We have a client worried about their contractor or builder not paying a company it got material from due to a dispute over billing. What are the ramifications? Can the unpaid supplier file a lien against your property? Can the supplier sue you as the homeowner?
The short answer is yes. Yes the supplier whom you may not even know exists can lien your home and yes the supplier can sue you as the homeowner to enforce payment.
Under Louisiana law, the materialmen do have a right to put a lien on the property if they were not paid for materials delivered to your house and incorporated into your property.
The good news: You have a right to sue your contractor if you paid him and he then didn’t pay the subcontractor, but that won’t get the lien removed. This may mean that the only “good news” is for the lawyers.
If you can’t get the contractor to pay, you may have to add your contractor into the suit if the subcontractor sues you. The subcontractor is required to file the suit within one year of his filing the lien.
It is always recommended that you consult a real estate professional before entering into any contracts, jobs or construction endeavors.