What Is A Mechanic’s Lien?

If you are a Carnegie area homeowner, you might want to think twice before you hire someone to work on your home. If you fall behind in payments and ultimately neglect to pay them, you could have problems when you go to sell your property. 

To help protect contractors from being cheated, the law gives them the right to use mechanic’s liens to ensure they receive payment, states FindLaw. Contractors are not the only individuals who can place liens on properties. However, their ability to do so helps to ensure they receive payment for services rendered. 

Mechanic’s liens give debtors deadlines to pay their delinquent property repair and renovation bills by. Contractors do not have to offer homeowners who owe them payment any further extensions. By the time most contractors take this course of action, it is because the individuals who hired them did not honor the original payment terms and conditions in their contracts. Once the deadline passes, contractors can take additional measures such as litigation to ensure they receive payment for their work. 

Many property renovation and repair professionals use subcontractors and suppliers, so that they can take on more work projects. If the professionals you hire to work on your home do not pay their subcontractors, you may need to pay twice. A major downside to this kind of property lien is you could end up with a lien on your property even if you do pay your contractors on time, especially if they originally paid them in cash.

Property liens can cause many issues for homeowners if they are not careful. Though there is no way to know for sure if the suppliers and subcontractors your contractor uses to complete your repair or remodeling project, there are actions you can take to keep your property’s title free of mechanic’s liens.

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