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Can a subcontractor sue a contractor for nonpayment if the grace period for a mechanics lien has expired and the contractor is closing on the house in 2 weeks?
Wiki User
∙ 15y ago
Yes--but the lawsuit would be for payment only, and not for foreclosure, since the grace period for the lien has expired. You may be able to get a prejudgment attachment against the house, so see a construction law or real estate attorney quickly to protect your rights.
Wiki User
∙ 15y ago
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What will happen if the builder won't paid the subcontractor after the closing but we already paid the builder in full Are we responsible and can they put a lien on our home What should we do?
Generally, if the title to your property was free and clear of any lien by the subcontractor when your deed was recorded then it's too late for the subcontractor to record a lien now. The subcontractor would need to sue the builder in a separate court proceeding in order to get paid. If there WAS a lien recorded by the subcontractor prior to the sale it should have been paid from the proceeds at the closing. Payment of any outstanding liens would be your attorney's responsibility. If the subcontractor contacts you for payment refer them to the attorney who represented you in the purchase. In Pennsylvania there is a new law that allows subs to file liens against your property even after you have closed and received free/clear title. Look into it if you're buying in PA. TH Properties was the builder, see website formed by the buyers: wheresbuilder.com
In Washington state can a mechanics lien prevent a property from closing escrow?
In most states a mechanics lean is paid off from the proceeds of the sale. It does not prevent a sale but is paid when the sale occurs. One man registered his lean five minutes before the closing and got his money.
I recently purchased a house in Texas and the previous owner replaced the roof but has not paid full balance to the contractor the contractor has threatened to put a lien on the house can he do that?
You should review your closing documents. In many states the seller must sign a lien waiver stating that there are no outstanding liens on the property and if any are filed as a consequence of work he has had done to the property, HE will make good on them, NOT YOU. I would call the closing attorney you used and any realtor involved in the transaction and raise Hell. The answer to your question is yes, unfortunately. It is known as mechanic's lien.
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