Contractor wants me to remove lien before he will pay me. If i remove the lien to get payed what was the purpose of the lien ?
1 reply
Jan 24, 2018
That's great that the contractor is ready to come to the table! This situation exemplifies the power of a mechanics lien. Upon a lien filing, the party who has failed to pay is motivated to resolve the dispute quickly in order to clear the property title. Ideally, when a mechanics lien is filed, payment will be made before foreclosure of the lien becomes necessary. To foreclose a mechanics lien, a lawsuit must be initiated, and litigation can be risky and expensive. When payment is made before this becomes necessary, it benefits all parties to the dispute. However, you are right to be concerned about the timing of the release. Once a mechanics lien is released, the claimant's greatest leverage for payment is lost. Generally speaking, it's a good idea to coordinate the situation so that a lien is not released until payment has been made. Of course, other arrangements to assure that payment is made before the lien is released (such as the use of escrow) may be available.