I would like to know if a creditor can take our Church property by taking out a lean on the property. we owe roto rooter $2500 for a water connection. they had agreed to finance the work until they realized we where a commercial property and not a residential property this was after the work had been complete.
2 Answers from Attorneys
It is potentially possible for them to put a "lien" on your property. I suggest you work out something with them to prevent this from happening.
Laborers who improve your property can place liens on the property regardless if it is commercially or residentially owned under the Mechanics' Lien Law. However, there are strict restrictions that have to be followed and you do not provide the pertinent information to know if the time has passed for them to do this.
A lien is just a notation in the records. It does not entitle anyone to take anything. In order to do that, the creditor must first obtain a judgment against the church. There are no exemptions for organizations or businesses and with a judgment the creditor will then be able to direct the sheriff to start seizing assets. I agree with Ms. Coleman that the church needs to work something out.