What You Need to Know about Your States Construction Lien

You need to know that under most state construction lien laws, anyone who provides a service, labor, or materials for the improvement of real property has a right to file a lien against the property's title for non-payment. Furthermore, if you do pay a contractor for a job and the contractor fails to pay the subcontractors who supplied the labor and the materials suppliers, you are still financially responsible for paying them, even though you have paid the contractor in full. In other words, you could end up paying for a job twice if you do not have legal proof that everyone was paid in full. The only way to avoid having this happen to you is to require that everyone who supplies services, labor, and materials on your property cleanup sign your state's version of a release of lien upon final payment. This way, you will have legal proof that everyone connected to your property cleanup has been paid in full.

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