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Lien Contract

This document is a Lien Contract between a property owner and a contractor for building improvements. It outlines the contractor's obligations, payment terms, and the owner's agreement to secure a lien against the property for the contractor's expenses. Additionally, it specifies insurance requirements and conditions under which the contractor may not start work until all agreements are executed.

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Anand Ponmudi
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228 views2 pages

Lien Contract

This document is a Lien Contract between a property owner and a contractor for building improvements. It outlines the contractor's obligations, payment terms, and the owner's agreement to secure a lien against the property for the contractor's expenses. Additionally, it specifies insurance requirements and conditions under which the contractor may not start work until all agreements are executed.

Uploaded by

Anand Ponmudi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Lien Contract

This Building Construction & Mechanics Lien contract is made and entered into on
MM/DD/YYYY at (address) between (owner of property), hereafter referred to as “Owner”, and
(contractor), hereafter referred to as Contractor. It is understood that “Owner” and “Contractor”
may include multiple owners and contractors. The parties agree as follows:

1. In consideration of a sum of money agreed upon, Contractor agrees to perform, at his own
expense, improvement work upon Owner’s property located at (address). Said improvements
are to include (specify) and are to be completed by MM/DD/YYYY.

2. Contractor will, upon execution of this contract, furnish a bond in the amount of $X, which
shall be conditioned upon contractor’s payment of all bills due for materials, labor, and any other
items so that no party engaged by the contractor shall have cause to place a lien against the
owner’s property. The bond shall be payable to the owner and his assignees, if any.

3. In consideration of the improvements described above, owner agrees to pay contractor the
sum of $X which shall be paid as follows:

$X cash.

$X in the form of a note executed by the owner to the contractor, with interest bearing from the
date of this agreement. The payment schedule shall be (list dates or milestones, and dollar
amounts due at each).

4. To secure payment of contractor’s expenses, the owner hereby gives an express


materialman’s, builder’s, and mechanics’ lien against the property mentioned above and all
improvements made to it.

5. Contractor agrees to carry insurance as required by law on the property, materials, workmen,
and all other activities that contractor shall carry out upon the property. Owner, upon completion
of the improvements, shall be responsible for obtaining insurance upon them.

6. Failure to complete the improvements, or failure to complete them according to the terms of
this contract, shall not defeat the lien agreement and indebtedness of the owner to the
contractor. In the event contractor fails to complete the contract, the owner’s shall debt shall be
as stated above less the reasonable cost of completing the work.

7. In the event owner makes any improvements to the property subsequent to the execution of
this contract, it is agreed that owner’s indebtedness and lien shall include said improvements.

8. The note or notes described above shall constitute first liens against the owner’s property,
preferable to any foreclosure and any other notes given by the owner to other parties.

9. Contractor shall not start work until this agreement, and all notes and insurance specified in it,
have been executed and filed with the appropriate county registry. Contractor will comply with
all applicable laws and regulations in performing the work, including obtaining, at his own
expense, any licenses or permits required.
In witness to their agreement to these terms and execution of this agreement, the parties affix
their signatures below:

_________________________________________
________________________________________

Owner (print name)

_________________________________________
________________________________________

Contractor (print name)

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