Full question:
Release myself from responsibility and/or lien put on my house for any unpaid money for work down to my house. Do I need to hire a lawyer to write this up or can I purchase a form and have it signed by my tenant and any known contractors. My tenants have hired and paid a tile contractor and hardwood floor contractor to put in floors. My tenants have singed a contract stating they will rent our house until June 2010 with intent to purchase at that time.
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: Idaho
Answer:
In situations where a tenant has hired a contractor to do work is it important to establish whether or not the work was done with the landlord/owner's permission. If a lien is filed as a result of such unauthorized work, the owner may have grounds for invalidating the lien.
This authority is derived from Section 9 of the Lien Law, which requires the owner of the premises to provide consent to all improvements in order to subject the property to a mechanic's lien. This defense is among those defenses which can only be raised after the contractor has commenced his foreclosure action.
If the lien is valid and the contractor is properly owed money for his construction services, the owner or tenant may wish to negotiate a settlement of the lien amount. During such negotiations, the contractor should be asked to provide proof or "backup" of the amount claimed. Such back-up commonly includes requisitions, invoices and pay-roll records. The contractor's incentive to provide such information is the prospect of a quick settlement, which is far less costly then bringing a foreclosure action.
If a settlement is reached, the owner or tenant must be mindful of the need to obtain a duly executed satisfaction of lien, which is filed with the County Clerk's office to remove the lien of record.
The landlord would want to review the terms of the lease he has with the tenant to determine any recourse the landlord would have against the tenant for monies paid by the landlord.
If work is being done to the rental property at the direction of the tenant but with consent and knowledge of the landlord, he may ask the contractors to sign a lien waiver.
A lien waiver is a release of a claim of a lien. Such waivers are governed primarily by state laws, which vary by state. Upon signing a lien waiver, all rights to attach a lien to certain property or goods is relinquished. Some typical liens, among others, which may be waived include tax liens and mechanic’s liens. A lien is often waived in order to allow property to be transferred or as a condition to making a payment for work on the property.
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.
