I’d like some input please. I’ve got a rehab in Cleveland that is currently for sale. I used a contractor and the work is now complete. However, my real estate agent has been contacted by the carpet installer and sent me this note:
“Over the weekend I received a call from the man who installed the carpeting. He his threatening to put a lien on the home if he doesn’t get paid. He wanted your information but I wouldn’t give it to him over the phone. I informed him I would contact you Monday and give you his.”
Is this even possible? I have paid my contractor in full and this is obviously between he and the carpeting sub-contractor. I don’t think the carpeting guy would be able to put a lien on my house as I was not in a business arrangement with him and am in no way the one who owes him money.
I have heard of this happening from my mentor. Sometimes it’s a scam between the sub and the GC to get more money out of you. That is why next time, you have all the subs sign a lien waiver before you pay or give final payment to the GC.
Since you are in Ohio, this applies to you:
Notice of Furnishing – Subcontractor must serve Owner
Under Ohio law, if a notice of commencement has been prepared and recorded, the law requires a subcontractor or material supplier to serve a notice of furnishing in order to preserve its lien rights. The notice of furnishing is a simple form intended to put the owner and original contractor on notice of a subcontractor’s or material supplier’s involvement in a project so that its claim can be taken into account when payments are made. In the absence of a recorded notice of commencement, a notice of furnishing is not required.
Failure to Serve Notice of Furnishing
Under Ohio law, mechanics lien rights may be lost if a Notice of Furnishing is not served timely on the Owner, after the recordation of a Notice of Commencement.
Affidavit for lien
Under Ohio law, in order to perfect a claim to a mechanics’ lien one must execute and file with the recorder of the county in which the improved property is located an affidavit that sets forth the following:
The amount due over and above all legal setoffs;
A description of the property to be charged with the lien;
The name and address of the person to or for whom the labor or work was performed or material was furnished;
The name of the owner, part owner, or lessee, if known;
The name and address of the lien claimant; and
The first and last dates that the lien claimant performed any labor or work or furnished any material to the improvement giving rise to the lien.
Timeliness of the filing of the lien & Service on Owner
Ohio law sets certain time limits in which to file the affidavit of lien and to serve the owner.