In some states if you hire a contractor to do work, and they hire some guys and doesn’t pay them, those guys can put a lien on your house even if you payed the contractor. 😳
That’s why large projects require a performance bond and a payment bond. The performance bond covers the project, the payment bond covers subcontractors.
Not sure what the feasibility is for a household project, but it’s always good to look for a contractor who is licensed, bonded, and insured and ask for those documents before signing.
Absolutely. I work in the building material supply industry, and everyone in the office hates having to do a lien on a homeowner. It’s rare because we have pretty strict requirements on whom we give credit accounts.
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In my understanding a lein doesn’t usually lead to disclosure, they just make sure they get paid when it’s sold.
In some states if you hire a contractor to do work, and they hire some guys and doesn’t pay them, those guys can put a lien on your house even if you payed the contractor. 😳
That’s why large projects require a performance bond and a payment bond. The performance bond covers the project, the payment bond covers subcontractors.
Not sure what the feasibility is for a household project, but it’s always good to look for a contractor who is licensed, bonded, and insured and ask for those documents before signing.
Absolutely. I work in the building material supply industry, and everyone in the office hates having to do a lien on a homeowner. It’s rare because we have pretty strict requirements on whom we give credit accounts.