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Buyers should be on guard for mechanic’s liens

On Behalf of | Feb 9, 2018 | Real Estate Transactions |

Many home buyers in Broward County may buy a home because it has been recently re-modeled or because it is new construction. In fact, its newness may even be the primary selling point for the home.

One thing buyers need to be on guard for, however, is the existence of mechanic’s liens on the property. Among title issues that can come up in a real estate transaction, so-called mechanic’s liens are more serious, especially since the end result can be a construction firm’s foreclosing on the lien and taking the property out from under the new owner.

The rules governing mechanic’s liens are complicated and include a number of deadlines, notice requirements, and procedures. In summary, though, the exist to make sure that a construction firm gets paid for its work.

Like other liens and mortgages, the lien is against the property, not the person who hired the construction firm. Therefore, it does not matter whether the person who did not pay the construction company still lives in the home or has already sold it; the holder of a validly processed mechanic’s liens will have rights over the house.

One might find that their title insurance does not cover mechanic’s liens, particularly since they can be difficult to detect in a records search. Should that be the case, a buyer of the house who discovers a mechanic’s lien on their new property will likely need the assistance of an attorney who has experience in residential real estate matters. This attorney can help an owner negotiate or contest the lien and also pursue remedies against the person who caused the lien to be filed in the first place.