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Updated about 13 years ago on . Most recent reply

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Eric M.
  • Flipper/Rehabber
  • Louisville, KY
1,299
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Mechanic's Lien Question

Eric M.
  • Flipper/Rehabber
  • Louisville, KY
Posted

My attorney is out of town for the holiday, so I will see what you guys think.

I have never had to deal with a Mechanic's Lien before.

Had a painter who I hired to work on a flip house. I gave him a Deposit check for him to start the next week and found out later that day that this was not a guy I wanted to hire (don't think the reason is important). The work was not begun. I stopped payment on the check, told him I was cancelling the contract and he flipped out.

He called me from his attorney's office the next day saying the check was a contract and he was filing a mechanics lien if I didn't pay up. I said go for it.

Several weeks later no lien has been filed. I bought the property at a Sheriff Sale and typically the flips are just a few months so I often don't even record the deed until the time of the sale.
I am wondering if the fact that I have not recorded the deed is what prevents him from filing the lien (or maybe he was denied by a judge or was just bluffing). And wondering if not recording the deed until the end isn't therefore a smart legal strategy to avoid being scammed by a bogus lien in the future.

Thanks

Most Popular Reply

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Dion DePaoli
  • Real Estate Broker
  • Northwest Indiana, IN
2,087
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Dion DePaoli
  • Real Estate Broker
  • Northwest Indiana, IN
Replied

It doesn't sound like you were the owner of said home to officially offer the work to begin with. You as a consumer have a right to change your mind, no work was done and thus no damage occurred for the painter to file against. I think he was bluffing, there is no real basis to go after.

  • Dion DePaoli
  • Loading replies...