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What form should be signed to protect our lien rights & ensure we get paid?

Pennsylvania

I'm the contractor that provided services/materials at a residential property. The homeowner's lawyer is battling with insurance co. to collect funds in order to pay us. The lawyer sent me a general letter advising our lien will be protected and we will be paid when a payment is made to the homeowner from the insurance co. Is there a type of form I should get signed by all parties that protects us and guarantees our bill be paid as soon as the homeowner is given the funds? State is SC.

2 replies

Sep 9, 2021

I am not sure that I understand your question. Your question is listed under Pennsylvania, so you should relist it under South Carolina if that is where the property is located.

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Sep 10, 2021
I am not sure of all of the remedies under South Carolina law, but generally the best way to protect your claim or right to payment would be by filing a mechanics' lien against the owner's property. You also could get the owner to sign a settlement agreement through which he agrees to pay you from the insurance proceeds. That route, however, would require the owner to agree to sign such an agreement (which obviously will be tough to obtain) and depend on the owner's right to receive payments from the insurer. The fact that the owner is "battling" with the insurer suggests that insurer is contesting coverage, which makes it more crucial to protect your rights by filing a mechanics' lien.
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