Asked in Real Estate InvestingContract Law
When making final payment on a construction contract how do you make sure the contractor doesn't file a lien afterword?
September 14, 2011 9:43AM
First make sure that you are 100% ready to settle with your contractor. Make sure he completed EVERYTHING that was supposed to be done. Go through your contract line by line before settling with the contractor. Once you make your final payment you have next to no recourse in some states. Now once you have decided that you are happy with the contractors work and have any corrections that they are going to do down in writing and signed by you and the contractor set up your meeting to pay your debt. The contractor should have a release of lien form. When he signs this if is stating that he has been paid in full and holds no interest in your home.