Be Sure to Include Proper Lienable Amounts in Your Construction Lien

You know NOT to record a fraudulent lien! And, you know that including improper amounts in your construction lien can result in a fraudulent lien.  This means to be sure to include proper lienable items in your construction lien! These are items that bestow a permanent benefit on the real property and are performed under the general contractor’s contract with the owner.

By way of example, items that have been found to be improper items / amounts included in a lien are:

  • delay damages;
  • cleaning costs;
  • maintenance costs such as landscaping and pool upkeep;
  • lost profit;
  • change orders not performed in good faith, per the terms of the contract, within a reasonable time, and unnecessary to finish a job;
  • constructing a removable kiosk; and
  • insurance and property tax costs for a partially constructed property.

The prudent practice is to consult with counsel when preparing a construction lien to be sure proper lienable amounts are included in your lien.  The imprudent practice is to rashly prepare a lien including improper amounts that may result in your client being declared fraudulent.

Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.

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