If a contractor has placed a lien on a property that you own, you will need to resolve the lien before selling the property. A lien is not something you can ignore and hope the buyer doesn’t notice. They will discover it when they do a title search.
What if I disagree with the lien?
You might not agree with the lien. You may dispute the figures charged or feel the builders did not fulfill their part of the contract. If this is the case, going to court is an option. If the evidence supports your case, a judge could declare the lien unenforceable.
Some lien disputes are down to differing views or misunderstandings. Others are due to a deliberate attempt to falsify figures or charge you for materials or work not provided. Willfully filing a fraudulent lien could result in a third-degree felony charge.
What if I need to sell the property to pay the lien?
When a contractor places a lien on a property, they do not want to own a piece of your property. They want you to pay them. If you intend to settle but do not have the funds available until you can sell the building, it can be challenging. The lien may be preventing you from selling the property. You will need an arrangement with the person or company who placed the lien so that you can process the sale to free the funds.
If a contractor or anyone else places a lien on your property, it is essential to seek legal help to resolve the issue. Delays in the selling process could cause you to lose a buyer.