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 email@example.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.