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Can I fight a construction lien placed by a contractor on my property?
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A lien refers to the interest or debt owed by a property owner attached to the property to assure payment of that debt or encumbrance from the property owner. A construction lien is one example of this. This refers to the legal means by which contractors, builders, mechanics, architects, and so on, place a lien on the property to ensure payment once the work is done. When the property owner makes full payment for the services rendered, the lien holder will release the lien. However, if there is default in payment, the lien can lead to the foreclosure of the property so that the people who rendered their services in the construction of the property will be paid accordingly. There are certain stipulations under the law that also gives protection to the property owner during this process. For one, the property owner has the right to be given notice of the entitlement of the lien. Also, workers are required to notify the owner regarding the commencement of work so that the owner can start preparing the payment. Notification regarding the work period and completion of the project should also be served to the owner. If the lien holder will request foreclosure of the property due to the default in payment, the property owner can fight back.
Since fighting a construction lien can be complex, it is imperative for one to have assistance from a reputable real estate lawyer who specializes in construction lien laws. If the property owner can prove that his/her rights were not met during the process (e.g. owner was not notified regarding the start of the construction), he/she can build a strong case against the lien holder.
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