Working in the construction industry, you have challenges to your bottom line that other entrepreneurs and businesspeople may not ever face. For example, once you win the bid on a job, you rely on your contract with the property owner to ensure that you receive payment for the completed work, but once you have completed it, there is always the possibility that you will not be paid on time, or at all. The team at Aldrich Law Firm, Ltd., understands the risk that a contractor faces in these situations, and we have assisted many in filing mechanic’s liens to recover payment.
The Northern Nevada Business Weekly explains that, because you have already fulfilled your part of the contract, you have the right to place a lien on the property, as long as the cost of your services exceeds $500. The lien is attached to the improvements you did on the property, and the supplies you provided, as well as the property itself. A property owner may attempt to prove that the lien is excessive, and if successful, the judge would determine an amount that is considered fair.
The work on the project must be completed before the lien can be enforced. There are strict deadlines regarding the creating of the lien, and it binds the property for six months. Even if there are other liens on the property, or a mortgage or other encumbrance, after the sale of the property, your lien would have first priority. More information about legal issues in the construction industry is available on our web page.