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Contractor filed lien before debt was due.

Contract with builder stated balance (after initial deposit) was due at the end of all contracted work. Also damages were done to home and an addendum contract was done stating builder would address all damages before contract would be considered complete. Builder has completed about 95% of work and addressed zero damages but has filed a lien stating they must be paid first and are refusing to finish to address damages. This feels like extortion. Can their lien be considered valid?

1 reply

Mar 12, 2020

Mechanics liens should generally be filed after the debt at hand has become due and payable. But, any time work has been performed but not paid for, it's possible that a claimant could file their lien, and it's possible that the lien could be valid even if the project hasn't been completed. This would seem particularly true where there's a dispute regarding payment. What's more, keep in mind that mechanics lien claimants can generally proceed with their claims even when there's a dispute over what's owed, and even when there's a dispute over the quality of work provided. To your question: Yes, it's possible that their mechanics lien claim might be considered valid - ultimately, it's impossible to predict how a court might end up deciding on the matter. Still, at the very least, it's bad form to file a mechanics lien before the debt was supposed to be paid. It wouldn't be surprising to hear that an owner successfully challenged a mechanics lien claim because their contractor filed it prematurely, either. Unfortunately, it doesn't seem like this is a particular cut and dry issue. For a little insight on how to respond to a mechanics lien filing: A Mechanics Lien Was Filed on My Property – What Do I Do Now? Finally, keep in mind that a North Carolina construction attorney might have a little more expertise dealing with an issue like this. So, they may be able to provide additional insight or may have a differing opinion on the matter.

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