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How to Deal With a Mechanic Lien During Your Residential Real Estate Transaction 

 Posted on September 23, 2022 in DuPage County Real Estate Attorney

DuPage County Residential Real Estate LawyerIf you are in the process of buying or selling a home, you may be wondering what to do if you come across a mechanic's lien during your transaction. A mechanic's lien is a claim that a contractor or subcontractor has against a property for unpaid work. If you are the buyer, this can be a huge problem because it means that the property you are interested in purchasing may have a debt attached to it. If you are the seller, a mechanic's lien can also complicate things because it may reduce the amount of money you ultimately receive from the sale.

What is a Mechanic’s Lien? 

A mechanic's lien is a claim that a contractor or subcontractor has against a property for unpaid work. For example,  if you hire a contractor to build a deck and the contractor is not paid for their services, they may put a mechanic's lien on your property. This means that if you try to sell your home, the contractor can come back and claim the money they are owed out of the proceeds from the sale. Unfortunately, some homeowners find themselves facing mechanic liens even if they believe they have already paid their contractor in full. 

Addressing Mechanic’s Leins During Residential Real Estate Transactions 

If you are selling your home, but there is a mechanic’s lien on the property,  the first thing you should do is try to negotiate with the contractor who placed the lien. You may be able to come to an agreement about how the debt will be paid off so that it does not interfere with your sale. Work with an attorney who can advocate on your behalf during negotiations and provide the step-by-step guidance you need. If you are buying a home and there is a mechanic's lien on the property, you may need to work out an agreement with the seller about how the debt will be paid before you can close on the home. 

In some cases, it may be possible to have the mechanic's lien removed from the property altogether. This usually requires going to court and proving that the work in question was either never performed or has already been paid for. 

Contact Our DuPage County Real Estate Lawyers for Help

The Wheaton real estate attorneys at Stock, Carlson & Asso. LLC understand how a mechanic’s lien can complicate a residential real estate transaction. We can help you understand your rights and options under the law and work with you to resolve the issue as quickly and efficiently as possible. Call 630-665-2500 to schedule a confidential consultation with one of our experienced lawyers today.



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