Anncr – Another Cohen Highley Legal Minute.
I’m with Cohen Highley’s Spencer Farias. If a construction or renovation company wants to place a lean on a home for unpaid bills, what should they know?
Spencer – The most important detail is that they must act quickly to be able to place that lean.
Anncr – Why?
Spencer – Leans must be registered within 60 days of the last day of work at the property. Construction companies can get themselves into trouble when they don’t bill their work right away and then offer terms on a net 30 basis or longer. By the time the bill is required to be paid, the company’s ability to place a lean on title to the property has or is likely about to expire
Anncr – Suggestions?
Spencer – Deliver the invoice on the same day you finish work on the property and offer a maximum of 30 day net terms. If you haven’t received payment by day 45, contact your lawyer. As your lawyer will need some time to get the required information to register the lean.
Anncr – Thanks, Spencer! This has been your Cohen Highley Legal Minute
