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What happens when a contractor files a bond against a property that has a construction lien?

What happens when a contractor files a bond against a property that has a construction lien?

Q: Can you be a subcontractor without a contract?

Yes, a subcontractor can work without a formal written contract, but this is risky. Without a contract, it may be harder to enforce payment or protect your rights. It's advisable to have a written agreement to clearly outline the scope of work and payment terms.

Q: Can a contractor sue me without a signed contract?

Yes, a contractor can sue you even without a signed contract. If they can prove that services were rendered and that you owe payment, they may have a valid claim. However, the lack of a contract can complicate the case and affect the outcome.

Q: How do I fight a construction lien?

To fight a construction lien, you can challenge its validity by proving it was improperly filed or that the amount claimed is incorrect. You may also negotiate with the claimant or file a lawsuit to have the lien removed. It's advisable to consult a legal professional for guidance on the best approach.

Q: Can a subcontractor file a lien without a contract?

In many cases, a subcontractor can file a lien even without a formal contract. However, they must demonstrate that they provided labor or materials and that the property owner benefited from those services. Local laws will dictate the specific requirements for filing a lien.

Full question:

If you have a construction lien filed on a property for not paying labor and the contractor files a bond instead of paying the lien, what is the next step?

Category: Contractors
Subcategory: Construction Liens
Date: 04/07/2025
State: Arkansas

Answer:

Has the bonding company obtained a release of the lien by posting the bond? If so, the next step would appear to be filing suit against the property owner, contractor and bonding company seeking payment of the contract price, fees and costs.

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.

FAQs

Can you file a lien without a signed contract?

Yes, you can file a lien without a signed contract in some circumstances. For example, if you provided labor or materials to a property and the property owner accepted those services, you may have a valid claim. However, the specific rules can vary by state, so it's essential to check local laws regarding lien rights.

Can you be a subcontractor without a contract?

How does bonding around a lien work?

Bonding around a lien involves a contractor obtaining a bond to secure the payment of the lien claim. This bond effectively replaces the lien on the property, allowing the contractor to continue work while the lien dispute is resolved. The bonding company may then be liable for the amount owed if the contractor does not fulfill their obligations.