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Notice of Contest of Lien

Property owners are obligated to understand and obey construction lien laws

Notice of Contest of Lien

Property owners are obligated to understand and obey your state's lien laws. By following the law, the owner can make sure that all members of the construction team are paid in full while also protecting the property from liens. In the event of nonpayment, one of the most important tools any contractor has is the ability to enforce a claim for payment through your state's lien laws. In the same way that a contractor should come to the job site with the proper tools and equipment, he should also properly plan to protect his right to be paid for the work he does.

A Notice of Contest of Lien is legal document by which an Owner can shorten the statutory one year time limit a lienor has to file suit to sixty (60) days. If a Lienor fails to file suit within the 60 day time limit, the Claim of Lien is automatically extinguished.

When an Owner files a Notice of Contest of Lien, the Lienor has only two options:

a) File a lawsuit to enforce the Claim of Lien or

b) Allow the 60 days to expire and recover absolutely no payment under the Claim of Lien.

If you decide to file a Notice of Contest of Lien, speak with an experienced construction attorney.

Remember, you should not assume that the Claim of Lien is legally enforceable, and you should not assume that the amount claimed is valid.

Even if you pay the Claim of Lien in full, it is still possible that the Lienor may not pay his subcontractors and suppliers.

� If your contractor is having financial problems and is not paying the bills, get legal help right away. Don't assume that paying suppliers and subcontractors directly will protect your property from Liens. Oftentimes this practice will needlessly increase construction costs and will still result in Liens against your property.

Never make any payments to anyone without first receiving a Release of Lien and a Sworn Affidavit stating that all persons performing work and delivering materials have been paid in full.