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Lien against house for sale?

We did work for a 'flipper' and had to pull off the job due to none payment. They put the house on the market and are trying to sell it. Should we put a lien on it before they sell? The work isn't even finished and the inspector had called out a couple (pre-existing) things before our permits can be approved.

1 reply

Dec 4, 2018

That's a fair question. First, it's worth noting that there may be some notice requirements associated with the project, and if unfulfilled, these requirements can be fatal to a potential lien claim. You can learn more about those (and other lien and notice requirements) here: Oregon Lien & Notice FAQs. That being said, where a valid right to lien exists, filing a mechanics lien can be extremely effective, especially when the property owners are looking to sell. When a mechanics lien is filed, it becomes much harder to sell or to take a loan against the property without first resolving the lien issue. Because a mechanics lien is so effective, the mere threat of lien can also work to compel payment. Many potential claimants utilize a Notice of Intent to Lien in order to try and compel payment without actually having to file a mechanics lien, and because a lien claim can have such drastic effects, owners will often be amenable. You can learn more about that option here: What is a Notice of Intent to Lien? Of course, it's still important to keep an eye on the lien deadline - an Oregon mechanics lien must be filed within 75 days of the claimant's last furnishing or the completion of construction - whichever comes first. Keep in mind that Oregon claimants must be wary of filing their lien too early, too. An Oregon claimant must wait until after either their last furnishing date or the completion of the project in order to file their lien - whichever date comes earlier.

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