Should I File a Builders' Lien?

In many cases, Builder’s Liens and Construction Liens can be useful tools when attempting to recover payment for services and/or material used to improve the land. But, when considering filing a lien, you need to think will my builders' lien be effective?

Builders' liens have an influence over money and land. Filing a lien on a property will have an impact on the funding of a project, for example, funds will not be disbursed for a new draw if there is a builders' lien registered on title. Builders' liens will also prevent the sale of land. Though it is not illegal to sell a property with a lien on the title, an informed buyer would not purchase a property with a lien registered against it.

When considering filing a builders' lien, you will want to contemplate whether the project is receiving funding and/or if the property will be sold in the near future. In many circumstances, when a lien is tying up project funding or the sale of land, it will be dealt with/ paid out quite quickly.

If a builders' lien is placed on a property that is not receiving funding for a project or a property that the owner has no intention of selling or remortgaging, the lien may have little to no impact. It is possible the lien will be ignored because it is not directly affecting the property owner.

In circumstances such as the one mentioned above, pursuing legal action or placing an account with a collection agency, may be more effective methods of recovering monies owed.

To conclude, an effective builders' lien will impact project funding or the sale of land. If you find yourself in a situation where your lien will not have an influence over money or land, there may be more effective methods of debt recovery.


Contact PCM Corp About Lien Filing Services

If you aren't sure whether or not you should file a builders' lien and if it will be effective in getting you paid, we are here to help. A Lien-pro agent is available to answer any questions or concerns you may have about your particular non-payment situation.

Let’s discuss the debt collection best practices that work best for your industry that will keep your clients happy. To schedule a free, no-obligation consultation please:

Call us at 1-866-266-0117         

Or send us an email

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