When a construction contractor performs work, he expects to get paid. Unfortunately, many clients see things differently. In fact, simply getting paid is often a contractor’s biggest headache.
Thankfully, they can take matters into their own hands by filing a mechanics lien on the property. However, to take full advantage of a lien, they need another handy legal tool – the lis pendens.
What is a lis pendens?
“Lis pendens” is simply latin for “suit pending.” It is not a lien, but a type of notice that informs the public that a lien has been placed on the property.
A lis pendens is filed in conjunction with the lien, letting prospective buyers know that the property is the subject of a legal dispute.
How does a lis pendens help contractors get paid?
A lis pendens makes a mechanic’s lien much more powerful. A property is incredibly difficult to sell if a lis pendens is attached to its title. In fact, most banks simply refuse to issue a mortgage loan if a lis pendens is on the property.
Secondly, a lis pendens ensures that the lien stays with the property, no matter who owns title.
Although a lis pendens seems like a simplistic tool, its usage is governed by a series of laws that vary state to state. Using one incorrectly not only renders your lien much less effective, it may also trigger harsh civil and even criminal legal consequences.
Fort Lauderdale residents should always seek the help of an experienced construction lawyer. They understand the subtleties of the law and can identify potential issues before they arise, saving you time, money, and stress in the long run.
