We are buying a modular home. The modular home center got a contractor for our foundation, who in turn subcontracted the job to someone else. The subcontractor was let go midway through the project by the original contractor and was not paid for his service. The subcontractor has placed a lien on my property. We own the property, and we have not yet closed on the house. Is what is happening legal and will it effect our closing??
1 Answer from Attorneys
Re: mechanics lien
What is happening is unfortunate but not uncommon. It is legal for a subcontrator who has not been paid to use the mechanic lien process to place a lien on the property. This lien will affect any closing. The issue needs to be dealt with either by making sure the subcontractor gets paid enough by the contractor to agree to release the lien, or by engaging an attorney to review the situation and determine if there are other avenues to protect your interests since it is possible the lien may not have followed all of the statutory requirements.