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Can a contractor lien our property if we were not the owner at the time the work was completed?

South CarolinaLien DeadlinesMechanics LienRight to Lien

We had a contract for a new home build in South Carolina with a home builder. We did NOT own the property at the time of construction. Our daughter and son in law owned the property. The building permit and c/o was issued under her name. We didn’t close prior to construction as we waited for a mortgage release on what they were selling to us. The contractor completed the work in October 2019 and we closed on the property in December 2019. The home builder was paid in full and we moved in in December 2019. We received papers via certified mail January 2020.

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Jan 21, 2020
Generally, mechanics lien rights will run with the property - not with any individual or business. So, where a claimant has the right to claim a lien against the property, often, they'll also be able to file that lien if the property is sold prior to the lien filing. Levelset discusses that idea here: What Happens If I Filed My Mechanics Lien After the Property Was Sold? With that being said, there are some other factors that can affect the validity of a potential lien claim that should be considered. Further, here's a resource that's helpful for owners facing a mechanics lien against their property: A Mechanics Lien Was Filed on My Property – What Do I Do Now?

South Carolina liens and Notice of Furnishing

First, note that South Carolina is generally considered an "Unpaid Balance" state. Meaning, if the GC has been paid in full on a South Carolina construction project, then their subs and suppliers typically won't be able to file a valid and enforceable mechanics lien. Now, those subs and suppliers can actually preserve lien rights by sending what's called a Notice of Furnishing Labor or Materials to the owner and the GC. But, if that notice wasn't sent to the owner of the property prior to the GC being paid in full, then the sub or supplier will generally not be able to file a valid and enforceable lien claim.

Deadline to file a South Carolina mechanics lien

Further, note that mechanics liens have strict deadlines. South Carolina mechanics liens must be filed within 90 days of last furnishing labor or materials to the project. And, liens filed more than 90 days after the project's last furnishing date will generally end up invalid and unenforceable. More on that deadline requirement here: When is the deadline to file a South Carolina Mechanics Lien?
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