I am writing to ask what to do if someone threatens to place a lien on you property even though you paid them in full as agreed in original contracts. Four years ago we hired an architect, who then became a general contractor to build a house for our residency. During this time we signed several contracts – for new sewer and gas lines, for architectural plans, etc, and also a separate contract for demolition of the old house and construction of the new "shell". Two days ago, our GC sent a letter to township that he "would like to close the Building Permit and remove insurance coverage” for our property. He did not finish house exterior (anyone can see that so it is undeniable) and was fully paid for all contracts - labor, materials and management fee. He admits that he did not finish the "shell" contract, and that he was paid 100 % on this and ALL previous contracts, and he previously had no complains. However, he now claims that we owe him for some past and recent jobs that he did in addition to those described in the contracts, and he refuses to return money for unfinished shell work (almost 90k). At the same time, he threatens to place a mechanics lien on our property to pressure us to agree to his demands. We think his new claims are bogus and he made them up to avoid returning our money in full, he wants to return only 50%. First question, if there were multiple contracts, can GC place mechanics lien on our property for the expired contracts or a combination of contracts – past and recent? Second question, should we basically pay him not to place the lien?? I read that the lien can be placed up to 6 month after completion of the project, and I am concerned that even if we agree to his demand now he can still place the lien in the future and keep making up new claims. This entire website teaches people how to place liens on bad owners, but what should the owners do if a crook threatens to place the lien on their property? Please advise.
You should have the opportunity to contest any asserted lien cliaim which a contractor attempts to record against your property. Do not sleep on your rights if you recieve notice that a claim has been recorded, Depenidng on how sophisticated the claimant's lien is, you may need an appropriately qualified construction attroney to represent you. Remember if/when you are defending yourself, it is not about whether you like the work. Keep the focus on the municipal approval. The permits are open, because the contractor has not yet completed the project.