Hello, I am a small contractor in NYC I file a mechanic lien on a owner property (hire by the owner), the owner take out a lien bond and sold the property.
Question: How do I get paid now, since the property has been sold?
1 reply
Feb 3, 2020
When a mechanics lien is bonded off, that doesn't mean the lien will just disappear. Granted, many owners will act like it does. Instead, that just changes the method of the enforcement of that lien claim. Levelset discusses that in detial in these two articles: (1) Don’t Be Afraid Of Threats To Bond Off Your Mechanics Lien: Explaining Mechanics Lien Bonds; and (2) Primer on Mechanics Lien Bonds and Bonding Off a Mechanics Lien.
An ordinary mechanics lien claim might need to be enforced via lawsuit if the parties can't come to a resolution on the payment dispute. When a lien is bonded off, that simply means the lien enforcement suit will come against the bond rather than against the project property. So, just like when a mechanics lien is in place, a claimant who's filed a lien then had that lien bonded off will be able to negotiate payment with the property owner. And, if that owner isn't willing to do the right thing and pay what's owed, then the claimant can pursue a lawsuit against the bond to recover payment.
To assess the viability of a potential enforcement suit, or simply to negotiate payment before things come to that, it might be wise to consult with a local construction attorney - like one of these New York Construction Payment Experts. They'll be able to review your situation as well as the relevant documentation and advise on how best to move forward. And, of course, they'll be able to advise on other recovery options, like a breach of contract claim, prompt payment claim, or some other legal remedy.