contractor lien after sale


#1

looked at a property a guy had half finished and ran out of money. didn’t buy it but got me thinking… if someone buys a partially done property like this, could an unpaid contractor come back in a month and put a lien on a house if it had been sold to someone else?


#2

Mechanics lien

The answer is YES. A person who did work or supplied materials for a property that wasn’t paid can file a mechanic’s lien, even if he was a subcontractor or supplier. Each state has slightly different rules on this, but basically someone who wasn’t paid has about 60-90 days after last work or materials supplied to file a mechanic’s lien against the property. The lien, however, is not good forever. The contractor or supplier must file suit or the lien expires, usually in about a year (depending on the state). To get rid of the lien, you must sue in court and get a Judge to decide the issue. If the seller gives you a warranty deed and the lien shows up after closing, you can sue the seller for breach of warranty. This is why it is common for a title company to ask for an affidavit from the seller attesting that no work was done that was not paid for.


#3

The reasoning given by William states the obvious.
P.S. My answer is yes