Mechanics Lien

[alazo1]

Is it a pita to go file one of these on a residential customer?. Would I have court dates and bunch of inconvenience or is it just going to the courthouse and file.

thanks,
Albert

 

[Craig Lindquist]

It depends on what state you are in, but the do help you get paid when executed right.

 

[Farenheit251]

I am sure the laws are different depending on where you live. I never actually went through the process. But there was a form available at the office supply store called "notice of intent to file lien". Very official looking and really freaks people out. Twice I posted one on people's front door and was paid promptly. Brian E

 

[alazo1]

Thanks for the response. I'll look into it and file if it's not too bad otherwise your idea sounds good Brian. We've called this lady 3 times and have gotten nothing but attitude. Best cleaning ever she said when we cleaned, nice but pay for the freakin service dumbass. This lady is in charge of a lot of condos for a big developer and we thought maybe would be a great opportunity so I cleaned her house at a discount.

I did the halls and a bunch of apartments for one of their buildings as well managed by someone else. Took over 3 months to pay with the same "I'm the gift of the world how can you bother me" attitude. Finally paid and called a week later to do some cleaning. Had to be the same day (not emergency). We couldn't accommodate till next day. Guy says, no thanks when I need you I need you, I'll get somebody else. I long for the day the bastard calls to say they need our services again.

Albert

 

[Loren Egland]

You should have just said due to it taking 3 months to get paid the last time we cleaned for you, we made the decision to fire you as our customer. All of our other customers pay us the same day our service is rendered. This is the type of customer who qualifies for our service. If you like, I can refer you to a cleaner providing the type of service you are looking for (perhaps a janitorial firm that does commercial work)

Me bad.

 

[Bryan Irvin]

I haven't actually had to put a lean on any property yet, that's because just telling them you're gonna do it works EXCEPTIONALLY well! Each time I just tell them that if I haven't received a check by X date, they leave me with no other option but to place a lien on the property. Had to do that 2 times this year with water losses. Both times parties involved kept saying the other guy owes not us. Save yourself some headache, on the bottom of your cleaning invoice, put a line for the customer to sign, BEFORE YOU START WORK making them aware of the cost, as well as terms of payment.

**IF YOURE DOING WORK FOR FRIENDS, MAKE THEM SIGN TWICE!


Bryan

 

[KBRENNY]

I did work for a new home builder here in the Dallas area and they got slow on paying. Eventually they stopped paying completely. Once they were 90 past due I refused to do anymore work for them which in turn upset the person who called in to schedule work. They told me they would stop using me if that was my attitude and I asked if they would continue to work if they were not getting a paycheck every week. I was forced to file liens on 18 houses that remained unpaid.

Here in Texas you will

first: obtain a form 1036 (affidavit for subcontractor for mechanic's and materialmen's lien) you will need one for each individual address

second: Check with you county tax office to obtain the legal description of said property and the current and correct owner.

(even though the work was done for the home builder, and the home had already sold to the new owner, it was legal here to file a lien in the new owners name for work previously completed and unpaid)

third: fill out the form and make sure it is done correctly, one mistake and it can be released without your knowledge. (most tax offices here will have a sample for you to go by for the proper location of all the information and in what format to put it in)

fourth: have the form notarized by a legal notary before taking it to the tax office to file. After it has been notarized make sure to get two copies. One for you and one to mail to the homeowner.

fifth: Take completed form to the tax office and file with clerk. There is usually a small fee involved but you can recover that also.

sixth: Mail a copy with a letter explaining yourself to the person who the lien was filed against. It is best to mail it certified for your records. If in the event the homeowner refuses the letter it will still be a standing lien as long as you have proof of such.

In Texas you can file the lien for the amount due for work done, the cost of notary, travel expense incurred to file, cost at county clerks office to file, and ( BONUS) after 30 days after work has completed up to 21% interest.

I was informed by a lawyer that if you go for the full 21% interest (compounded monthly), and it goes to court, the judge will look badly toward you, he advised me to go 18%. Do not stretch or exaggerate any of the fees as it will look bad on your part if it ever goes to court.

After I have filed and mailed my letter I do not worry anymore. One of two things will happen. You will either get a phone call the instant they know the lien is filed and try to pay, or they will disregard and blow it off. In the second option you will eventually get paid because they will never refinance or sell the home without you signing a release of lien. (they have to pay you for your time to do this also).

With the new home builder first mentioned they tried paying only the original invoiced amount due when they were informed of the lien.
If you cash that check you put yourself in a bad situation. Do not accept partial payment unless that is what you are willing to accept in total.

This also opened the home builder up to a lawsuit as when they sell a new home here the bank / company requires them to sign a legal document stating that all materials and subcontractors are paid in full at the time of sale / closing. If they knowingly have falsified this form they can be charged criminally and sued by the new homeowner and / or his lender.

 

[Steve in Omaha]

Bryan says,

**IF YOURE DOING WORK FOR FRIENDS, MAKE THEM SIGN TWICE!

Sounds like there is a story there,

eh, Bryan?

 

[Bryan Irvin]

I got a call from a friend on a Saturday evening, a contractor was working on his dads house put a screw in a water supply pipe. The kitchen ceiling and wall were wet. I went right out, did my thing, and had them dry in a few days. The contractor refused to pay me even though the flood was his fault. I couldnt take the contractor to court, he didnt hire me. After 2 months of going back and fourth with the contractor about the bill, I tell the homeowner that I came out when he needed me, dried his house, and I need to get paid. He tells me dont worry, he will get the contractor to pay me. Even though it was the contractor who caused the loss, the homeowner is the one who called, not the contractor. According to my lawyer, if I'd taken the contractor to court, all he would have had to say to the judge is that he didnt call me, or hire me. Long story short, a few more weeks after all this, I had to threaten to put the lien on the house to get a check from the homeowner. I got my check last Monday, on the 89th day.

Bryan

 

[Guest]

In my state you can't file a mechanics lein for cleaning. Only if you do construction and it can't be more than 120 days after you last did work in the home.

Dave

 

[KBRENNY]

There are time limitations here in Texas also. The court allows 120 days from the time of completion of work. Unless you have proof you were normally not paid in a timely manner, then they allow 120 days from the date in which you normally would have been paid for the completed work. This is only if you can provide proof of habitual late payment from the company in question.

 

[GRHeacock]

It's probably different in each state- but what has worked for me 100% of the time is-

at 90 days late, I send a letter, with the original bill enclosed, plus late fees, the letter simply states, if this is not paid within 10 days, the matter will be turned over to my attorney for collection.

I never had to turn any over to my attorney, just the threat worked for me.

But, I would have turned over to my attorney, just like I said I would, but they did pay.

Gary

 

[steve g]

I did work for a new home builder here in the Dallas area and they got slow on paying. Eventually they stopped paying completely. Once they were 90 past due I refused to do anymore work for them which in turn upset the person who called in to schedule work. They told me they would stop using me if that was my attitude and I asked if they would continue to work if they were not getting a paycheck every week. I was forced to file liens on 18 houses that remained unpaid.

Here in Texas you will

first: obtain a form 1036 (affidavit for subcontractor for mechanic's and materialmen's lien) you will need one for each individual address

second: Check with you county tax office to obtain the legal description of said property and the current and correct owner.

(even though the work was done for the home builder, and the home had already sold to the new owner, it was legal here to file a lien in the new owners name for work previously completed and unpaid)

third: fill out the form and make sure it is done correctly, one mistake and it can be released without your knowledge. (most tax offices here will have a sample for you to go by for the proper location of all the information and in what format to put it in)

fourth: have the form notarized by a legal notary before taking it to the tax office to file. After it has been notarized make sure to get two copies. One for you and one to mail to the homeowner.

fifth: Take completed form to the tax office and file with clerk. There is usually a small fee involved but you can recover that also.

sixth: Mail a copy with a letter explaining yourself to the person who the lien was filed against. It is best to mail it certified for your records. If in the event the homeowner refuses the letter it will still be a standing lien as long as you have proof of such.

In Texas you can file the lien for the amount due for work done, the cost of notary, travel expense incurred to file, cost at county clerks office to file, and ( BONUS) after 30 days after work has completed up to 21% interest.

I was informed by a lawyer that if you go for the full 21% interest (compounded monthly), and it goes to court, the judge will look badly toward you, he advised me to go 18%. Do not stretch or exaggerate any of the fees as it will look bad on your part if it ever goes to court.

After I have filed and mailed my letter I do not worry anymore. One of two things will happen. You will either get a phone call the instant they know the lien is filed and try to pay, or they will disregard and blow it off. In the second option you will eventually get paid because they will never refinance or sell the home without you signing a release of lien. (they have to pay you for your time to do this also).

With the new home builder first mentioned they tried paying only the original invoiced amount due when they were informed of the lien.
If you cash that check you put yourself in a bad situation. Do not accept partial payment unless that is what you are willing to accept in total.

This also opened the home builder up to a lawsuit as when they sell a new home here the bank / company requires them to sign a legal document stating that all materials and subcontractors are paid in full at the time of sale / closing. If they knowingly have falsified this form they can be charged criminally and sued by the new homeowner and / or his lender.

in texas since its a homestead state, paying your bills is often optional, I had a judgement against my ex wife and wanted to collect, an attorney just laughed at me, unless they have property like the builder in the above case do you have a chance at getting anything.

 

[brucehudson]

In California, you must first serve them a preliminary notice. (similar to the notice of intent referenced above) There is a specific form required by the state. (If you need, I can E-mail to you.)

If within 20 days of receiving notice they do not cure the default, you file the lien with the recorders office. (A specific form for that also)

The preliminary notice will likely get you paid...

Let me know if you need those California forms.

 

[brucehudson]

In my state you can't file a mechanics lein for cleaning. Only if you do construction and it can't be more than 120 days after you last did work in the home.

Dave

You could likely argue that the cleaning was restorative in nature (prolonging life of carpet, improving health, etc.) so unless there has been a specific court ruling that carpet cleaning is not restorative or an improvement, then you should be able to.

On that note, in IL you have to file a court action for the mechanics lien on an owner occupied home, so I would recommend (not legal advice) that you hire an attorney if you were going to take that step.

 

[Guest]

The purpose of a mechanics lien is to make sure the materials on the home are paid for. Small claims court is the place to go to get paid for cleaning.

Dave