How often does it happen where a home owner begins a construction project and then either runs out of money or decides they simply do not wish to pay? If you are a subcontractor, you may be in a precarious position because you do not have a contract directly with the home owner but only with a general contractor who could very well be under financed and therefore have no ability to collect on the debt to you. Construction Law can help you solve your payments issue.
The Mechanics Lien Act takes care of subcontractors who need relief. The rules are quite stringent and making a mistake on any one of them could render your debt completely uncollectable. Something as simple as a typographical error in the date of the contract will void your claim.
In the current economy, we frequently find situations where not only does the homeowner owe the contractors and subcontractors but they are in default of their mortgage as well. Still, if the contractor or subcontractor can prove they added value to the property, they can take priority over the mortgage company.
At the Law Offices of Howard Peritz, we have been assisting contractors and subcontractors record their liens and enforce them for several years. The enforcement mechanism is similar to a mortgage foreclosure where the successful contractor or subcontractor can actually force the sale of the property at which the material and labor were provided.
