(Sub) Contractor threathened to put lien in the project house

2 Replies

Hi,

Anyone has experience in getting letter from a company that threathened to put a lien in the house?

I am working a project to fix and flip; I work with one contractor for interior and exterior. We also did small concrete work that he needs to 'subcontract' ; he said it is a friend of his and he has been doing some projects in the past.

Fast forward few weeks later, I got a letter in the mail requested some 'money that has not been paid', in the amount that almost double that I paid for. I did not recognize the the name of the person that requested the service in the letter so I contacted my contractor and he did not know know who that person is.

The company that sent me the letter is: Robertson's. I checked the Yelp review and they have horrible reviews.

Any advise will be greatly appreciated. Thank you again! 

Sounds like a scam @Anita Effendi  . Here is my understadning of this (and I am in a different State and I am not a lawyer): Ffirst, you should have a lien waiver from your contractor after they have been paid. If a sub has not been paid the can file a lien against your property. But they have to do it right and very accuratley - it's almost like an eviction, just you are on the other side and they have to proof you wrong. So step one is that you get a Preliminary Notice. Then the contractor will have to actually record the claim at the county and then follow up with a lawsuit to enforce it. I have red that unethical contractors file the majority of liens and usually the liens become null and void based on the fact that the burden of proof lies with them. It’s costly, requires legal representation, proper documentation but more importantly they have to be 100% correct to win their case. Also, some contractors never intend to perfect the lien but instead use it as a tactic to either scare the homeowner into paying them more money, or to get back at the homeowner who has filed a legitimate complaint against the contractor. Ethical contractors use it only as a last resort and know they have a legitimate case. Depending on how motivated your "sub" is to go after you it might be an empty threat or you may have to get a lawyer involved and fight this out, which sucks and is a useless waste of time and money. But it sounds like they just saw on the outside there was some work being done and try to squeeze you for money. If they are licensed you can also "return the favor" and light them up, or at least threaten them to do so. It may be worth to just respond through a lawyer so they know you are not an easy target.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.