General Contractor Not Paid by Tenant
ColoradoGeneral contractor performed electrical work on a commercial space for a commercial tenant but with the owner's implied consent. Tenant has not paid for completed project. Original owner of commercial space was contacted and notified by contractor of tenant's nonpayment, and told a lien would be filed. Within a week or two of that conversation, the owner sold the commercial real estate. The tenant for whom the work was done still leases that space from the new commercial property owner. A lien needs to be filed, but can the original owner (who happens to be a commercial real estate agent and knows the laws) be named and held liable for payment in any possible way? And is the new owner liable to the contractor now?
2 replies
Liens attach to the improved property, irrespective of ownership. A transfer with knowledge of an impending lien can present its own problems and claims between the new owner and the previous owner, but they aren't the contractor's problem. Lien recourse is against the property. Contract recourse is against whoever signed the contract. Lease recourse is between the parties to the lease. Feel free to call to discuss further. 7205007855.
purposes only. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter. No reader, user, See More...
If the former owner did not have any contractual agreement written or otherwise with the contractor, it likely would no longer have any obligation to pay for the work done by the contractor. The new owner would have an obligation to pay the contractor if the contractor timely perfected its mechanic’s lien rights or potentially for an unjust enrichment claim.