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What are my rights when customer moves out of state, the house is in someone elses name, and no way to contact?

Im on a job where the homeowner moved back to california, and I was to finish the job. I started doing research and in downtown records the deed is in someone elses name not the customer who hired me. The customer stated it was there home amd they are selling. What are my rights?

1 reply

May 1, 2020

Even if a customer has sold their home during construction, mechanics lien rights will generally carry on with the property. Lien rights secure payment by staking a claim against the property, not against any individual. So, it's possible that a valid and enforceable mechanics lien claim could be filed even after the property is sold. More on AL mechanics liens here: Alabama Mechanics Lien Guide and FAQs. If the customer never owned the home, things would get more interesting. If they were a tenant at the property, and if the tenant was within their rights to undertake the improvement, then a mechanics lien may be available against the owner's property (i.e. the land) in addition to the lien rights available directly against the lease. Even if your customer wasn't the tenant, per se, lien rights could still be available if the owner had authorized your customer to improve the property. If the customer wasn't the owner, wasn't the tenant, and if the owner didn't give that customer permission to improve their property, then lien rights certainly wouldn't be available. Though, contract claims against that customer could be on the table. And, in that case, legal claims against that customer would likely be the only way to recover payment.

Steps to get paid when the customer disappears

If you absolutely cannot make contact with the customer, reaching out to the property owner might be a good idea. Contacting them about the situation and asking them to make payment could help to get a feel for what's going on with them, your customer, and the project. Escalating things with a Notice of Intent to Lien can turn up the heat on the owner as well. If they understand that you'll file a lien if you remain unpaid, they might be willing to either pay you themselves or force their customer to pay. Finally, depending on the situation, actually filing an Alabama mechanics lien might be appropriate and could lead to payment. Additionally, a claim like unjust enrichment might be on the table, too. So, sending a payment demand letter or pursuing legal action could be another option. But, for full clarity on what options will be available, it'd be wise to consult with an Alabama construction attorney. They'll be able to review your project information and the circumstances surrounding your nonpayment, then advise on what options would be best for moving forward.

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