Q: Lien against my home
We recently built a home and it was completed on December 22nd 2016. We went through US Bank and have been taking draws from US Bank monthly to pay the builder who pays the subcontractors. We recently received a certified and notarized letter from one of the subcontractors stating that they never were paid. They also said that if they did not receive information within 10 days, they would take a lien against our home. What should we do next? I called the builder and he said that he paid the subcontractor.
A:
While letters like these are not pleasant, you do not need to worry. Liens cannot be attached without legal process or a signed document by you (the homeowners) authorizing attachment as a security (this is common for lenders, but nearly unheard of for private parties). In other words, the sub will either need to sue you and win or you have to pre-authorized the lien (this cannot be done with a simple contract). Even then, there may be some issues related to privity because sub may not have directly contracted with you but with the builder (i.e. this may be a dispute between the builder and sub).
The best advice is to get copies of all proof of payment and billing from the builder (any decent builder should have extensive records). Review the records and then contact the sub. Since it is very early in the process, you do not need to contact a lawyer immediately (unless you want peace of mind), but you may need to contact a lawyer if the problem persists. Definitely contact a lawyer if the builder is unwilling or unable to provide detailed accounting, as this may be a sign of malfeasance by the builder.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
