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There are few construction companies who think that they can get away for not paying their contractors for their work but they can be absolutely wrong and can fall flat on their faces if they ever intend to do it that way. Contractors or any sub-contractors who have worked on a project can place a lien on the property if they are not paid their dues in full. They only need to submit the invoices to the court and then the court will give a ruling in their favor. So there is nothing known as getting away so easily from the strong clutches of the law of the land. However, every state in the US has some variance in their laws and the contractor who is placing the lien must be aware of these laws or else he might invite trouble for himself.

There are different types of liens that a person who has done work can place on the person who is not willing to pay him. But as far as the work of a contractor is concerned, the lien that he can place is known as “Mechanic Lien”. Other than this lien he can’t place any other kind of liens on the property and if at all he does try to place any other lien, it will go against him. Therefore, before he does anything with the lien, he needs to update himself with the process on how a lien works and how he can go ahead with placing it.

He may not know everything about it but some very basic details which ideally every contractor is expected to know. For instance, within how many days he can place a lien on the property and if at all he exceeds those number of days, will he be able to place any lien or have to follow a different process altogether. These small details are important to be known. Other than this, the detailed knowledge about the matter is to be known by the attorney. So if a contractor has to place a lien on a property, he has to first consult his attorney about it and on his advice he may take further action.

In a mechanic lien, a contractor or a sub-contractor or anybody who has worked on a given property and is not paid his dues can place a lien on the assets of the property. Once the lien is placed, you have to send the notice to the project owner and have to keep the notice in public so that no one later can say that they did not know about any such lien on the property. Especially the banks or any financial institutions have to specifically know about any liens on the property. If there is any lien then they will not refinance the property or will not give any loan keeping that as mortgage.

So before you place a lien, it is important for you to know the kind of lien to be placed and not haphazardly place any lien.

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