Lien Filing on Forfeited Leased Properties

A mechanic’s lien gives contractors the right to hold onto property that has been improved on using their services. Lien filing is done in cases where clients are unable or unwilling to pay for services rendered. Once a lien is successfully filed, they have the option to either foreclose the property or take any “removable” from the property as payment for the debt. In the case of liens on leased property that has been forfeited, the contractor can still claim a lien on the estate in certain situations.

The following laws are applicable in the case where the tenant fails to pay their contractor for services rendered and causes a claim for lien on the property in question.

No forfeiture or termination of a lease by a landlord can prevent any person who has a lien on the property for their benefit of the lien. The only case where a landlord can withhold the benefits of a lien is in the case of forfeiture due to non-payment of rent. When this happens, the landlord is required to give a notice to all individuals who have registered a lien on the lease.

Contractors with a lien on the property have 10 days to supply the unpaid rent if they want to preserve the asset that the lien was registered on. If they can pay the amount the tenant’s rent, then they have the benefits afforded to them by their lien. This amount can then be added to the claim for lien. Claimants have the option to sell the property and get back the money spent from the proceeds of the sale.

To make sure that lien filing is made easy, it’s best for contractors who need guidance in these matters to work with an experienced and trusted lien filing company. Find out more at LienItNow.com.

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