Full question:
In Va. as a general contractor can you file a notice of contract at the court house and post it on the job to keep liens from being filed against property, just funds remaining due to sub for liens by 3 dr tier vendor or sub?
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: North Carolina
Answer:
In Virginia, if a contractor hasn't been fully paid, they typically use a conditional release form. The ability to file a notice of contract and prevent liens depends on the type of release form signed and whether it's a waiver or release. It's advisable to consult a local attorney to review your specific situation and documents.
During construction, property owners can require lien releases or waivers from subcontractors and suppliers. Without these waivers, the property may be subject to liens from subcontractors, even if the general contractor has been paid. Lien claimants, such as subcontractors, are protected because their materials and labor become part of the property.
Homeowners can request lien releases as part of the contract with contractors and subcontractors. These releases should be clearly stated and independent of any agreements with banks. Although 'lien waiver' and 'lien release' are often used interchangeably, a release indicates that a claim has been satisfied, while a waiver relinquishes a known right.
There are different types of lien waivers:
- Interim Lien Waiver: Used for progress payments, waiving lien rights through a specific date.
- Unconditional Lien Waiver: Used after final payment, fully releasing all future lien rights.
- Conditional Lien Waiver: Used when submitting an invoice, dependent on receipt of payment.
When a lien waiver is signed, the right to file a mechanic's lien is forfeited, but it doesn't prevent other claims like breach of contract. For more information, refer to Virginia statutes such as § 43-3 and § 43-4 regarding liens and waivers.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.