Consumer Blog
Mechanic's lien and lien waiver
If you've ever dealt with contractors building or repairing your home, you may have heard these terms thrown around. Despite the way it sounds, a mechanic's lien doesn't just pertain to car repair, but home repair as well. A lien waiver comes into play during new home construction.
Mechanic's lien - a general contractor doing repairs or remodeling at your house can go to court and get a mechanic's lien on your property if you don't pay him. This means if you sell your house, part of the sale money will go to pay that contractor's bill. Any prospective buyer is obviously going to be turned off by this.
Under Missouri law, only the general contractor - not the subcontractors such as plumbers, electricians, drywallers - can put a mechanic's lien on your house. That means if you have paid the general, but he doesn't pay his subs, they can't put a lien on your house. The only way they could do that is if you sign a Consent of Owner statement. We do not recommend consumers ever sign this document, as it makes you vulnerable to having to pay the general contractor and the subs for the same work.
Lien waiver - Missouri law is different for new construction. It allows any contractor - general or sub - to put a lien on your property if they don't get paid. That means if you pay your general and he doesn't pay his subs, the subs can still put a lien on your property. So you may want to ask for a lien waiver from every subcontractor working on your house. Yes, this is a lot of work because there are so many - landscapers, concrete, masons, roofers, flooring, carpenters, etc.
Technorati Tags: finance, general contractor, home construction, home remodeling, lien waiver, mechanic's lien, shopping and spending, subcontractor, home repair, moagoconsumer, consumer protection
Posted by on November 12, 2008 12:03 pm :: Comments (7) :: Permalink
7 Responses to "Mechanic's lien and lien waiver"
says:
November 22, 2008 9:45 pm
As a painting contractor, I often get two checks for new construction. One when I do the painting, and another when the house is finished and I do touch ups. Can I file a Lien if I don't get the second check even though I signed the Lien Waiver when endorsing the first check?
says:
November 24, 2008 9:23 am
To Larry:
This is a question for your lawyer.
says:
December 17, 2008 9:22 am
we supply builders with cabinets. if we have only shipped half the cabinets can we file a lien?
says:
December 17, 2008 9:30 am
To Jenny:
I'm not following your question.
says:
February 1, 2009 10:23 am
MY question is as follows, I was contacted by a homeowner that wanted painting in her house she purchased, she gave me a list of the items she want completed I said okay and told her that it would be easier to bill her time and material cost,some areas were already painted and didn't need my attention. I kept track of the hours and she bought the materials I checked off the items from the list as completed. She refuses to pay the amount I invoiced her, Can I file a lien against her,I am a painting contractor LLC. listed company in the state.Thank you
says:
February 2, 2009 2:21 pm
To Scott:
You need legal advice and need to contact a private lawyer.
says:
March 5, 2009 11:10 am
I had auto repair done. I paid with a check. My car is unchanged and the mechanic states that he did not do the repairs that are written on my receipt. He says that he only turned my rotors. He charged me for RESURFACING rotors. But, my brakes are doing the exact same thing slight pulsation when I apply the brakes when going down a hill. I contacted the customer service person and was told that I did not know what I was talking about that my rotors were turned. But I have a receipt that says differently.
