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Lien on a sold property

We have a job where we are replacing a broken window. The damage was discovered during an inspection for the closing for the sale of the house. If the current owner (our customer) defaults on payment after the house is sold what options for lien would we have if nothing was in place before the completion of the sale?

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Sep 20, 2019

The West Virginia mechanics lien statute doesn't specifically provide for a situation where property is sold within the timeframe for a claimant to file a mechanics lien for work on that property. So, the statute doesn't specifically allow or disallow a mechanics lien on a buyer for work done for the seller. Generally, if mechanics lien rights arise in property prior to a sale, but the property is then sold, mechanics lien rights will typically be unaffected. More on that here: What Happens If I Filed My Mechanics Lien After the Property Was Sold? Granted, all of the same requirements for a West Virginia lien will apply. So, a lien would still need to be filed within 100 days of last delivery or completion of the contract for work. Note, though, that mechanics lien rights are at their most powerful when a sale is imminent. No buyer wants to purchase property that might be subject to a valid lien, and no lender or title company will want to be a part of that either. So, leveraging the potential right to lien right before a sale will often be one of the most effective uses of lien rights. Even in a situation where payment isn't expected until after the closing of a house, a seller will want to make sure their buyer isn't scared off by a potential lien. So, a contractor might be able to leverage their potential right to a future lien into the seller guaranteeing payment with something like a promissory note, personal guarantee, or a confession of judgment. That way, their buyer won't have to fear a future lien if the owner doesn't make payment. And, for a seller, they'd still be promising to pay the same amount for the work - just in a more official manner. For more on securing payment without actually persuing a mechanics lien: Don’t Want to File a Mechanics Lien? Here Are 5 Other Options. For more on West Virginia mechanics lien rights: West Virginia Mechanics Lien Guide and FAQs

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