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post #1 of 8 (permalink) Old 05-30-2013, 01:59 PM Thread Starter
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Lien Law Changes

Lien laws have been changing in most States and be sure to keep aware so you protect your rights.

In Iowa, many States now adopted according to our Law team, the right to file a lien has adopted new requirements...good and bad.

Good: right to file a lien is now 2 years and 90 days.
Bad: To be given "first" right to recover this lien must be filed in the first 90 days following last work. After that you "get in line" for your portion of recovery.

Now the:

Very bad: Before the beginning of each project you must file a "Notice of Commencement of work" 10 days prior to commencement of work. Cost is $10.00 filed with the Secretary of State office. Without this Commencement of Work form on file you cannot file a lien on any property. This form is then sent from the Sec of State office to the customer informing them of your reservation of rights under the respective Contractor rights. NOTE: you cannot file this form unless you are Licensed in the State as a General Contractor. Also note: A subcontractor has to file the same form as the GC if they want to protect their rights otherwise they cannot file a lien.

Was informed these laws have been adopted in many (not all) of the States. 3 out of 4 for our States.

Objective Opinion : Can you imagine filing 100's of these on a Service Company and they a copy of each Notice? Can you imagine the TIME it will take to fill out all the forms? Are you willing to pay $10.00 for each Notice?
Its another MoneyGrab from the States and another REDUCTION of the rights of the Contractors!

Thats my .2$ worth.
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post #2 of 8 (permalink) Old 05-30-2013, 02:26 PM
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That sounds like standard contract style work between homeowner and contractor or GC. I would not think a law like that is applicable to job approvals with a 48-72 hour turn around. I also would limit my filing to jobs over x amount. In the case of Nationals, I would file sporadically to keep them honest. I rather enjoy it when a rep calls and complains when we won't budge on something or inform them of our rights....
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post #3 of 8 (permalink) Old 05-30-2013, 02:38 PM Thread Starter
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GTX,

Yes it is contractor law. Probably the biggest concern is when you are doing a project with a homeowner BUT it is also the same as a subcontractor/contractor to a Service Company doing a P&P work order.

Almost makes me want to sign up with another Service Company and file a 100 or so of these so they "blow up" over the forms

Almost.....
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post #4 of 8 (permalink) Old 05-30-2013, 04:27 PM
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It's already that way in my state, have to be licensed and file paperwork when you start the project in order to have a right to file lien .... it's just not practical for us to do that.
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post #5 of 8 (permalink) Old 05-30-2013, 07:56 PM
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how do you file 10 days prior to the work being started???
Why does this reek of SG?????????????????????????
They couldn't be that persuasive could they???

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post #6 of 8 (permalink) Old 05-30-2013, 09:25 PM
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This is not new info in Michigan. Its been that way for over 10 years.

Just an fyi 95% of p&p work you can't file a lien on it in Michigan.

Check you state laws
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post #7 of 8 (permalink) Old 05-30-2013, 09:38 PM
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Wow, another reason to rethink things
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post #8 of 8 (permalink) Old 05-30-2013, 09:44 PM
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If you think there's a good chance you'll need to file a lien then why keep that client?
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