In a perfect world, a contract between two businesses would be enough to ensure that the work would be completed and proper payment would be made. Unfortunately, this is not the world we live in. Many construction companies, mechanics, and other contractors must take additional steps to ensure fair treatment. One common example is the mechanic’s lien.
Whether your company is providing or requesting a service, understanding business liens will help you protect your rights. The law firm of LaMarca Law Group, P.C. can provide the information, advice, and legal representation you need to protect your business’s future. Call your Iowa lawyers today at (515) 705-0233.
What Is a Lien?
When an individual purchases an item on a payment plan, then fails to make those payments, the seller will generally take the item back. However, this clearly is not a viable option for services such as constructing a building, repairing a car, and so on. Despite the name, mechanics’ liens are used by many different industries to avoid the risk of expending time and effort without being paid.
If a contractor, subcontractor, or supplier does not receive payment for their services, they can file a mechanic’s lien against the negligent party. This will transfer the title of the property to them until the debt is repaid. If it is not paid, the property will simply belong to the lienholder.
Of course, this is only a basic explanation. There are many details and complications that can arise when crafting a contract of any kind. Our Iowa business attorneys can help you fully understand and protect your legal rights.
Your Iowa lawyers at LaMarca Law Group, P.C. strive to offer skilled and attentive legal services to each of our clients. To discuss how we can help you, contact us at (515) 705-0233.