Week 11- Liens. Default Notice, Dispute Resolution, Protection of Persons and Property Flashcards
What is a lien?
a claim or change on property for the payment or performance of some debt, obligation or duty
What is the two purposes of the Builders Lien Act?
- enhance financial integrity of relationships
- facilitate credit
What are five types of lien?
- bank lien
- judgement lien
- mechanic’s lien
- real estate lien
- tax lien
What is a bank lien
-a lien granted when an individual takes out a loan from the bank
What is a judgement lien
a lien placed on assets by the courts, usually the result of a lawsuit
What is a mechanic’s lien
when property owner fails to pay a contractor for services provided
What is a real estate lien?
a legal right to seize and sell real estate property if a contract is not fulfilled
What is a tax lien?
-a lien put on the property of delinquent taxpayers by the tax authorities
When must a lien be registered?
-registered within 45 days of the occurrence of the specified events
What is a holdback?
-a person who is obligated to pay money to another does not pay the full amount but retains a portion
What are the two types of holdbacks?
- contractual holdback
- statutory holdback
How much is the statutory holdback?
10% of the total payment
When is a holdback released?
released after 55 days after the earliest of the three causes to a lien
What are six reasons for construction disputes?
- personality
- too many parties involved
- time
- money and profitability
- risk/mistakes
- other stressors
What are six ways disputes can be managed?
- avoidance
- capitulation (giving in)
- negotiation
- mediation
- arbitration (having a third party judge)
- litigation (take to court)
