Contractor liens

[Andrew S.]

I hired a general contractor to do a fairly major rehab on one of my properties.  Construction is done but it now turns out that the GC apparently has not paid some of the subs yet and they threaten to file contractor lien against my property.

Questions:

1. How will I know if a lien has been filed (will I be notified or do I have to do periodic title searches?

2. What are my options for resolution and potential action to take against the GC and/or the sub who filed the lien?

Any input appreciated.

[Karen Margrave]

@Andrew S.  Do a search and find out what the requirements are for filing a mechanics lien in your state. In California, a sub contractor cannot perfect a lien unless they went through the process by filing a pre-lien notice, etc., which is done before they begin work on the property. It's necessary to notify the property owner that work will be done, and that they are subject to a lien. Every state has their own process, get to know yours. Mechanics Lien Law - North Carolina

Also, when having work done on property, control the pay out of money. Tell the contractor up front that you will be writing checks directly to the subs, and submit the bills to you. When the sub is paid, make them sign a lien release at the time they accept the check. That is the best protection agains liens.