Familiar with a mechanics lien etc. but was not aware that the contractor (private/home owner has contract agreement with hired contractor) could file one against an owner, if said owner was not the direct purchaser of materials used by the contractor.
Owner has an agreement with the contractor to perform the work and provide the materials, owner is then automatically liable, co signer, now the bonding company for the contractor if he defaults on supplier payment, even if paid by the owner in full for the job.
In that case contractor must provide a material and performance bond in case of default. I've taken over multi million dollar contracts, hired by bonding companies that had contractors default or were defaulted for cause.
What a wrangled, ensuing, and embroiled legal mess these matters turn into, as the next step for the owner would be to sue the contractor, file a claim, file a lawsuit for the amount of the lien, said contractor would most likely be bankrupt with no assets or liquidity at that time. After all the years around this business, working with suppliers, I'll have to ask, what goes on, lawyers/supply houses. In the large scale scenario where I've worked, contractors have to furnish bonds, indemnify/hold harmless owners, provide insurance etc.
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