Sub refuses to sign lien waiver

Sub refuses to sign lien waiver

Minneapolis, MN · Member since 2013 · 78 posts · 6 votes

Hello Team!

Quick question for you-- I recently completed a complete gut/renovation on a duplex in Minneapolis. 

For my final draw (I used a construction loan from a private bank), the title company is requesting that all subcontractors sign a lien waiver. Unfortunately, they told me this after some of the subs finished their work.

Everyone has been very responsive-- painting, electrical, plumbing... My tile/granite guy has gone completely dark on me. He has a history of doing this in the past, but this is extremely frustrating because a large amount of money is due to me (I've already paid out-of-pocket, and am waiting for this. 

I'm curious if any of you have every dealt with an issue like this? How would you corral him? Is there an alternative way to time-stamp that efforts were made to sign a lien waiver, but the contractor refused? From a title company standpoint, I totally understand they want to reduce all risk... any feedback/thoughts/ideas you have would be greatly appreciated.

Thanks,

Tom 

0Reply
58 views

Most Popular Reply

Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
11y

Perhaps showing the sub contract and copies of payment checks would be good enough if you explain the contractor has disappeared.  Obviously in the future use the good practices mentioned above. 

See this reply in the discussion

5 Replies

Jump to latestLatest
  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    11y

    "Efforts to get a lien waiver signed" are irrelevant, only the actual execution of one means anything.  As you probably realize now, you need to get partial releases signed as you make draw payments, and a final release signed Upon final payment, for your own protection, not just because a lender or title co. requires it.  You need to track him down.

  • Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
    11y

    @Tom Henderson

    Think about this way Tom. The contractor/subcontractors should NEVER get their money until you get your lien waivers. Otherwise, a sly contractor can simply hold you hostage for more money.

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    11y

    Perhaps showing the sub contract and copies of payment checks would be good enough if you explain the contractor has disappeared.  Obviously in the future use the good practices mentioned above. 

  • Minneapolis, MN · Member since 2013 · 78 posts · 6 votes
    11y

    Ned, Guy and Wayne-- appreciate your thoughts and feedback. Thanks guys. Chalk another learning lesson up to school of hard knocks. 

  • Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
    11y

    @Tom Henderson 

     My title company has been my best friend at times. I would explain the situation to them and see if there is a work around. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.