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How do I respond to a lien filed by a contractor

Hi, I've just received notice that a contractor worked with and paid in full on 11/07/19 had hired subcontractors to complete the job. They've new set me 'notice of liens'. The original contractor has gone out of business and disappeared. What do I do next?

1 reply

Jan 21, 2020

First, it's worth mentioning that Washington is generally considered a "Full Price Lien" state. That means subcontractors, suppliers, etc. are able to file a fully enforceable mechanics lien even if the property owner fully paid the project's GC. So, if a Washington GC doesn't properly release funds on a job, there's a chance the property owner will end up paying for work twice. As for how to respond to a particular lien claim - every situation is different, and there are a variety of potential responses to a lien claim. Levelset discusses that in good detail here: A Mechanics Lien Was Filed on My Property – What Do I Do Now? First, it might be a good idea to contact the claimant and try to resolve the matter amicably. If there are flaws with the lien claim - like a failure to send required notices, filing after the deadline, or exaggerated lien amounts - it might make sense to fight the claim and push for the claimant to remove it. Or, challenging the mechanics lien with legal action could be appropriate. Another option may be to bond off the filed mechanics lien - which will remove the property title from the equation (but not make the claim disappear entirely). And finally, some owners prefer to just wait things out. Ultimately, though, to understand how best to respond to a particular mechanics lien filed against your property - consulting with a local construction or real estate lawyer would provide a lot of clarity.

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