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Can I file a lien

Ohio

The customer ordered the product, withdrew their loan and sold their home now will not answer us. We are stuck with the product and no payment

3 replies

Jul 14, 2021

Good afternoon, 

You could potentially file a mechanic's lien related to materials, even if the materials have not been incorporated into the project. If the materials were furnished with the intent that they be used in the course of the improvement, or if they were pecifically fabricated for incorporation in the improvements and are not readily resalable in the ordinary course of the fabricator's
business. 

If either of those situations apply, then you may file a mechanic's lien against the property. Since it is a residential property, the same 60 day time period applies, so you have 60 days from the last date of work, or from the last date of supplying materials, to file a lien. 

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Jul 14, 2021
The work has not been completed. I need to know if I file a lien on the property will it affect the new homeowners who closed on the home Friday or will it go to the previous homeowner. The old homeowner is who it needs to go towards since they are in breach of contract and left us with over $15,000 in product.
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Jul 14, 2021

If you file a lien, it will go against the new homeowners (a mechanic's lien affects the property itself). However, those homeowners have title insurance for this reason. Once the new homeowners are put on notice of the mechanic's lien, they will likely submit a claim to the title insurance company, the insurance company will then likely reach out to the previous homeowners. It may take some time, but the lien will get into the right hands eventually. 

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