Legal Question in Business Law in Georgia

Is a verbal contract legal in use for lien on real property

My neighbor and I were in a verbal contract to do a reconstruction job. We agreed to pay for materials and labor and split the profits. I did this and did not get receipts because I trusted him. I did ask for receipts because there was a lot of money involved and he kept telling me that he would get them to me. I never got them and now the job is over and he says I still owe him a good deal of money for electrical work. He has hired an attorney and demands that I pay him or he will put a lean on the property. I have several witnesses that know that he received half of all the money paid for the job. Should I hire an attorney also? Everything between us was verbal, there are no written contracts. Please advise. Thank you


Asked on 10/14/02, 10:45 am

1 Answer from Attorneys
Byron Sanford Briskin, Cross & Sanford, LLC

Re: Is a verbal contract legal in use for lien on real property

The short answer is: "Yes, a verbal contract can be a valid basis for placing a materialman's lien on a peice of real property."

There are a number of potential issues which may impact whether it is possible or feasible for the other person to successfully make use of a materialman's lien or other means (such as filing a suit for breach of contract) for pursuing you in the situation you described.

It is important to keep in mind, with respect to liens, that there are very specific time and procedural requirements for properly filing materialman's liens under Georgia law. I would advise consulting with an attorney to find out what recourse you may have with respect to the monies being claimed by the other individual.

Read more
Answered on 10/21/02, 9:39 am


Related Questions & Answers

More Business Law questions and answers in Georgia