Posted in Blog  
  on Mar 10, 2015

What Is a Lien Waiver

A lien waiver is a document that a creditor will send to someone when a debt has been paid off. It is usually given in the construction field as liens are commonly placed on property to make sure a debt is fulfilled. The lien waiver will tell the former debtor that the payment has been received and any future lien rights to the property for that specific debt will be waived.



Why Would Contractors File a Lien?

Many contract options for home repairs or new home construction involve direct payment. The contractor does the work and you pay a percentage down up front and then another percentage when the job is completed. A contractor's lien is another contract option that the services and supplies provided for a job will receive compensation at some point for the job. If a home owner pays off the debt immediately, then the lien may never be filed. If not, then a contractor may file for the lien if they believe that have met the obligations of the contract and not received payment.



When Do Contractor Liens Become a Problem?

The laws allow for subcontractors to file for liens if they do not receive payment for services. Instead of pursuing the primary contractor, they are allowed to file a lien on a property where they were contracted to work. This is why it is a best practice to include lien waiver language in any contract for services rendered. You have the right to not pay a contractor until they can prove they have paid all parties who may be able to file for a lien on the property. The best way to avoid liens or having to obtain a lien waiver is to select a contractor who is licensed, insured, and bonded for the work they are doing. This way you will have a way to pursue funds if there is a dispute about the quality of the work that was completed on your property. Don't be surprised by unexpected liens. Include lien waiver language in your contracts, hold your contractors to high standards, and at the end of the day everyone will be happy with the results.


How to Review a Rental Application

When it comes to reviewing a rental application, all of it may seem daunting; you will find it overwhelming because there is so much information that you yourself have to go through before the tenant... More

Prospective Tenants

In case you’re going to establish a new landlord tenant relationship, it is important that you proceed with extreme care. Though it is a good idea to offer your property for rent and make some money,... More

Rental Stats and Renting Data Statistics did a survey of renters who looked at their website for apartments. Their information is from New York City, but it is interesting to see some of the responses. Most apartment... More

Tips on Buying Real Estate for Rental Income

There are five basic types of real estate investments properties: Residential – single family homes to rent or rollover Commercial – Apartments and office buildings Domestic vacation – In the US:... More

How to Write an Apartment or Home Rental Ad

A well-written real estate ad will get a property owner more calls, faster rentals and potentially higher rents. Here are some of the elements of a perfect internet rental ad: Descriptive words –... More

Email Marketing Best Practices for Real Estate

How to Email Market for Real Estate Agents No longer does a real estate agency have to mail off thousands of post cards to everyone in an area to market their local industry. Email marketing can help... More

15 Home Security Statistics and Tips

Home Security Tips to Protect Yourself Popular home security methods include cameras that connect to your television, computer, or even smartphone. Follow these tips to protect your home and increase... More

13 Symptoms of Mold in a House

Common Household Molds and Health Effects A listing of common household molds found in your home, where they are located at, and health effects associated with each. Cladosporium This mold is... More

41 Home Energy Audit Tips for Efficiency

Home Energy Saving Tips If you want to lower your homes energy usage, turn off the lights in vacant rooms makes sense. However, here are some other ways to make a more significant decrease in your... More

10 Fantastic Home Staging Tips and Ideas

10 Tips to Home Staging A listing of 10 easy tips for staging your home for formal events, celebrations, special occasions, selling, and more. 1. Clutter - The first and most important tip to follow... More