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Discussion Starter #1
Hi all,


I know its "Law", and with a new Contractor I'm working with I decided to give him and home-owner a 20-day prelim.

But man, I've been checking with about 4 contractors and it seems that for residential Subs, they rarely give 20-Day (I wonder if I should even post this).

Anyhow, my guess is a trust is built on a working relationship and once that is done it is foregone for many.

The thing is, I don't want to scare away prime-contractors as I'm trying to build the business, on the other hand its the "Law".

Is it usual for all subs to give a "New" contractor a 20-day on 1st job, and then not so for later projects? These sub-jobs are in the area of $12-$15k.
 

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animal lover /rat bastard
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it's up to you to cover your own behind. nobody else is going to do it.

if following the law scares them, read the last post ^
 

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All you're doing is intimidating with the law Onilozay. A lot of us hang our hats on colorfully worded contractual documents , signed, dated, notorized, proof read by council, etc.

Take it from a sparky who's made a career of contracting satans spawn , and subsequently forwarding said documents to judges , collections & laywers

All the law is going to do for you is claim your right, and you got screwed!

~CS~
 

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Discussion Starter #5
Are you saying not to issue 20 day prelim? I have certainly have no interest in intimidating I've just not been a contractor long and had much experience issuing them.
 

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Discussion Starter #6
Honestly, I'm not interested in intimidating, I just have heard so much conflicting info I wanted to post it here and see what others thought. I want to build my business, and if issuing scares away then why does law say I have to issue it?
 

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Honestly, I'm not interested in intimidating, I just have heard so much conflicting info I wanted to post it here and see what others thought. I want to build my business, and if issuing scares away then why does law say I have to issue it?
Well first off, you should really understand what threatening anyone with a mechanics lien amounts to Onilozay. Here are the liens laws by state.

So let's say you actually have to lien a job. Anyone with enough computer savvy to type 'google' can obtain the document, fill it out, pay the $5-10 fee to have it placed in the proper book/page @ the registry of deeds.

Next, you'll probably have to notify those whom you've liened (unless the reg does it for you) within XX days.

Then, expect an afternoon in court waiting for your turn to 'perfect' said document, meaning the judge rules for/against you

Then , you need to wait for the perp to ...

A) Die :thumbup:

B) sell:thumbup:

C) remortgage:thumbup:

To make good on it.

>BUT!< it gets better! Liens are often paid out numerically as entered, and the bank (if involved) always comes first regardless, so...if you're # 32 and the $$$ runs out @ 31, you go off singin the blues bros' rubber biscuit lyrics.:no:

>AND< if the perp is involved in a tax sale, there will be a 12-18 month (depends on state) right of redemption. If the perp redeems their property (@15-18%, which is why investors buy tax sales) THEN s/he is liable to pay all outstanding liens. If the buyer of the tax sale waits out that time with the perp being a no show, no liens apply (rubba biscuit again):no:

<IF> the perp is involved with the feds , they may not even register their liens on the deed at all , resulting in the lions share of it all being sucked down the federal budget rathole quicker than sh&t through a goose!:no:

Btw, this is just a thumbnail primer , and i'm not a lawyer, i only play one when my violin strings break....;)~CS~
 

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animal lover /rat bastard
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give them the notice !!

Steve - California is one of those states where you must notify the owners or prime contractor within 20 days of the commencement of work in order to preserver your legal rights later, if necessary, if you are a subcontractor. This is not about filing a lien, it is about establishing your right to do so, if desired, at a later date. By all means, file the notices !!
 

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Well first off, you should really understand what threatening anyone with a mechanics lien amounts to Onilozay. Here are the liens laws by state.

So let's say you actually have to lien a job. Anyone with enough computer savvy to type 'google' can obtain the document, fill it out, pay the $5-10 fee to have it placed in the proper book/page @ the registry of deeds.

Next, you'll probably have to notify those whom you've liened (unless the reg does it for you) within XX days.

Then, expect an afternoon in court waiting for your turn to 'perfect' said document, meaning the judge rules for/against you

Then , you need to wait for the perp to ...

A) Die :thumbup:

B) sell:thumbup:

C) remortgage:thumbup:

To make good on it.

>BUT!< it gets better! Liens are often paid out numerically as entered, and the bank (if involved) always comes first regardless, so...if you're # 32 and the $$$ runs out @ 31, you go off singin the blues bros' rubber biscuit lyrics.:no:

>AND< if the perp is involved in a tax sale, there will be a 12-18 month (depends on state) right of redemption. If the perp redeems their property (@15-18%, which is why investors buy tax sales) THEN s/he is liable to pay all outstanding liens. If the buyer of the tax sale waits out that time with the perp being a no show, no liens apply (rubba biscuit again):no:

<IF> the perp is involved with the feds , they may not even register their liens on the deed at all , resulting in the lions share of it all being sucked down the federal budget rathole quicker than sh&t through a goose!:no:

Btw, this is just a thumbnail primer , and i'm not a lawyer, i only play one when my violin strings break....;)~CS~
It varies by state but in California you can actually force the sale of the property to satisfy a perfected lien, even on a TI job. And in as little as 60 days.
 

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A friend of mine (a couple of decades ago) had moved to Florida from South Carolina to take a job as construction manager. He said it blew him away that as soon as contracts with subs were signed he got lien notices (I'm assuming it was a similar things as being discussed here) from every sub. Apparently it was SOP to do that.
 
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