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Can a contractor place a lien on a house after the sale?
I sold a house in April and I have a sub-contractor who was not paid by the general contractor I hired. Apparently, the general contractor I paid kept the money and did not pay sub-contractors. Can the sub-contractor place a lien on my house even though I sold it? Thanks. in Michigan Also- Title was cleared when I sold the property in April. I no longer own this house. So can he place a lien and if so, how does that effect me?
Public Comments
- It depends on the laws in your state. In Oregon we have a law that allows contractors 75 days from the date the Completion Certificate was filed to file a lien. Those liens take precedence over any other lien, including a mortgage. For that reason, title insurance companies here offer what is called Early Issue policies that protect borrowers from these liens. If they are filed, the title company works to resolve the issue. If your state has no such provisions, as the seller you are responsible for clearing title for the buyer. itle cannot be cleared until such time as this lien is cleared.
- Sure he can. If he is owed money he can lien the property and that stays until he gets paid. Lenders will not lend until all liens are paid and title is clear.
- If you've already sold the home to a new buyer, he will have no right to put a lien on the property now.......Plus your buyer probably has title insurance that will protect him/her in case a lien is attempted. The sub probably missed their "window" to get a lien against your old property. The sub-contractor's agreement was likely with the contractor and not you, so you will likely not face any viable lawsuit. If you made any agreement yourself with this sub-contractor, you may be open to a lawsuit or having a lien against a new property you own. All that does not sound too likely according to how I read your question.
