Your Rights.
You, the property owner, are responsible for protecting your rights as you enter into a contract to build or improve your property. But the law in Pennsylvania protects sub-contractors. Why? The subcontractor needs protection because he is not a party to the agreement between you (the property owner) and the general contractor. Thus, the law gives the subcontractor special protections to see that he gets paid. Under the law, a subcontractor can get a lien (a mechanic’s lien) against the real property even if you (the property owner) have paid the paid the contractor in full!
Property Owners – Use Caution
If, for example, you pay a contractor $50,000 to build an addition onto your home, what happens if the contractor never pays his subcontractors? The answer is, your property may be exposed to a mechanic’s lien if you are not careful. You need good legal advice early at the time your home improvement agreement is drafted. Unless you address this issue in your contract with the general contractor, you may have to pay twice for the same work! Fortunately, there are ways to protect your rights.
Get Good Advice – Early
You should have an attorney review any home improvement contract. Answers are need for the following: Should bond be posted? Should the contract be performed in installments? What assurances do you have that the other side will perform on the agreement as planned? It always makes sense to have an attorney review your agreement. Our fees to review (or re-draft) an agreement are reasonable and we can potentially save you thousands (or tens of thousands) of dollars.
