Hi, my name is Mike Stewart, and I'm a construction lawyer. This short video is about builders liens for contractors. I'm making this video because builders liens are difficult to understand, but they are a very powerful tool for contractors to use to secure their payment. The Builders Liens Act governs the creation of builders liens. The Act outlines who can file a lien on a property, depending on the work that was done. In almost all cases, a contractor is eligible to file a lien on a property. The purpose of a lien is to allow the contractor to place a charge on the title of the property, preventing future dealings with the property by the owner. For example, if the owner is financing the construction with a bank loan, the bank will see the lien on the title and instruct the owner to have it removed. This often prompts the owner to pay the amount owed to the contractor or the holdback. The Builders Liens Act also sets forth strict timelines for filing a lien. A contractor must file within 45 days of substantial completion or completion of the head contract. The definition of substantial completion and the involvement of a head contractor may affect these timelines. It is crucial to be aware of these deadlines because missing them may result in the inability to file a lien or the removal of an already filed lien, which may cost the contractor money. Suppose you have successfully filed a lien, and it is now protecting your interest by being attached to the property's title. What should you do next? If there is a bank financing the development, the lien will likely be paid into court or a lawyer's trust. However, it does not guarantee immediate payment for the lien. Instead, it means...
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Lien Waivers for subcontractors Form: What You Should Know
There can also be a lien under the Uniform Commercial Code (UCC) or a local law (for example, state law or zoning). A lien waiver is a contract under which a customer waives their rights against a business owner. The term originated with the lien holders at the time of construction, who were unable to recoup their investment cost if it were to be sued later by the business owner. The business owners wanted to make sure this did not happen, so they entered into a waiver against any lawsuit. When a business has been involved in construction on a building they can sign an agreement stating that they will waive any legal responsibility if it is sued later by one of the project's debtors. Under this type of contract, the business will sign an agreement waiving its legal liability should the owner become delinquent on their obligations. In other words, the business gives up their claim on the property and agrees to hold the property in the name of the company only and accept payment in that name. The owner or a mortgage company who holds a lien on the property does not have to agree to the waiver, instead it needs to be signed by the owner or mortgage company, which is the only party that can hold a lien against the property. Lien Waiver Definition — Investopedia If Lien Waiver is an option for the sale or purchase of your home, it is usually best to not get into a bidding war for it. When two individuals are interested and are willing to pay a significant amount for a real estate asset, a sale may be in that person's best interest, and a bidding war can lead to either a loss of the asset or a bidding war to obtain a higher price. Lien Waiver Example — Buying a Home is one of the most valuable assets, a property is more valuable than investment properties. When you buy a home, you will need to decide how you want to make the most profit from the property. This could include selling it right away, refinancing the property or living in the property, selling it in a short term to investors or buying it up in smaller lots to rent out. Depending on your strategy, it is best to ask for a lien waiver on the home, which will help you to manage the property while minimizing the risk of losing the property.
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