HIDDEN LIENS

WHAT DOES THIS TERM MEAN?
Do your mechanic's lien laws have a mechanism for contractors, subcontractors or suppliers to publish their participation in a construction project? Most states do not. Consequently, purchasers, lenders and closing attorneys are unable to determine who has worked on the project and deserves to be paid - often until long after closing. Unfortunately this hidden information can result in a mechanic's lien being placed on the property, which can ultimately lead to foreclosure.

The SCR system allows (but does not require) potential lien claimants to give notice they are working on a project. By doing so, closing attorneys, lenders and purchasers will have the ability to address known potential interests prior to closing.