I have property in texas that a contractor is threatening to put a lien on even though he has been paid in full. There was no contract only verbal and they did not even finish the job. I have proof that they were paid. Can they still put a lien and how do I stop them. I am selling the property and don’t want the title clouded.
There are very specific rules for placing a lien and they vary by state. I don’t know TX law, but most states require some kind of written contract. If the lien is placed, I would guess you could have it removed and counter sue for damages.
How does either party prove the following?
Scope of work agreed upon
Terms of the job
And because there is nothing to prove in regards to any of that how does a third party determine whether or not work was done as agreed upon? I agree with BLL that a lein probably cannot be placed without a written agreement. By the way, what are you thinking doing ANYTHING without a written agreement? What if he failed to meet the terms of the agreement, where would you be then? I think from this point on you’re going to need to at least write a quick outline up of what is to be done, the price, what he should do if something outside of the scope of work needs to be done, payment terms, etc or you can count on having issues like this crop up again and again. You don’t need your lawyer to do it, just something simple that outlines everything that needs to be done. You can even get specific if you want, such as specifying using certain suppliers for the materials, which materials are to be used, etc.
It may depend on your state, but it is my understanding that mechanics liens expire rather quickly. Which may not help if you are flipping.
Liens can make for a nice headache.
When working with a contractor I’ve never used before or for big jobs (roof) I always get the contractor to sign a lien release before I hand him the check. For honest contractors this is no big deal.
Saved my butt once.