Roofing Co.'s want Homeowners to sign "Lien" before work is started

Started by JanetS • 4 replies • 2237 views

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JanetS (Arizona)
Posts: 14

Posted:

Our BOD has hired a roofing company to re-roof our condo's and the roofing company wants us to sign a lien before the work starts....The HOA is responsible for paying the roofing company, and responsible for taking care of our roofs, so what happens if I do not sign? Do they have to re-roof my unit anyway?

SteveH (North Carolina)
Posts: 10

Posted:

Janet,

When the bill is paid, the lien is gone anyway. It shouldn't be a concern. The roofer just wants to make sure the job is paid for in the end. The lien process is to prevent people from hiring a contractor to complete work and then quickly selling a unit. If the contractor had to wait the 60-90 days to go through the court system, the owner would be long gone.

In a condo situation, it can get even worse. There's no way the contractor can be guaranteed that nobody in a given building will sell and close between the signing of the contract and the completion of payment. He might not even know that one is for sale.

And no, the contractor doesn't have to do ANY of the job unless they are fully protected. This is rarely the case however, and your signature is probably only back up to board signature that under provisions of your HOA bylaws allows the board to sign any legal documents required to affect repairs to the common property.

SamuelB (North Carolina)
Posts: 83

Posted:

Steve, that isn't the way it works in North Carolina (or other states I've been associated with). The Association should be Incorporated as a non-profit Corp., then the Board (usually the President) signs a contract with the roofing company. The homeowner is not involved in that transaction, except that the homeowner should know that the reserves are in the reserve account to pay for that job. If a lien or loan is required, the Association should be the one going forward, not the homeowner.

I fly because it releases my mind from the tyranny of petty things . . . - Antoine de St-Exupéry

SamuelB (North Carolina)
Posts: 83

Posted:

Posted By JanetS on 01/16/2006 7:31 AM

Our BOD has hired a roofing company to re-roof our condo's and the roofing company wants us to sign a lien before the work starts....The HOA is responsible for paying the roofing company, and responsible for taking care of our roofs, so what happens if I do not sign? Do they have to re-roof my unit anyway?

Janet, what state are you in and is your HOA incorporated as a non-profit corp>?

I fly because it releases my mind from the tyranny of petty things . . . - Antoine de St-Exupéry

LisaS (Illinois)
Posts: 341

Posted:

There are a number of technical legalities involved here that do vary by state. Do not sign if you do not know them.

What may seem like a simple signature can cause all sorts of grief if you aren't sure what your signature commits you to. The Board should have the authority to sign whatever forms the contractor requires, and have the work proceed. Ask around... I am sure you are not the only one who has taken pause.

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