Solera Home Improvement provides remodeling services in the greater metro area of San Jose, CA
Home Remodeling – San Jose – Process – Lien Releases
A mechanics lien is a security interest in a property which can be filed by anyone who provides labor or materials in the course of improving a property.
Believe it or not, they were created by Thomas Jefferson and exist to protect contractors against non payment.
Anyone who provides materials are labor for your home remodeling project can file a mechanics lien.
If you pay your general contractor, and for whatever reason the general contractor does not pay a material supplier or a sub-contractor, the material supplier or sub-contractor can file a line against your property.
This clouds the title of your property and must be cleared before your property can be sold.
I’ve heard of one case where a lien sat on a commercial office building for twenty years, and when the owners decided to sell the building, it came up in the title search and had to be resolved before the sale could go through.
To make sure no one has a lien against your property, get lien releases from your general contractor and every sub-contractor who worked on your job.
I recommend you write the contract such that the final payment will be made once the lien releases are delivered.
A lien release does not mean a lien ever existed, it means no lien exists now.
Keep these documents in a safe place, until such time as you a title report and determine for sure there are in fact no liens.
I hope you find this information useful.