Homeowners: Fight Your Construction Lien if You Get One

Earlier, we discussed all the steps you should take to avoid a construction lien being placed on a property.

After all, a construction lien being placed on a property is a very serious legal matter – one that could result in foreclosure on the property, with the property being sold to pay a construction company.

Remember, there are many ways to substantially reduce the chances of having a lien placed on a property, but even the most meticulous record-keepers, those who are on top of everything, can still have a construction lien filed against their property.

Thankfully, the process of filing and collecting on a construction lien is highly regulated, including specific timing issues that must be adhered to. As such, this is one of those cases where having an experienced real estate attorney, a person who understands all the rules and regulations, is essential to success.

The attorneys at The Orlando Law Group specialize in helping property owners understand their rights in construction law in Orlando, Sanford, Winter Garden and Kissimmee.

What is a Construction Lien?

We discussed this in past articles, but to recap, the construction lien is basically a legal tool that companies in the construction industry use to ensure they are paid for their work. If they are not paid, they have the right to file a lien and eventually take control of the property.

In most construction projects, a lien will never be filed. That’s because generally people pay for the services they receive and companies pay the firms and employees they use to build.

However, that’s not always the case.

A case in Southwest Florida is a worst-case scenario. Late last year, a company building hundreds of houses there closed, saying it was more than $11 million in debt. More than 200 subcontractors were not paid, and dozens of houses were not finished.

Now, those homeowners are facing foreclosure and having their property taken by subcontractors who have legally put a lien on the property in an attempt to be paid for their services and materials.

Here’s what to do after receiving a construction lien.

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