Why Might a Construction (Mechanic’s) Lien Be Filed?
Whether the project involved building a new home from the ground up or a simple kitchen remodel, construction projects tend to involve multiple parties and complicated contracts. A general contractor may negotiate the contract; however, the materials will be provided by various suppliers and the work will likely be performed by several different sub-contractors who have employees working underneath them. If everything goes as planned, the homeowner will pay the general contractor per the terms of the contract and the general contractor will then pay suppliers and sub-contractors who then pay workers. If one or more of the parties involved in a private party construction project did not get paid, the aggrieved party may be entitled to file a mechanic’s lien.
What Is a Mechanic’s Lien?
A mechanic’s lien (commonly known as a “construction” lien) is a legal tool that allows a qualified party to get a court order attaching a lien to real property. The lien clouds the title to the property, meaning the owner(s) no longer have a clear title to the property. The lien remains attached to the title until it is satisfied, either by paying the lienholder the amount due or as part of the proceeds from the sale of the property if the lien remains active at the time of closing on a sale.
Who Can File a Mechanic’s Lien?
In Georgia, a third party who contributed labor, supplies, or services to the construction or improvement of privately owned real property may be able to file a mechanic’s lien. This may include, but is not limited to, the following:
- General contractor
- Material suppliers
What Can a Property Owner Do to Prevent a Mechanic’s Lien?
For a homeowner, a mechanic’s lien filed against the property results in a problematic title. Moreover, there may be a legitimate reason why a property owner failed to pay according to the construction contract. Common ways to prevent a mechanic’s lien from being attached to your property include:
- Challenging the procedural requirements for filing a construction lien.
- Proving that the work or service was not satisfactorily completed.
- Proving that the materials provided were sub-standard or otherwise lacking.
Speak to an Experienced Georgia Construction Liens Attorney Today
To ensure that your interests are protected when a construction lien is filed, contact an experienced Georgia construction liens attorney to discuss how we can help you by calling 678-784-4150.