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Tips in Making a Payment Bond Claim

If you are a subcontractor or supplier who has supplied construction materials for a building project, you should make a payment bond in advance. A payment bond is a contract signed between the project owner or subcontractors and suppliers providing raw material for the developing project. The bond is subject to claim due to payments from the owner who give guarantee you to have enough fund to make full payment of service after the project completion. If you are a supplier, you need to get this payment bond surety from the owner of the project by signing a legal payment bond. Unfortunately, if the owner is unable to pay the full amount and dues are remaining for material supply or services, you need to file for a payment bond claim. As you have signed the payment bond contract in advance with the owner, you are eligible to recover the dues in a legal way. For this aim, you may contact the payment bond attorneys in your city. The experienced construction lawyers in the United States can help you better in this regard. So, you may approach them and file the payment bond claim case to recover the dues.

Filing a payment bond claim is a legal process that needs to file in the right way. If your project owner is unable to make full payment of material supplying or services, you need to first send him reminders for paying dues. In case, there is no response from the owner, you can use the power of payment bond contract signed earlier between you and the owner. This is your legal right of yours to file a claim for payment bond and recover dues through the legal process.

You should first send payment notice bond requests to the owner to make full payment or complete the dues. If you do not get the full amount or any response after sending several notifications to the owner, you are eligible to file payment bond claims. Hence, you need to prepare the payment bond claim notice and take the legal advice of an expert lawyer in the same domain too. The attorney of this matter will help you prepare documentation for notice on your behalf and send it to the owner to recover dues.

Here are some tips to prepare for payment bond claim notice through legal steps:

1. Follow Legal Terms of Payment Bond Claim and Prepare Notice

To prepare a legal and effective payment bond claim, you need to follow the terms and conditions linked with the process. Before you start the legal process, you need to send a payment bond notice to the owner in advance. In case of no response to the same act, you can raise the legal payment bond claim step. You should take an order from the court to use payment bond contract power and file a claim for the dues. Make sure, you send a legal notice to the owner for working on dues and make payment soon. Do not forget to take a copy of the legal notice from the court and the number of days to repay the amount.

Also Read: Payment Bond Claim Notice Requires More Than Mailing

2. Follow up with Bonding Company

Once you file the payment bond claim to recover the dues, you need to follow the bonding company or owner. The bonding company may delay your claim settlement due to any reason. Hence, you need to follow up for the same by sending reminders through email, messages, and calls time and again.

3. Keep Backup of Legal Proofs of Services

In case, the owner delays your payment bond claim and seeks real proof of services. You need to keep the backup of proof of all legal services provided to the supplier. You should collect all invoices or bills, material supplying receipts, orders, contracts, and more. All the proofs should need to secure for the future whenever asked to show them by the owner.

Hence, you need to follow up on all three steps or tips to file a payment bond claim and get dues in a legal way. For more details, you can consult a construction lawyer or payment bond claim, consultant. For instance, you can approach “National Lien and Bond”, which is a law firm to get legal help for construction or payment bond claim cases. For more details, visit the website mechanicslien.com

Original Source: https://bit.ly/3NdcuQQ

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Conditional & Unconditional Lien Waivers: What They Mean & When to Use Them

The real estate industry in the United States is growing with time. At present, the demand and prices of residential properties is increasing day by day. Now, the construction companies and builders are developing high-rising residential properties for buyers. But, they are struggling to get paid for their services and material supply by the property owners. Hence, the real estate authority in the United States has given the right to the construction contractors or subcontractors and material suppliers to file a lien against the owner to pay the due amount. Also, the material supplier and owner have to sign a lien waiver form or agreement. This form will allow the supplier to reserve the right to file a lie on the property they work at, if not get paid the full amount. Thus, it becomes easier for suppliers to lien on a house and reserves the right on it till get paid fullest.

What is Lien Waiver?

A lien waiver is a sort of document or an agreement signed between the counterparty and material supplier. The counterparty gives the right to the payer to wave off lien property rights in future when full payment will get done. The lien wavier party will release the document or lien form or exchange it from the owner for payment clearance. A lien waiver property form is a legal document that empowers the supplier to file a lien on a house to recover the unpaid amount from the owner. The lien waiver document will also include complete details of the due amount, date, and payment period as well.

There are two types of lien waivers such as conditional waiver and unconditional waiver.

1. Conditional Lien Wavier

This type of lien waiver agreement focuses on how much amount needs to pay by a particular date. The supplier may release the right to file a lien against the owner to pay due money by a specified date or time. For this, the wavier can sign an agreement that includes details of the amount to owe till a particular date or time. Once the full payment gets received by the contractor to date, the conditional lien will become effective. Thus, it shows that the contract has to release the right to file a lie and relieve the owner from the lien case.

Also Read: How Liens Work? Can Liens Impact Your Property?

2. Unconditional Lien Wavier

This sort of lien waiver form needs to sign by the supplier or contractor when the full payment gets done by the property owner. The contractor can sign this form with immediate effect after getting paid. The form will become effective as you sign and rules need to follow by both parties. You should sign an unconditional lien waiver form once you get complete proof of payment done like invoices or check clearance detail. Thus, it will give relief to the contractor to file an unconditional lien waiver form that ensures that there is no due remaining.

Thus, you have come across both types of lien waivers that support the supplier or contractor to get their dues recovered through legal steps. So, you need to be smart enough to file a lien waiver before signing a contract with the owner.

If you want to file a lien on a house in the United States, you should take complete information about lien filing from construction attorneys. For betterment, you can contact genuine real estate law firms in the United States. For instance, you may approach “National Lien & Bond”, which is a trusted lien enforcement company in the U.S. The company deals in all sorts of construction and legal affairs and lien filing services. For more details, you can visit the website mechanicslien.com

Original Source: https://bit.ly/3yDUtam

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Five Key Issues for Lawyers Handling Public Construction Disputes

Public construction disputes are often tricky cases and the lawyers handling the case are expected to pay keen attention to every minute detail and pursue patience throughout the case. It is also advised that the lawyer must usually look for a two-front dispute resolution process. Now, this resolution process covers the expansive regulatory framework which plays an essential part in easy resolution and understanding. 

A popular construction lawyer explains that the contractors who are actively engaged in public work should be aware of all the important aspects of the contract and the regulatory framework that comes along with it. One should be aware of the impact in case of a typical construction dispute. Let us further discuss the five important aspects and issues that a lawyer handling the public construction dispute face.

Issue 1: using inconsistent terms in contracts

There is a whole bunch of length specifications as part of the terms of a contract. A contractor and the lawyers are also expected to know the very important Christian doctrine. The public contractors are also expected to make sure that their contracts are updated, so they are reflected in WisDOT annual changes. This makes sure that there remains near to no difference between the general contract and the WisDOT agreement. If at any point in time there arises a conflict at a construction site then all the details already mentioned can be looked upon and verified. There are a bunch of other forms as well namely AIA, and AGC which will enhance the credibility of the terms and conditions already been agreed upon. They might in this case also include the mechanism for dispute resolution.

Issue 2: public owner practice and incentives

When a contractor is looking to pursue a dispute resolution, a very important of those aspect one must remember is that the government owners and the representatives are often moved and motivated by several types of incentives, unlike the private owner. When we particularly talk about private projects, time is everything. And though public servants might also claim that they are dedicated and destined towards their duties in the public interest, they still do not face the same kind of time-cost pressure that the private sector people have to go through. It is often said that out of the two, public representatives are more likely to explain the issues with negotiation and litigation and the possible delays around the same. s

Also Read: A Primer On Stop Notice And Payment Bond Claims

Issue 3: impact on insurance coverage triggers

If we talk about who has the leverage in forcing and insisting on work or rework, it will more likely be a government owner instead of a public owner. The majority of work that these contractors receive is mostly attained by the same government owners who hold the power the even suspend these same contractors. This is the reason the contractors are more concentrated and liable for the work they do. The contractor also needs to be very aware of insurance coverage policies as one carelessness and they might be forced into a compulsion to redo all the work without any cover.

Issue 4: design professional status

With government owners being involved in many different megaprojects, they continue working with the same contractor and the design professional. This creates a line of trust but also enhances the chances of imposing issues with super ease. In such a case, contractors are often considered more vulnerable to the design professional as the latter often remain a more trusted ally in eyes of a government professional. This inclination results in the blame game being forwarded toward the contractor. If the issue in a few cases is vast then the designer and the contractor might turn up against each other.

Issue 5: dispute resolution process differences and sovereign immunity

According to the specification provided by the WisDOT, if a contractor looks for a change in order, one might have to go through a pretty complex and tiring process. the initial process might include an oral notification about the same, Followed by a five-day contractor written notification and finally a five-day region response along to conclude finally a decision about it. 

We at Mechanics Lien have a team of one of the best construction lawyers who possess the relevant experience and ability to deal with these complex issues with super ease.

Original Source: https://bit.ly/3xHA43S

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Payment Bond Claim Notice Requires More than Mailing

There are a lot of requirements to make a payment bond claim notice other than mailing. One of those aspects is the 90 days notice requirement which has to be fulfilled by the second tier or subcontractor or the supplier who has no straight contractual relationship with the general contractor. There have been several cases of failing to provide the notice which is taken into consideration by the circuit court and is examined under the little miller act. We at mechanics lien deal with a lot of cases of payment bond notice and claims. Our team is always ready to advise you on the best steps after examining the situation and always hopes to resolve the matter at the earliest.

There is a very popular case that goes by the name of RT Atkinson building corp v archer western construction, LLC. The court while referring closely to this case looked upon the matter of whether it is right and legitimate to only mail the notice of claim instead of giving it in a manner that ends up satisfying the statutory requirement. This question of legitimacy has been doing rounds for quite a while. Now in the case, we are discussing, the notice was mailed by the supplier within the 90 days of time frame. But the one who was against the case argued that he only received the notice on the 2nd day after the 90 days were over. He also tried to make his argument a lot more legitimate and solid by providing a sort of proof. The defendant while confirming the contention went further to provide the tracking information of the mail by delivering the USPS on a non-compliant date.

Though the argument made by the plaintiff was rejected by the court stating that the method of service was mailing and placing the notice of mail is enough and serve the legitimate cause. The court further went on to state that-

Mentioning the mail as the method of service does not establish the fact that mail is satisfying the prerequisite to giving the notice. The court findings were summed up with clarity. The court went on to clearly state that the notice would only be considered given when it is finally been received by the claimant. It is not as If you send the mail and now it does not matter that it went through or not. It is as important to make sure that the claimant received the notice as to send the mail firsthand.

Also Read: How to File a Mechanics Lien: The Ultimate Step by Step Guide

The court then went further and on procedural grounds denied the summary judgment, which was found to be unrelated to the concrete facts of mailing and receipts.

Now as we move toward the conclusion of the case it is important to take note of a few important points from this case. One has to be pretty clear about the fact that just mailing the notice within 90 days won’t be enough on any ground and will not satisfy the requirements of the little miller act of Virginia. People have been doing this a lot when they assume that mailing is all they need to do and their part is over. If in any such case the claimant does not receive the notice then it will make the case critical. It is therefore important to keep these points in mind before you send the notice of your payment bond claim.

We at Mechanics Lien have one of the most experienced teams who is happy to help you in many of such law-related cases. If there is any such case of payment bond claim, we would be more than happy to help and advise you to deal with such cases.

Original Source: https://bit.ly/3MiUWm7

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Let Our Experienced Construction Lawyer Help You In Solving Construction Related Cases in Florida. Contact us at 847-432-6900 or mail us at info@mechanicslien.com You can also visit us online at mechanicslien.com

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What’s one way to get rid of a mechanic’s lien?

It hurts when you do not get paid for efforts or work. In case, you are a contractor or labor who does not get paid for the material supplied or labor work by the client. What should you do to get paid for the pending amount? Being a contractor or labor, you have the right to file for a mechanic’s lien against the owner to recover the amount. On the other end, the homeowner needs to focus on ways to get rid of a mechanic’s lien through the legal process.

Before you file a lien against the property owner, you should understand how mechanics lien works and their legal norms to follow. Being a contractor, you can use mechanics' lien power to recover unpaid amounts for the work done for the property. If you are unable to file a mechanics lien, you may take the aid of a professional lien attorney in the United States. There are many trusted law firms across the country, where you can find experienced property lie attorneys. You can hire an experienced lien attorney to handle your mechanic's lien case as per the mechanic's lien laws in the country.

If you want to get rid of a mechanic’s lien case, you also have to understand the standard rules and follow the legal steps below:

1. You are only responsible for repaying the pending amount to the contractor as soon as possible.

2. If a contractor has filed a case against you, you will get a limited time to repay the pending amount. Make sure the contractor gets paid till the mechanic’s lien period expires.

3. You should determine the lien validity and limit, a small debt amount, notice period, and mode of payment mentioned in the mechanic’s lien format.

4. In case, you are not satisfied with labor work or contractor service, you can claim this point to stop payment till the work gets completed.

5. In the last, you can get rid of the lien of a property case, if a contractor agrees with the same or you take a mutual decision with him.

6. You can also file a lawsuit against the contractor for not completing the property project on time or demanding higher payments.

Also Read: The 9 Elements Of A Valid Claim Of Lien

Thus above are some vital ways that you need to consider and follow to get rid of your mechanic’s lien case. The whole process to file a lien is time-consuming and there are many legal steps involved too. Hence, you need to take the aid of professional lien attorneys in the United States to follow up your mechanic’s lien case. Before you hire an attorney for a lien case, you should check its credentials, experience level, background, and other relevant proofs too. Do the best comparison of all the things to find a genuine and professional mechanic’s lien lawyer in the United States for your case.

For instance, you may contact the “National Lien & Bond”, which is one of the reputed law firms in the United States. At this firm, you will find experienced mechanics lien attorneys who can handle your case in a legal way. For more details, you can visit the website mechanicslien.com

Original Source: https://bit.ly/3NaJHx4

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The 9 Elements of a Valid Claim of Lien

The construction industry is pretty rigid in terms of timely payment of the workers. There are a lot of cases when a contractor or a subcontractor has to face the issue of non-payment by the clients. The same fate is experienced by suppliers most of the time because of the same irregularities. The frustration of not being rightly paid for your deserving work often makes these workers plan to go the legal way. They have the right to lien a property. They can take the help of a legal firm that will help them to file a mechanics lien against the property for which they haven’t been paid. We at mechanics lien have some of the best experts who will be glad to help you seek the right direction and effectively file a lien if you haven’t been paid. The presence of lien law has given much-required safety shied to the construction workers who don’t have to worry about being not paid for their hard work. Once the lien is filed against the property, the owner loses its sole right over it and now the non-paid construction worker recovers the amount either through sale or through other agreement with the owner regarding the property. There are a total of nine elements that are a very integral part of the lien and one must not forget about any of them while they start the process to file a lien.

1) Your name and address

Mentioning the business address is one of the most prior and essential things to write. It very much depends on the person claiming that whether he is in a partnership or is running a corporation. In either of the situation, one has to mention the address of the corporation or else it will be very difficult to file and record a lien.

2) The name and address of your attorney, if you have one

The recent changes in the lien law have allowed individuals to file a lien even if they do not maintain the office within the state where they were working. But what is important in such a case is to mention the name and address of the attorney who resides locally and is hired for the case.

3) The name of the person or entity that owns the property you intend to lien

The name of the person who owns the particular property against which you are planning to file a lien should be mentioned. It will be much more convenient if you mention the clear intentions of the owner which you have assumed since not being paid for the work.

Also Read: WHAT DOES A CONSTRUCTION LAWYER DO & WHEN DO I NEED ONE?

4) The name of the party who employed you or to whom you provided services or materials

So this obligation intends to know the information about the part with whom the contractor initially did the agreement for the work. Naming them on the papers would be very vital and will be considered necessary information.

5) The labor or material you provided and the agreed wage or price

You will have to mention how much material or labor have you provided to date and what were the wages or the price was agreed upon initially as per the agreement.

6) The amount that you were due to receive for the labor and material

This will mention the exact amount you were expecting to receive but since you are not paid yet you are filing a lien.

7) The dates when you first and last supplied labor or material for the construction project

Make sure to mention the exact date for the same.

8) Information about the property that you want to file a lien against

Describe the property you are intending to file a lien against. Make sure to convey precise information.

9) Your verification that all of the information provided in the claimed lien is true

A proper verification process is required to assure all the information provided is true. We at Mechanic Lien would be happy to help you in every step while you prepare to file a lien.

Original Source: https://bit.ly/3MVh5YM

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Contact the best contractor lawyer at different locations of United States. National Lien and Bond Claim Systems is the group of best construction lawyers in USA. Contact us for free consultation.

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How to Remove an Improper Mechanics’ Lien

The dispute between the property owner and the hired contractors is not new. Even the slightest of differences can escalate the problem between the two and can make the case look worse. Suppose the property owner feels that contractor has not done justice with the project assigned and there is still a lot of unfinished work or in some cases, the contractor has taken too much time to complete the project. In any such case, the owner might block the payment to the contractor. If the contractor feels he has been up to his commitments then he has the choice to simply retaliate with the mechanic’s lien on the property. But one has to take note that even a little mistake while filing this lien will result in expulsion. Court won’t take too long before expunging the mechanic’s lien altogether. An attorney might give you a fair bit of idea about the whole process and all the necessary things that one has to keep in mind while filing a mechanics lien.

Let us consider an example of a most recent change in the rule of lien. In July 2012 mechanic lien California went through a process of a complete revision. The change came us a revision for the contractors and the subcontractors who were expected to change the form with an updated version and consider a different procedure to enforce the mechanic lien.

Even after the change, the purpose of the mechanic lien remains the same and that is to prevent the owners from taking any advantage of their property without paying the cost. The mechanic lien is very essential for the contractor’s financial security point but then one has to understand all its procedural aspects and the correct way to file the lien. One mistake might hamper the whole cause.

Also Read: What Does A Construction Lawyer Do And When Do I Need One?

The first and foremost priority is to file the mechanic lien on time. Not filing it timely might result in the expulsion of the lien altogether. It is also important to note that the owner at first is expected to provide notice to the contractor to remove the lien voluntarily. The technicality of this notice requires a good consultation of the lawyer who could advise the homeowner about things to include in this important notice.

So once the notice is filed and even after 10 days the lien by the contractor is not removed then it is time for the petition to be filed for the court hearing. If the owner fulfills all the requirements of the civil code and the lien is termed defective then it will be pretty clear and the court would order the removal of the lien while the owner would be required to pay the cost as well as the added attorney fees.

If the procedure is not conducted properly then the owner might end up paying the attorney fees and the lien would remain active on the property. So it is important that this procedure is done under the guidance of an expert and there is nothing left unnoticed that hampers the whole process.

We at mechanics lien have got great experiences in dealing with the mechanic lien. So if there is any case of a lien on a house and you need some assistance with it. Our team is all set to help you and make sure that you get the desired result.

Original Source: https://bit.ly/34Fuwuj

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What are liens and how can they impact your property?

Lien in simple words could be defined as a legal measure where a creditor holds the right to claim the rights over a property if the loan remains unpaid after the stipulated time. The property, therefore, acts as a security interest for the creditor. The lien will therefore act as an ultimate security guarantee for the debt recovery if the creditor is unable to secure payment from the borrower. It will also allow the lender to seize the property or force the sale to secure the payments and satisfy the debt.

Lien on a house can be a factor to many problems while you try buying or selling the property. Even if you are the homeowner you have to understand how a lien will impact the proceedings of the property and what are the several ways to deal with it or remove the lien altogether.

What is a lien and how does it work?

Lien is a legal right granted to the creditor or lender which helps to secure their financial interests. The lender has the right to put a lien on a property and this lien will automatically be lifted once the debt is paid. But in a condition when the homeowner Is unable to pay the debt, the creditor will have the right to recover the debt with the sale or seizure of the property. This means that the homeowner does not have the full stake on the property until the lien laws remain active and instead the lender shares the stake in the property.  A construction lawyer explains how there happen to be several title search companies who actively help people who are closing down on a property and uncover issues such as a lien on that property which could affect the rights of the buyer to sell the property. If in any situation the title company unfolds the lien clause on a property then the buyer and the seller will have to figure out how the lien issue will be resolved before the sale of the property happens.

Also Read: What Does A Construction Lawyer Do And When Do I Need One?

Types of liens: voluntary and involuntary

Lien is of different kinds which are slightly different with their terms and clauses and put a different type of restrictions on the borrower and different power for the lender altogether.  The lien could be split into two broad categories- one is voluntary and the other is an involuntary lien. There is often a lien that you opt for as an agreement between you and the bank from where you have borrowed to purchase a property. Also, a creditor could voluntarily opt to put a lien on your property if you own him a balance and he needs a sense of security let us further discuss a few common types of lien

Tax lien

A tax lien is a condition when you fail to pay property tax or income tax and even after being notified in writing by the government agency you fail to pay the amount. This is when the government could take an action against you and put a lien on a house you own in the effort to recover the debt.

General judgment lien

This is a very basic type of lien where a creditor when unable to secure the payment takes the lender to the court and wins the case. So the judge might allow him to secure the payment through the forced sale of the property.

Mechanic lien

This type of lien is put by a contractor when he is unable to secure the payment for the construction or renovation work he has done.

How to get rid of a lien

The most secure way is to repay the balance as soon as possible and get rid of the lien on a house you own. If unable to repay the lien one can try to formulate the terms of the lien through proper law procedure.

Want To Consult The Best Mechanics Lien Lawyer? NLB is here to help you. We have an extensive team of more than 150 law firms to take care of your business requirements in U.S., Canada and Latin America. To get more info, visit us online at www.mechanicslien.com

Original Source: https://bit.ly/3Bbospb

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Lien on an asset would act as ultimate security which would allow the lender to be calm until the debt is not paid. We at National Lien And Bond Claim Systems can help in making one understand the scenarios of lien public funds.Read This Article To Know More.

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How to File a Mechanics Lien: The Ultimate Step by Step Guide

How Liens Work in Construction

Each state has its lien laws for the construction industry, which gives the contractor and supplier the leverage to file a lien on the property if the lien remains unpaid. It remains a vital tool for the contractors if they remain unpaid for their work done at the property. The best part about lien is that it is very easy to file. Once the lien is filed, the person asking for the claim has around 2 months to 2 years for initiating the negotiation with the owner. The mechanics lien should be considered as a process rather than assuming it is a single document. This is considered because the contractor is expected to send the initial notices at first in regards to its payment before filing a lien. If in any case the contractor misses a step or misses the deadline of filing a step, he might end up losing his right to file a lien altogether.

Also read for Your Guide to the Miller Act Vs. The Little Miller Act

Even the slightest of mistakes can land the claimant in trouble and evade his chances of filing the lien process. But despite all the challenges that come with it, filing a mechanic lien probably remains one of the strongest and powerful tools that one can pursue in the construction industry.

The Five Steps to File a Mechanics Lien

Ensure you have right to file a lien?

It is very important to have the idea that if you are eligible to file a lien. Each state has its own set of rules to determine the rights of a person who is filing a mechanic lien and the eligibility process involved. The person filing the lien has to follow the rules of the state or he might lose the lien right at any point in time.

Draft the lien

The following step involves producing all the legit documents. One is expected to draft the lien form that has to file and would be known as the lien claim. One is expected to be very careful while filing drafting the claim process.

File your lien with the county clerk or recorder

Once you have determined both the above steps it’s time to file your lien which could be done with just 5 dollars in the pocket to spending thousands on it. The lien could be mailed or filed in person or could also be filed through several electronic mediums. One can also hire a filing service through a law firm and can make the filing a lot easier.

Notify parties

Once you are done filing a lien, one is expected to send a copy of it or inform with a notice to all the people involved. It gets important to let everyone know about the ongoing process and its consequences from it.

Enforce, extend, or release your lien

If 4 of the above steps are complete, it’s time to congratulate yourself because you have almost completed your steps the right way. Now once you are done it’s important to release your lien within time. Each state has its time regulation within which one has to react and get the job done.

We at the National Lien and Bond Claim System will be happy to help you file a lien in Florida. Our team has significant experience in dealing with the mechanic’s lien and we would be happy to assist you at every step.

Also read for

A Primer on Stop Notice and Payment Bond Claim

What Are Liens and How Can They Impact Your Property?

REFERENCE URL: https://bit.ly/3z0DwVS

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Your Guide to The Miller Act Vs. The Little Miller Act

If you are somehow related to construction and you have a specialization in dealing with government contracts then you must have probably heard about the miller act. We will discuss the miller act vs. the little miller act, both versions which can make an impact on your work.

Also, read for The Building Blocks of Modular Construction: Contractual & Lien Considerations

What is the Miller Act?

The miller act is a protector of construction parties from the first and second-tier who are looking to recover the outstanding debts. In the miller act, the commanding contractor will have to obtain the two surety bonds; one of them is a payment bond and the other is the performance bond. Under the performance bond, the satisfactory completion of the project is agreed on a duly sign contract. Now under the payment bond, all the suppliers and sub contractors are assured of their due payment. This miller act was passed in the year 1935. States over the years though started to bring upon the changes. All those state-wise changes were known as the little miller acts.

The Miller Act vs. the Little Miller Act Under the miller act, contractors are expected to secure payment bonds for contracts that are more than $100,000. For other protection of payments, a contract between $30k to $100k is provided. If the payment is not made to suppliers or sub contractors, they can straightaway sue the contractor in district US court. Under the little miller act, there are different statutes under different states. They all have their own set of rules and guidelines. So it comes down to the fact that if the construction project is being implemented under the federal government, the miller guidelines are followed and if the project is state-sponsored, the little miller act is put in place. Little Miller Act Differences among States It is very clear that the little miller act will vary from state to state and one is advised to study the specific guidelines laid by the state under the act before the project is commenced. Also, one should make sure that the entire legal obligations under the act are rightfully met. Things to look upon are-

Contract amount requirement

The amount of payment bond that has to be secured by the contractor under the federal miller act can be different in each state. For example, that bond payment in Missouri can be around $25000 and in states like Tennessee, the amount could exceed almost $100,000.

Bond claim filing/notice requirements

The deadline to file a bond claim is another variation that differs with each state.  Let us consider an example of it. in Illinois, one is expected to file bond claims within the period of 180 days when the last work or furnishing is completed. But in contrast, the claimant in Florida will not have to file any notice in this regard. In Louisiana, the deadline for filing is of 45 days.

Bond claim statute of limitation

This means the deadline to file the lawsuit for the bond claim. Each state has its time frame within which one is expected to file the bond claim. The little miller act will have all the details concerning each state. How to File Little Miller Act Bond Claims One should have a clear understanding of the eligibility to file the bond claim. Few states allow only the construction parties of a first and second tier to file the claim. Hiring an attorney will be much more advisable as he will have all the experience to share in construction disputes. We at the National Lien and Bond Claim System will be happy to help you in such cases. We also have a great team to deal with cases related to a lien in Texas and Florida. We would be glad to help you in every way. Also, read for

Questions about the Impact of Sloan v. Liberty Mutual

What Are Liens and How Can They Impact Your Property?

Reference Url https://bit.ly/3lZQsFV

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Lien Public Funds in Illinois

We at the national lien and bond claim system will be happy to help in any case of lien public funds in Florida. We have a team of experts who are working for the same cause for a lot of years, so we understand your concerns pretty quickly and come up with solutions that are good for all. Visit us for any help.

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What Are Liens and How Can They Impact Your Property?

Suppose if you recently shifted to your new property but understand that the property still doesn’t entirely belong to you. This is exactly what a lien claim does. It could be defined as rightful security that a creditor holds against a property. In simple words if a borrower who has taken money from an entity (such as a bank) and kept his property as collateral fails to make the payment, a lien on a house will come into play, according to the lien, the lender will have the full rights to seize the property and put it for sale to recover the debts.

Also read for The Building Blocks Of Modular Construction: Contractual and Lien Considerations

Liens are pretty common, the lien laws can sometimes create a lot of issues while selling or buying a property. It is always advised that a homeowner should closely understand how the lien will work on purchase or sale and what all impact will it bring over your property claims. One should also closely understand that how a lien can be removed.

What is a lien and how does it work?

Putting a lien on a property is a security claim put forward by the lenders to make sure that their financial interests are secured. As soon as the debts on the property are fully paid the lien is lifted. You are under several obligations until the lien on a property is active. Being an owner you are still restricted and can’t do much with your property until the debt is not fully paid and the lien remains active. So suppose if you have a plan to sell the property, you technically can’t do that because the lender has got a legal stake in the property under the lien agreement.

All these reasons justify why a title company has to perform several searches to know the seller’s right over the property and if there Is any pending lien issue that has to be resolved. According to data released by the American land title association, more than 25 percent of these searches reveal the pending lien issues. Therefore it is always recommended to take help from a title company to understand the property status before closing down on it.

Paying off the debt remains one of the easiest ways to ward off the lien and then one can file the documents in accordance in the county’s recorder office. There are also times when a lien is shown on a property as an error and therefore the seller and the buyer must resolve this issue before coming upon the sale agreements.

Types of liens: voluntary and involuntary

There are a few types of liens that have different impacts and repercussions on your financial well being and the property. They can mainly be divided into 2 categories which are namely recognized as voluntary lien and involuntary lien. Often, you have a choice to choose your lien. One such example could be a voluntary lien in form of a mortgage. This happens when you have agreed to a financing agreement with a lender (say a bank) or any other institution under a lien and now you can finally purchase a house. It is until the debt is not fully repaid the lien remains active and the creditor has all the right to take over the property if the debt is not fully recovered.

In another scenario, the creditor has the right to put a lien on a house without even your approval. This could happen when you have borrowed from a financing institution and when you are unable to pay, the institution could reach the state agency or a county and can place lien filing to initiate the process of recovering debts. Let’s discuss a few common types of liens.

Tax lien

This kind of lien on your property is generally initiated by the government in specific cases. Suppose if are not in a position to pay your property tax or income tax or the pending business tax, then a government agency has got the full rights to take action against you. The first warning would be served in form of a written notice and even after that you are not able to take the necessary action towards paying the taxes, the government would be bound to put a lien on your assets.

General judgment lien

This is the case when a lender takes the matter of debt to the court and the judgment of the case comes in his favor. During the judgment, the creditor might be given the right to place a lien and ensure that the remaining payment could be recovered through assets. After the decision the creditor will have the full rights to claim on your property, it will be followed by a complete seizure and sale of the property if you are not able to come up with a satisfactory plan of paying the debt.

Mechanics lien

This kind of lien is also known as the construction lien. This is generally placed by a contractor who has to be paid for construction or renovation work he has done and is still to be paid. It is up to the state laws to recognize when the lien expires. There are also times when contractors forget the removal of lien and which in turn complicates the property sale when being investigated under the title search.

Difference between a good lien and a bad lien

There is a very fine line between a good lien and a bad lien. If there is a proper financial agreement between the two parties over the sum lent over property and a lender subsequently places a lien on a property, then it should be taken a mutually accepted lien which is providing a sense of security to the lender and is wrong to take it negatively. The idea is to make sure that the rights of the lender are protected and there would probably be no issue with any party involved until the borrower is making the regular payments and debt is being recovered smoothly and within the mentioned timeframe.

In contrast, the involuntary lien is a different case. It is enforced by the lender when the borrower is not making the payments and because of the escalating tension due to non recovery of the debt, the lender decides to take a legal road to file a lien and seize the property to recover debts or to find a lawful solution for the debts to be recovered according to a proper plan.

Lien can sometimes put a very negative impact on your creditworthiness because liens can easily be found in public records. The past non payments of debt would never go down well with the lender and he might end up denying you a loan.

One should understand it as a matter of fact that lien affects the title and make it difficult for you to sell or finance your property. Tax liens are sometimes put on sale by the municipal organizations in form of auctions to recover the money. If someone ends up buying the tax lien, he may have the right to foreclose the property and set you free.

How to get rid of a lien

If you are wondering that what the easiest way to remove a lien remains, it will of course be to pay off the debt you owe to the lenders. Foreclosing a property remains a long and tedious way, so the lenders usually wish to avoid it and in case prefer to chart out a solution for the payment plan.

Many people might wonder but it is also theoretically possible to sell your property without settling the existing debts. If a seller can convince that the total cost of resolving the lien is adjusted in the selling cost of the property, then it could give the seller a much-needed escape. The owner therefore can pay off the debt through the amount received on the sale of property and the new owners also won’t have to worry about any issue related to a lien on a property.

It is to be understood that if the buyer ends up buying a property with a clouded title, and which has an existing lien case, it will now be the responsibility of the new owner to deal with the case and the seller will be free of any case.

There are also times when the buyer could not figure out that there is an existing lien case on the property; in that case, he could reach out to the title insurance company. It Is the responsibility of the title companies to search to find out the defects and update it to the buyer accordingly. So in such a case, one can easily claim full ownership without any hassle of the lien on the new owner's head. It will be the responsibility of the title insurance company to fight out the case and resolve the lien issue on that property.

Liens do not always bring bad news, but it is our responsibility to understand the term in-depth and be aware of our rights. We at the national lien and bond claim system will be happy to help in any case of lien in Florida. We have a team of experts who are working for the same cause for a lot of years, so we understand your concerns pretty quickly and come up with solutions that are good for all.

Also read for Questions about the Impact of Sloan v. Liberty Mutual

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Questions about the Impact of Sloan v. Liberty Mutual

It’s not long ago when a very interesting decision was handed on enforcement of pay if paid provision by appeals of the third circuit court in Pennsylvania. It was between liberty mutual insurance company v Sloan and company. It was found that liberty mutual insurance Company does not need to pay the payment bond claim to the Sloan, a subcontractor. It was because there was a pay if paid provision in the subcontract which was finalized between the Sloan and shoemaker, the contractor who secured the bond. After an intense hearing proceeded between the contractor lawyers, the court concluded with a decision that shoemaker does not have to pay Sloan in full payment because they were also not paid in full by the owners of the project. This was also because the shoemaker was not liable to get fully paid under the contract, so the court claimed that surety on the bond claim could not be liable.

A lot of things are pretty much clear about the pay if paid provision and other liquidating agreements after the Sloan case. But the changing lien laws in the region definitely question the lasting impact such a case and its conclusion could bring along.

Regions public policy in favor of subcontractor’s right to secure payment

As far as the Sloan case is concerned, the agreement contract between the two parties, the Sloan and the shoemaker claimed that the right to file a mechanic lien is waived by the Sloan. The Sloan on the contrary did put up an argument against it; they claimed that on the Sloan bond claim if there was any surety to rely on as stated about the pay if paid provision in the contract, now this would be very much different from the policy of the region of right to secure payment, favoring the subcontractors.

There was an amendment in the lien law spelling out this policy. There is a section 1401(b) in the lien law which makes it invalid to forward lien waivers and unenforceable, but only valid when they are provided in place of the payment after subcontractors have completed their work. It could also be valid in the case when the guaranteed payment bond is issued by the contractor for the labor and also for the material.  This provision serves a very important purpose of providing an alternate avenue to the subcontractors in order to recover the payment in place of waiver for lien rights.  A subcontractor if once receives the security bond protection is more than willing to give up the liens protection. In the case of Sloan, the pay if paid provision takes away the protection. Though what’s important in the whole case stands with the fact that the lien law did not stand effective when Sloan made an entry in the subcontract.

Also Read: The Building Blocks Of Modular Construction: Contractual And Lien Considerations

Surety’s ability to rely on pay-if-paid provision may be contrary to public policy

There was a footnote released by the court stating that the ruling which was given in favor of surety did not deny any of the public policy as it was very clear that the Sloan have entered the contract way long before the important lien law was enforced and came in affect. The Sloan never relied on this policy and was quick to accept what was arguably a tradeoff between a surety bond and mechanic’s lien.

But two very important questions were put forward in the footnote

The first one stated that if the court would have come on to a similar decision and given the same ruling if the lien law was enacted and the Sloan would have entered the contract after it.

What will the courts do now, if they will allow the surety to have relied on pay if paid provision in their contract which has been agreed upon after the lien law amendment where the contractors were expected to waive the lien rights.

The court didn’t end up clearing their opinion on the questions above. But there is definitely a space to have a good argument after the lien law amendment of 2007 was made.  Wouldn’t it go against the public policy if sureties are allowed to have relied on pay if paid provision and act as a solid defense against the bond claim of the subcontractors?

What’s next?

The decision on Sloan has done almost nothing in order to prevent the subcontractors, who ended up waiving their lien rights after the lien law amendment, to argue that surety reliance on pay if paid provision has been against the public policy. The subcontractors have a valid reason to make an argument that the amendment of the lien law was to ensure that all those contractors who were expected to waive their lien rights will get the protection in the payment bond. When the surety has relied on the pay if paid provision in order to deny payment for the bond claims, has kept the purpose on surety bond at a very fine line. And thus has denied the very purpose of the lien law amendment.

The contractor lawyers argue that after the Sloan decision the sureties will rely on them and other in line principles from the surety law which states that the liability of surety will only be triggered after the maturity of the principal debt. There also stands an argument for the sureties that the bonds are being provided in order to benefit and protect the obligee which is usually the owner and not the contractor. Therefore the reliance stated by the subcontractors on the bonds is misplaced.

The decision on the Sloan has been important without any doubt as the dealing of the inline cases is concerned but is also much clear that the impact it will have will certainly be limited and subject to arguments and changes. A lot of tough questions likely remain unanswered. It will be upon other courts to answer these vital questions and make a much clear understanding of this vital topic.

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