Please note that the content of this post does not constitute legal advice nor does it create an attorney/client relationship and is for general informational purposes only.
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One of the riskiest situations to find yourself in as a homeowner or property owner is when a contractor files a lien in your property. Luckily, there are numerous protections and strategies to reduce your risk in such a situation.
The first question is whether the lien placed on your property was by a registered and properly licensed and bonded contractor. If they are not, it is likely that the lien is invalid. Additionally, if the lien was placed by the general contractor, they are required to provide you with statutory notice of their ability to place a lien under RCW 18.27.114. If the GC fails to properly provide you with this notice, their lien likely will be invalid. General contractors also have strict timelines as to when they can file liens. If they fail to file the lien within the proper timeframe, the lien will be invalid.
However, laborers, professionals, materialmen, and subcontractors are often not required to provide the statutory notice required under RCW 18.27.114. They have different requirements. Often, they are required to provide a pre-lien notice under RCW 60.04.031 which often protects the right to establish a lien 60 days before. Some categories do not require a lien notice whatsoever, and the notice requirements vary drastically depending on the type of construction performed, such as new construction, as compared to improvements.
Ultimately, lien analysis and litigation is highly risky for all parties involved. If you are a homeowner, property owner, or contractor, you should work with an attorney to ensure you are following all processes correctly, otherwise you may find yourself with a hefty bill for attorneys’ fees for filing an unlawful lien, or as the homeowner, for contesting a lawful lien. There are numerous strategies to reduce the risk for homeowners and property owners, such as filing a bond or deposit with the court while the propriety of the lien amount is disputed. It’s highly recommended that you work with an attorney regarding any lien issues to prevent surprise and avoid the many pitfalls in dealing with liens.
This article was written by Joseph Wagner, a construction law attorney serving employees in the State of Washington. It should not be construed as legal advice or creating an attorney client relationship. For more information, please reach out to us to schedule a consultation to apply to the facts of your situation.