Builders’ Liens
If you have performed work on, provided services for contractors/builders, or supplied materials to a property for the purposes of improving that property, and you are not sure if you will be paid, you may want to get advice from a lawyer. There are various actions, such as sending a demand letter or registering a builders' lien. A builders' lien is a lien on the land owner's property. A claim of lien must be registered within sixty days of the completion of work or services at the Land Registration Office for the county in which the property is located. You must give notice of the lien to the land owner. Once the lien has been registered against the property, the property cannot be sold, mortgaged, refinanced, or receive any further construction draws, until the lien has been satisfied. Having a lien against a property will often ensure payment of your outstanding invoice, which can include payment of your legal fees and costs to obtain the lien.
If your invoice is still not paid after the lien is registered, you must file a Notice of Action and Statement of Claim at the Supreme Court and ask that the court issue a Certificate of Lis Pendens. The land owner and the general contractor, if applicable, are named as defendants on the court documents. The filed Notice of Action and Statement of Claim must be served on the defendants and the issued Certificate of Lis Pendens must be registered at the Land Registration Office within 105 days of the completion of work or services. The defendant will have a specific time period to file a defence. If a defence is filed, negotiations will proceed between the parties or their lawyers, or through the court if the parties cannot reach agreement. If the defendant does not file a defence within the allowable time period, you can proceed to have your money collected. One option of collecting your money, if a defence is not filed, is to file an Execution Order and then have the Sheriff collect funds by garnisheeing wages, collecting funds from bank accounts or selling the property by way of Sheriff's Sale. You can also simply wait until such time that the home owner sells, mortgages or refinances the property.
Once your lien has been paid, you can release the lien by having your lawyer prepare the necessary documents, or the defendant can have the documents prepared and provided to you to sign.
If the sixty day time limit has expired, and you therefore cannot proceed with a builders' lien, you still have the option of proceeding by litigation through Supreme Court without a lien (for amounts claimed that are in excess of $25,000) or through Small Claims Court (for amount claimed up to $25,000).
A lawyer can provide you with advice on the best route for your circumstances.
Please note this is not legal advice for your specific situation.
