Legal Question in Real Estate Law in Minnesota

I recently built a new house that closed on May 7, 2010. A couple months later my builder went out of business and now I am getting calls from contractors and liens in the mail for materials and services he did no pay for. I have done some research and it would seem that we may not be liable since we paid the builder in full. This was a standard conventional loan and closing where the builder had their own construction loan. Are we liable and how do we get the contractors to leave us alone.

Asked on 9/28/10, 4:24 pm

1 Answer from Attorneys

Sam Calvert Calvert Law Office

You need to contact a local attorney who is familiar with the niceties of mechanics lien laws. Some of the contractors may be able to assert a lien against you, some may not. In large part it depends on who contracted with the contractor and whether they gave you the required pre-lien notice. Usually there is a title company or bank in charge of actually disbursing the funds during the process of construction. Did that happen in your situation? If so, I would immediately talk to them to see what releases they have and what releases they do not have, etc.

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Answered on 10/03/10, 4:34 pm


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