Construction liens can prohibit your ability to sell a home or secure financing. When a lien is filed in error or for an improper purpose, it’s important to speak to a skilled NJ collections lawyer about your options.
Requirements of a Construction Lien
Construction liens are reserved for contractors who perform work or improvements on real property. If payment for the work isn’t received, the contractor has the option of filing a lien on the property. The property owner is then prevented from transferring, selling or even refinancing the property unless the lien is discharged. This can cause serious financial hardship.
How an Attorney Can Assist with Discharge
The first thing an attorney will likely do is review the circumstances under which the lien is filed. If the contractor failed to follow proper procedures, this can lead to cause for discharge. Additionally, if a lien is filed to harass the homeowner, an attorney can discuss ways to prove it. If the amount owed is in dispute, the homeowner may be able to file a bond in court and have the lien removed.
Penalties for Wrongfully Filed Liens
If filing requirements were not met or if the lien was otherwise wrongfully filed, the lienholder can face penalties. Specifically, the lienholder may be liable to the homeowner for his or her attorney’s fees incurred in defending the case.
Contacting an Attorney
Make sure you keep detailed records of agreements, payments made or other written documentation of your dealings with the contractor. These can assist your attorney as you build a defense.
To discuss your case with an experienced NJ collections attorney who can help you implement an aggressive defense strategy, contact the offices of Snellings Law, LLC. To schedule your appointment for an initial consultation call (973) 265-6100.