How to Avoid Fees Against Your Property?

Aug 1st, 2015 | By | Category: Waiver Form

Almost everyone is looking for ways to save money nowadays. This is especially true for persons with properties, whether personal or business. When doing business, you’ll interact with contractors, employees, vendors, clients, and others. If you are a homeowner you might hire a contractor to do home repairs or improvements. In either case, it will be important for you to know how to avoid fees against your property. You can find out more about this in the following write-up.

It is common for contractors, subcontractors, suppliers, and others to place liens against properties in order to recover money. Suppliers and subcontractors can use a mechanic’s lien to make a legal claim against your property. As an example, this can happen if you are doing remodeling work on your home and the general contractor did not pay the supplier of a bathtub or some other item. In another scenario, anyone of them could make a claim and take legal action if they are injured or has suffered a loss because of your business.

A subcontractor lien-waiver would put a hold on your property to make sure that any outstanding debt or maybe other obligation is satisfied in exchange for a contractor’s service, materials supplied, or a subcontractor suppliers or service.

Bear in mind that a general liability insurance policy could provide coverage whether you have to defend yourself against property damage, libel, bodily injury, slander or some other claim.

We will now look at how to avoid fees against your property:

You could obtain a lien waiver from everyone who a contractor has to pay for a job. A contractor has to provide waivers for all work that he or she is paid for in most states before accepting any further payment from the property owner.

However, you should bear in mind that mechanics lien waiver cannot be used in many states until payments are made.

Another way is to use joint checks for payments. For this, you could write out several checks jointly to your general contractor as well as supplier, subcontractor, or material providers to ensure that payments are made. The check can be cashed only if it’s endorsed by the ultimate beneficiary.

It would be a good idea to keep all the paperwork and receipts from general contractors, suppliers, subcontractors or equipment lessors. This is especially true for notices from suppliers or subcontractors for goods or services rendered.

This is perhaps the least favorable solution, but you could make payments directly to the suppliers and subcontractors and then deduct those amounts from what is owed to the general contractor. There is however a drawback with this option because you could appear to be the supplier’s or subcontractor’s employer and be responsible for carrying out duties such as holding income for Social Security and taxes.

At the end of the day, you need to remember that persons should abide by contracts in order to be released from their contract obligations.

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