Sustainergy Cooperative Warning of Lein

Mechanic’s Lien Warning: 

The state of Ohio authorizes contractors who helps improve your property, but who is not paid, to record what is called a mechanic’s lien on your property. A mechanic’s lien is a claim, like a mortgage or home equity loan, made against your property and recorded with the county recorder.

Even if you pay a contractor in full, unpaid subcontractors, suppliers, and laborers who helped to improve your property may record mechanic’s liens and sue you in court to foreclose the lien. IF a court finds the lien is valid, you could be forced to pay twice or have a court officer sell your home to pay the lien. Liens can also affect your credit.

To preserve their right to record a lien on a contract for a single or double family dwelling, Sustainergy may file an Affidavit of Mechanic’s Lien within 60 days from the completion of work (which is the last day of work on-site); if Sustainergy does so, then Sustainergy and each subcontractor and material supplier who file the Affidavit must serve you with the Affidavit within 30 days from filing. This document is a lien, but it doesn’t mean that Sustainergy can take action on it. From the date of filing, Sustainergy has 6 years to file suit to collect on the Mechanic’s lien. If Sustainergy does forward with collecting on it, then you will receive a Notice to Commence Suit. In any event, you should expect to receive a Release of Mechanics’ Lien 30 days from the date that you completed payment. This timeline may be different for other types of properties.

Note that this procedure is not special to Sustainergy. All other contractors in any other similar company have a right to a Mechanic’s Lien if you default on your payment, even if they choose not to provide you with this information.

BE CAREFUL. You will not get any preliminary notices from Sustainergy before Sustainergy can file its lien. We will make our best efforts to communicate and negotiate any outstanding balances you have with us; however the law assumes that you already know they are improving your property and if you fail to pay for our services within 60 days from the last day of on-site work, we will file a Mechanic’s Lien to ensure that we will receive the compensation for our services.

PROTECT YOURSELF FROM LIENS. You can protect yourself from liens by getting a list from your contractor of all the subcontractors and material suppliers that work on your project, and by paying as agreed on and no later than 60 days from the completion of the work. 

PAY WITH JOINT CHECKS. One way to protect yourself is to pay with a joint check. When we tell you it is time to pay for the work of a subcontractor or supplier, you may write a joint check payable to both the contractor and the subcontractor or material supplier. 

REMEMBER, IF YOU DO NOTHING, YOU RISK HAVING A LIEN PLACED ON YOUR HOME. This can mean that you may have to pay twice, or face the forced sale of your home to pay what you owe.