We are getting ready to file lien(s) but this is a strange situation. I was first hired and contracted as a project manager to manage a commercial and residential renovation to then sell. I hired and contracted a contractor to do most of the work (construction, electrical, tile etc). In addition to my project manager role, I also did some of the painting and landscaping to reduce cost. All of my credit cards were used to fund the materials and myself and my contractor's contract stated we would be paid at the sale of the property. Midway through the reno, I was added to the property as a co-owner. Toward the end of the project/renovation, the investor and the original owner had a disagreement regarding the note (I was not on or added to just the title). The investor ended up taking the property and has said and threatened that he will NOT pay anyone or reimburse anyone for our labor, time, job or contract(s). My first question is, because I was a contractor first with a contract but then became a co-owner, can I file a lien. When I was added as a co-owner my contract with the original owner stayed in place and I continued to provide labor. Nothing changed there. My contractor is filing a lien against the investor/new owner and I was told along with him, I can file my own separately too.....is this true? My second question is, if I can file a lien, would we both be considered GC's? Or is he the GC and I'm a sub? Or visa versa? This is a very complicated situation regarding ownership and contractors and just trying to get paid what I put in and are owned per contracts. Thanks in advance for your help. Beth McClave 719-582-3402
This is loaded with extraneous issues that need to be discussed. But, the short answer is if you provide labor or materials for the improvement of real property, you have the right to lien that property in the event of nonpayment. If you're an owner, you can voluntarily encumber your interest in a property (for instance, a mortgage or similar security interest), so long as there isn't some kind of agreement among any co-owners that you won't, and so long as you're not filing spurious documents simply to jam up the works.
I have no idea what you mean regarding the disagreement with investors/owners and the investor's ability to simply take the property. That needs to be explored in greater detail. I imagine a review of the relevant documents would be required to get a handle on all of the potential issues here. Feel free to call my office to discuss. 7205007855.
Thank you very much for your reply. This help. I'm still weighing my options so I will give you a call if need to pursue and have legal counsel.
Beth McClave