What will happen if the builder won't paid the subcontractor after the closing but we already paid the builder in full Are we responsible and can they put a lien on our home What should we do?
Answer:
Generally, if the title to your property was free and clear of any lien by the subcontractor when your deed was recorded then it's too late for the subcontractor to record a lien now. The subcontractor would need to sue the builder in a separate court proceeding in order to get paid.
If there WAS a lien recorded by the subcontractor prior to the sale it should have been paid from the proceeds at the closing. Payment of any outstanding liens would be your attorney's responsibility.
If the subcontractor contacts you for payment refer them to the attorney who represented you in the purchase.
In Pennsylvania there is a new law that allows subs to file liens against your property even after you have closed and received free/clear title. Look into it if you're buying in PA. TH Properties was the builder, see website formed by the buyers: wheresbuilder.com
First answer by Kluss. Last edit by PAbuyer. Contributor trust: 2
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