Contractor Wants Me To Sign 20-Day Notice to Lien

[Pettrix]

I've had numerous contractors do work on my property with a handshake and I've paid all my bills.

There is a contractor that is bidding to do some work (under $10k) and he wants me to sign a 20-day notice with a notice to lien. This is signed BEFORE any work is done and it's an affidavit that if I don't pay, he then can put a lien on my property.

I've never had to sign such a document before and it bothers me for some reason.

 

[dragoneggs]

What about your other bids... maybe your second choice might be better in this case? I have never had a contractor ask me to sign as a homeowner but I have seen them do this with general contractors when acting as a sub.

 

[RNeumann]

Not unheard of. It's basically giving him permission to place a lien if he isn't paid. Sounds like normal contract language...he does work, you pay him. Most states require a contract and a licensed contractor for any work over about $1000. Google standard construction contract language for your state to verify. If you read the fine print you would see similar language for work on your car etc. If you are worried have him sign a lien waver in exchange for final payment. That is also standard with "by the book" type contracts.

Hire based on reputation and your own research of previous clients- not this lien language.

 

[Streetcar]

The lien language is standard contract. It sounds like he was burned previously. Many companies I work with have similar language in their contracts, but they will work on handshake if needed.

 

[PILOON]

A friend received notice of a lien from a bailiff.
Turns out a disgruntled contractor that outbid tried this tactic (to no avail).
Friend had 5 bids on the (over $500K job) and the disgruntled guy had threatened revenge.
He actually wanted to be paid for the time he spent on preparing the quotation.
In fact he was never invited to bid but basically was an ambulance chaser type of operator.
Also during the construction Mr Disgruntled sicked all the unions and agencies (like OSHA, etc) on the winning bidder,
Furthermore nearing completion a criminal fire was attempted causing 30 days delay.
Mr Disgruntled actually threatened my friend in my presence!

Now I was present during much of the proceedings and believe me I never would have even considered Mr Disgruntled due to his character, language and presentation, total lack of professionalism.

It is now 6 months passed the arson attempt and still no word from LEOs as to any progress much less an interview as to possible suspects.

 

[EddieWalker]

Trust your gut. If he wants to put a lien on your property for failure of payment, he doesn't need you to sign anything beforehand. He is just going all legal on you, which I personally don't care fore either.

As a contractor, there are a few things that I come across in potential clients that I consider red flags. One of them is when they start talking about the law, lawsuits and going to court. I've never been sued, hope it never happens, but I sure don't want to work for somebody that likes to inform me of their plans to do so. In my world, I do the work, the client pays me after it's done. If they are not happy, they don't pay. I've never had that happen.

 

[Egon]

Could be a case of Lein if payment holdback for unsatisfactory work?

 

[Tomtint]

We deal with them on every job, if the contractor is reputable I would not sweat it.

 

[hayden]

He's probably worried about getting paid, which is understandable.

But if you agree to what he's proposing, I think you are giving up all your leverage if he does a poor job or doesn't finish the job. If he declares the job done to completion, but you disagree, you would normally withhold payment until the discrepancy is resolved. The problem is that all he has to do is wait 20 days and he can slap a lien on your house and create a lot of motivation for you to just pay and be done with him.

So I would take this as a red or yellow flag and look into it more closely. Maybe you can find out if he has placed liens on other properties, and dig into why? I wouldn't be surprised if you find a customer who was unhappy with his work. Or find out who else he has worked for and do some blind reference checks? Don't just ask him for references - he will of course give you good ones. You need to find them yourself. Or if all this is too much trouble, just go with someone else, and maybe tell him why.

 

[kenmac]

In my state, you don't need to sign a contract for me to have a lien placed on your property for non payment of services

http://legalbeagle.com/8064151-place-liens-properties-alabama.html