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Can I file a lien on a property even if the PO has proof that they have paid the GC?

I am a material supplier hired by a General Contractor. I recently filed a lien on a property. The property owner came back and provided evidence that they had paid the GC and demanded that I remove the lien. At the discretion of my lawyer, I removed the lien from the property. What action could I have taken if the GC is holding back the check?

1 reply

Mar 17, 2020

Whether a property owner is protected from double payment or can be forced to pay twice for the work performed is set forth by whether a state is a "full-price" lien state or an "unpaid balance" lien state. Iowa, is a "full price" lien state, provided that the subcontractor posted his/her preliminary notice to the mechanics lien and notice registry before the balance due is paid by the owner to the GC. Specifically, Iowa statutes state that other than when preliminary notice is not timely provided, "payment to the general contractor or owner-builder of any part or all of the contract price of the building or improvement . . . does not relieve the owner from liability to the subcontractor for the full value of any material furnished or labor performed. . ." Other than the enforcement of a mechanics lien, if the lien was removed, recovery could potentially be obtained through a lawsuit, or through outside collections efforts.

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