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Monday, July 15, 2024

What to Know About Construction Liens in Olympia

Construction liens are legal claims that contractors file on a design or building for non-payment of services. A contractor files a public notice on a certain property that states the property owner owes the contractor a sum of money. Also, a materials supplier or subcontractor can file a lien on work completed on a building. If you are one of these professionals, you can rely on a property law attorney in Olympia to help you file a lien on a piece of property, ensuring all legal requirements are met.

Construction liens provide notice to a possible buyer of property for the unpaid sum owed to a contractor, subcontractor, or materials supplier. They may prevent buyers from buying the property until the liens are cleared. 

Benefits of Construction Liens

If a construction lien is filed, it serves as an encumbrance on a piece of property and third parties who purchase the property get title subject to the filed lien. This prevents the refinance or sale of the property since a buyer or lender won’t get a property with a lien on it. A construction lien helps contractors and other construction professionals resolve payment issues. 

In addition, if the owner of the property fails to clear the debt associated with the lien, the lien holder can foreclose the property following a certain period. Also, if a lien is placed, this hastens the decision of the property owner to clear the outstanding debt. It’s an extra remedy for contractors aside from the right to take legal action against a property owner for a breach of contract. 

Causes of Construction Liens

Construction liens are commonly filed due to the following:

  • Non-payment. Contractors and subcontractors can put liens on property for nonpayment. The owner of the property is responsible for ensuring everybody who oversees the project fulfills their obligations. Otherwise, a construction lien can be placed on the property. 
  • Poor work. Construction liens can be put to force property owners and contractors to make sure the issue of poor work quality is fixed. 
  • Injuries. Any injury in the construction site can stall a project. Usually, injuries stem from worksite management issues and poor work quality. If somebody sustains injuries on site, legal and financial issues can be faced by the contractor or property owner. 
  • Excessive delays. Delays in construction can be costly. Contractors and property owners have a project timeline, so unexpected expenses can result in funding problems and reduced profits. A lien can be placed on the property if the construction is excessively delayed. 

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