Tax lien laws were imposed upon a property to secure the payment of
taxes. This may be imposed for delinquent taxes owed on real estate or
personal property, as a result of failure to pay income taxes or other
taxes.
These were constituted as a means to protect labor subcontractors
from general contractors who could get full payment of the services
rendered property owner but neglected to compensate for the services or
supplies to finish the task.
This law allows unpaid workers to pressure the homeowner pay for the
services regardless of whether or not he has already paid the general
contractor for the completed job.
If the homeowner declines to pay up for the provided services after
the general contractor has neglected to pay, the subcontractor can
request for a lien to be put on the property to assure later payment.
However, this will not be an assurance for an immediate payment, but it
will ensure that the homeowner will not attain any profit on the
property without first paying the tax lien in full.
Although, Tax lien laws vary from state to state and it should be
explored before seeking on a particular property. Most states have
rigorous laws when imposing tax liens. It would be most effective to
file a tax lien right away even if you're still in negotiation with the
homeowner concerning payments. These liens can be easily removed but
can't be imposed after the deadline, regardless what the circumstances
might be.
When beginning at a fresh work place, you need to be cautious. Some
homeowners will settle their financial obligation when addressing with
general contractors. They will call for all subcontractors to sign tax
lien releases before the work commence or when making a final payment.
In this way, they will be free of the payment responsibilities
concerning subcontractors. Though, for subcontractors do keep in mind
that if you sign this waiver, you can obtain payment through the general
contractor and tax lien laws no longer apply.
Tax lien laws are not effective immediately, there are some processes
that the labourer must follow and must be aware that these laws differ
often dramatically when managing private projects vs. public ones, that
you must notify the homeowner that you're acting on the project with a
pre-lien form and you need to place a tax lien within specified
deadlines.
But as a subcontractor you need to know some few safeguards to apply
in order to ensure to be compensated in a timely manner and to be
prepared to make suitable action when they aren't. Keep pre-lien forms
on file for fast access, when signing a work contract, sent out filled
out pre-lien form to the homeowner through mail and watch lien deadlines
carefully to check that you are able to make a claim legally. If you
want to know more about tax lien, check http://www.taxsalessecrets.com/taxliens.html?orid=10519&opid=1 for additional details.
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