Maybe you run a successful tile business, and you supply beautiful tile for large-scale projects and also install it in residential properties. Perhaps you design and build new homes or commercial buildings. Working in the construction industry means there is always demand for the goods or services you provide, but it also means that you take some financial risks with each new project.
Whether you run an architectural firm, a construction supply company or a subcontracting business, you probably provide materials and perform labor before receiving payment in full for a project. Most of the time, you will receive the balance after the completion of the project.
If the client or contractor who hired you doesn’t pay you in full for your labor or materials, are you eligible to seek a mechanic’s lien on the property?
Ohio protects the rights of suppliers, construction companies and subcontractors
Ohio law gives the professionals and businesses that build and remodel properties certain legal rights. Specifically, they can file paperwork to request a lien against the property if they don’t receive payment in full for the materials provided or services rendered.
When you secure a mechanic’s lien, the property owner cannot sell, transfer or even refinance the property without repaying you or your company the full amount that they owe. Securing a mechanic’s lien can compel a client to pay you, but it does require filing certain paperwork and potentially going to court.
Having the right support when dealing with a serious construction issue, like unpaid invoices and mechanic’s liens, will make it easier for you to resolve those problems.