is a mechanism for get the lien “bonded off”, or removed from the property, while you get it quashed or just let it lie since they usually never file the suit to enforce it and liens expire, typically in a year, if the contractor doesn’t file suit to enforce it. The “bo ding off”, or whatever they call it in your state, usually involves posting a cash deposit in a court registry equal to 110-120% of the lien amount.

    Don’t let this guy strong arm you....the threat is the go to move of crappy contractors.

    BTW, what kind of license does he have and what kind of license is required for the work he is doing?  It is illegal to Act as a licensed contractor (work performed that requires a license)  without the proper license, but it is not illegal for you to Hire that guy (you just permit/illegal work issues)the burden is on him. That may be another angle to make him straighten up.

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