Saturday, March 3, 2012

Homeowners Cautioned: Beware of Contract Mechanics Liens

Homeowners need to be aware of scams involving roofing and other home repairs provided by contractors! Our office recently talked to one of seventeen homeowners in the Greensburg area who had their roofs all repaired by the same Texas company in the aftermath of a tornado. The Texans never paid for the supplies they used in repairing the roofs. All homeowners paid in full for their roofing jobs, only to discover that the Texans never paid for the supplies used to repair their roofs. The local supply company filed mechanics liens on all the homes. The supplier is entitled to judgment against the homeowners, even though the Texans were paid in full. If the liens are not paid, the supplier can foreclose on the homes.

Legally, the homeowners will have to pay twice for the roofing materials, once to the Texans and once to the supply company. It isn't fair, but it is the law of mechanics liens.

Mechanics liens are intended to protect subcontractors and suppliers who are not paid by the contractor. Anytime you contract for a home repair, make sure you either have a non lien contract signed by the subcontractors or suppliers or you withhold money until you are certain all suppliers and subcontractors are paid. Otherwise, you could be in double jeopardy for paying twice.

There is an encouraging post script to the Greensburg story. The Greensburg District Attorney is investigating the Texas roofing company for theft by deception. The Texans could face criminal charges for their fraudulent conduct. The fear of being incarcerated may be what is needed for them to pay the roofing supplier so that our fellow Pennsylvanians are not stuck with paying twice for their shingles, nails, and other materials.

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