The water is slowly receding, houses are starting to dry out and many home owners are negotiating with contractors to restore their home. Before you start writing checks, know this. You and your property are ultimately required by law to make sure everybody gets paid on your project. This means it is your job to make sure your contractor pays all suppliers and subcontractors. If any subcontractor or supplier is unpaid for any reason, they can put a mechanic’s lien on your home and force you to pay them directly, even though you already paid your contractor in full. Getting a lien on your house can mean a clouded title and sometimes result in foreclosure.
The best way to avoid the problem above is to get signed lien waivers from all suppliers and subcontractors each time you make a payment to your primary contractor.
- Get the signature
