Why Do You Need a "Waiver of Liens?" 09/08/2010
I’m old enough to remember the days when a handshake between two business professionals “sealed the deal.” Everyone was happy. It was a real WIN-WIN situation. Well, not only is a handshake not good enough anymore, even a signed contract between a homeowner and a general contractor can bring potential financial woes. That is, unless proper steps are first taken such as having your contractor file a "Waiver of Liens" on your behalf. Consider this scenario: You hire a contractor to install replacement windows in your home. You pay him one-third of the total dollars owed when you sign the agreement (contract), the second third when the windows get delivered and the final payment when the windows are installed and the job is done. You are a satisfied customer and give yourself a pat on the back. Two months go by and you are very happy with your windows. In fact, you are so happy that you have been telling your friends and neighbors. Now that’s a real satisfied customer. That is until you learn that your contractor never paid the window supplier for the total amount of the windows and now that same contractor isn’t returning your calls. What happens next is that the window supplier, who wants to get paid for the windows asks you for the money. You told him that you already paid the contractor for the windows and it isn't your problem if he didn't pay the window supplier. Oh, but unfortunately, it is and the window supplier, in order to get paid something, files a lien against your home. Now, when it’s time to sell your house, after the mortgage company gets its money, the window supplier is next in line to be paid before you get the balance – if there is one! A good contractor pays its subcontractors and suppliers on time. That is one of the ways to tell if you are dealing with a reputable business. A good contractor will also tell you about and file a Waiver of Liens on fr you in county court. Don't become a victim! Before you hire a contractor, make certain that you understand steps that you need to take to protect yourself. Visit the following Web site: http://www.free-legal-document.com/lien-waiver.html for more information regarding this important topic. Visit http://thomaskorte.com/wp-content/uploads/2008/06/contractors-final-release-and-waiver-of-lien.pdf to view a Waiver of Liens Form. CommentsLeave a Reply |  Kathryn M. Barto AuthorHi! ArchivesOctober 2010 Categories |
RSS Feed