Menu
Home>Levelset Community>Legal Help>would a customer be liable to pay twice for their work if there is a lien on their property. Is this true?

would a customer be liable to pay twice for their work if there is a lien on their property. Is this true?

Connecticut

I did a certification on here and it said that property owners would or could be liable to pay twice for the work that was done on their property if there is a lien on their property. Is this true? and how would you go about that? also in the state of ct can you put fees and taxes in the lien as well?

2 replies

Oct 14, 2022

Conceivably, a property owner might be required as a matter of law to pay for the same construction work or materials twice. This occurs if the property owner paid the contractor but the contractor failed to pay you as its subcontractor, provided that you properly filed a lien and provided a 20-day preliminary notice of your impending mechanics lien to the owner, contractor, and, if there is one, to the construction lender. In court, it is no defense that the construction work or materials were already paid for in full. If the property owner doesn't pay you as the subcontractor, you have a right to file suit, obtain judgment and foreclose your mechanics lien on the property and sell the property.

While this might seem grossly unfair to the property owner who had no contract with you as the subcontractor, that's too bad. Even in situations where the property owner paid the contractor but the contractor esconced with the money, or filed for bankruptcy, the property owner is still on the hook to pay you if you properly perfected the filing of your mechanics lien.

And yes, your fees and taxes that you paid can be included in the lien. 

0 people found this helpful
Helpful
Oct 14, 2022
Under some circumstances an owner may be required to pay twice, but it is not typical. An owner is entitled a credit for "good faith" payments made to the general contractor. However, if the owner had notice of a subcontractor's lien and still paid the general contractor (who then failed to pay the sub), the payment is not considered a good faith payment, and the owner can be required to pay twice. You can include things like fees and taxes in your lien if the general contractor is contractually obligated to pay those amounts and failed to do so.
0 people found this helpful
Helpful