Home Contractor vs. Homeowner

When a contractor files a lien on a property, the first thing the homeowner frequently does is panic. This is generally because the contractor is now telling the whole world that the homeowner owes him money, and the homeowner is most likely embarrassed and humiliated. The reality, however, is usually not that bad. What does a lien do? A lien, in practice, will only affect the homeowner if he or she is trying to refinance, convey the property, borrow money or switch from temporary to permanent financing. If the homeowner has no intention of doing these things in the near future, then the lien can just stay there until the matter is resolved. If the homeowner is trying to do any of the above, then he has a couple of choices. By statute, the homeowner can post a bond to satisfy the amount of the lien, and then the lien can be dissolved. The bond does cost money, but it is perhaps the most straightforward way of getting rid of the lien. Another option is to call the contractor and n

Someone recently searched the web about the difference between mechanic's liens and real estate attachments. The effect of both is the same. The lien or attachment gives the holder a secured interest in property that protects the party if a judgment is obtained. The difference, however, is the means used to obtain the lien. A mechanic's lien is an automatic right that a contractor has that is afforded by statute. As long as a contractor who has worked at a property complies with the procedure, the lien can be filed on the property for the amount owed. A real estate attachment is not automatic. In Massachusetts, a party must demonstrate a likelihood of success on the merits of his or her case, and show that the defendant does not have liability insurance to satisfy a potential judgment against him. If the attachment is obtained "ex parte," without notice to the other side, then he must show that there is a likelihood that the property is going to be conveyed or t

For some reason, mechanic's liens seem to be shrouded in mystery. Although contractors have the right to lien property for money owed, they frequently seem not to do it correctly, and lose their opportunity to have security for a debt. The Massachusetts Continuing Legal Education book describes a mechanic's lien as follows: "A mechanic's lien is a claim upon real estate to secure payment for work or labor performed on or materials furnished for buildings or other improvements. The labor or material must have been provided at the request of the owner of the real estate." Under Massachusetts law, the creation of a lien occurs by recording a notice in the registry of deeds which must include a date by which the particular contract is to be completed. After creating a lien, the lienor must then record its statement containing the amount claimed due subject to "all just credits", and this statement must be filed within thirty days following the completion dat