A contractor put a lien on my house in N.H. does he earn interest on the lien? How much time will a lien stay on my property?
1 reply
May 22, 2020
A New Hampshire mechanics lien won't automatically generate interest all by itself, but that doesn't mean you won't be responsible for interest on late payments. If the contract calls for interest, then interest should be paid and will legally be required. Further, if the dispute is litigated, then it's absolutely possible that the court might award interest to the contractor. Finally, if you're negotiating with your contractor for the release of the lien, it's certainly possible that they'll demand interest on what they're owed. That makes a lot of sense, too - as a general rule of thumb, late payments draw interest, and a court could force you to pay interest if things came to that. So it's a logical ask, and it's probably something owners should consider paying when they're on the wrong end of a mechanics lien dispute. Until there's a judgment on the matter, though - everything's negotiable. And, it's up to you to decide whether you want to push back against claims for interest. Consulting a New Hampshire construction attorney should help determine the validity of the contractor's claims and they can also help guide negotiations. As a final note, this resource should be useful to you: A Mechanics Lien Was Filed on My Property – What Do I Do Now?