While selling my house, my buyers verbally agreed to pay the roofers. Now they wont pay them. Can the roofers come after me or just put a lien on that house?
1 reply
Nov 18, 2019
First, it's worth noting that verbal assurances - when there are more extensive written agreements in play - will generally not be binding. While verbal contracts are often effective all on their own, verbal agreements that supplement written arrangements, and verbal agreements to pay for the debts of another don't hold up particularly well when they aren't in writing.
With that in mind, let's look at the potential recovery options that a claimant might have. But, to be sure:
An owner who fails to pay their contractor can be held responsible for payment by claims outside of the mechanics lien process, and selling the property won't alleviate them of contractual duties (like making payment.
Mechanics lien rights after a property sale
Generally, the right to file a mechanics lien will run with the project property, even after a sale. So, if a claimant performs work, the property gets sold, and the claimant files a mechanics lien - the lien will still typically attach to the project property.
Of course, Utah does have significant restrictions on filing mechanics liens against new owners of residential property (found at § 38-11-107 of the state's lien statute). And, if work was done for the prior owner, the new owner might not actually be liable for lien claims.
Other legal claims may be available
If an owner had a contract with a contractor and didn't pay that contract - the contractor may be entitled to pursue a breach of contract claim against the owner. This is true even if some other party verbally agreed to pay the debt.
Further, even if contract claims weren't available, if an owner benefits from the work (like with an increased sale price, for example) - then something like an unjust enrichment claim could potentially be available to the claimant.
Finally, note also that Utah has prompt payment laws in place to ensure timely payment. So, an owner may end up liable under the prompt payment laws and even become responsible for interest penalties.