[GA] Can a material supplier put a lien on a home if the homeowner already paid the contractor?

Georgia Legal
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Lawyer, Esquire
Lawyer, Esquire

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Unfortunately under lien laws if a materialman or supplier of materials is unpaid by a general contractor then they can file a materialmen’s lean on the homeowner’s property and essentially force the homeowner to pay the material supplier in order to keep them from foreclosing on the lien and forcing a sale of the property. In Georgia, this lien right comes from (GA Code § 44-14-361), and the supplier must strictly follow the filing, notice, and lawsuit deadlines in (GA Code § 44-14-361.1) or the lien is not enforceable. That same section also provides that the total of all such liens can never exceed the contract price of the improvements.

This is the case even if the homeowner has paid the general contractor because the law gives the homeowner the right to sue the general contractor for that money back. While that plays out, a homeowner can remove the lien from the property itself by filing a bond with the clerk of the superior court under (GA Code § 44-14-364), and for a lien on the owner’s home the bond only needs to equal the amount claimed.

So to boil it down, it sounds like your general contractor took the money and disappeared and didn’t pay his suppliers so if other suppliers are unpaid they will likely be contacting you soon about their bills.

Your recourse here is to track down your general contractor and sue them under a breach of contract claim to try and get your money back if they have any assets or any money.

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I had renovations done on my home though the remodeling company, and I’ve received a lien from the material supplier about unpaid material after we’ve paid $56,000 upfront and another $13,000+. We shouldn’t have a bill. They have also quit the job and left our place unfinished. What can be done?

user
Lexi
Lexi, Chatbot

I’m sorry to hear about the issues you’re facing with your home renovations; that sounds very frustrating. Can you tell me when the renovations were completed and when you received the lien?

The renovation are incomplete and I received the lien in the mail today.

user
Lexi
Lexi, Chatbot

Have you had any communication with the remodeling company or the material supplier regarding the unpaid material and the unfinished work?

We have sent an email to the remodeling company and called the material supplier today, no one answered.

user
Lexi
Lexi, Chatbot

Is there anything else the Lawyer should know before I connect you? Rest assured they’ll be able to help with your lien issue.

No.

user
Lawyer, Esquire
Lawyer, Esquire

Hello and welcome to the site! I am a licensed attorney and here to help with your situation. I know your question is important, but there may be a short delay in my responses as I type out an answer or reply as I am typically working with several customers at once on the website. I have read your post and I am sorry to hear you are having to deal with this situation as I realize it can be frustrating and confusing.

Is the material supplier some type of vendor or material supplier that provided materials to the contractor?

It says the material supplier engaged in business of improving real estate by performing services financial material and our equipment and claims a lien in amount of 3802 and $28 plus interest so they seem to have furnished material.

user
Lawyer, Esquire
Lawyer, Esquire

Unfortunately under lien laws if a materialman or supplier of materials is unpaid by a general contractor then they can file a materialmen’s lean on the homeowner’s property and essentially force the homeowner to pay the material supplier in order to keep them from foreclosing on the lien and forcing a sale of the property. In Georgia, this lien right comes from (GA Code § 44-14-361), and the supplier must strictly follow the filing, notice, and lawsuit deadlines in (GA Code § 44-14-361.1) or the lien is not enforceable. That same section also provides that the total of all such liens can never exceed the contract price of the improvements.

This is the case even if the homeowner has paid the general contractor because the law gives the homeowner the right to sue the general contractor for that money back. While that plays out, a homeowner can remove the lien from the property itself by filing a bond with the clerk of the superior court under (GA Code § 44-14-364), and for a lien on the owner’s home the bond only needs to equal the amount claimed.

So to boil it down, it sounds like your general contractor took the money and disappeared and didn’t pay his suppliers so if other suppliers are unpaid they will likely be contacting you soon about their bills.

Your recourse here is to track down your general contractor and sue them under a breach of contract claim to try and get your money back if they have any assets or any money.

Suing the general contractor seems like the likely course of action. What does something like this cost? I don’t have a ton of money.

user
Lawyer, Esquire
Lawyer, Esquire

You’re going to have to find a local civil law attorney to represent you because this is far over the small claims court limit. You’re probably going to look at anywhere from $3,000 to $5,000 up front as a retainer to get a local civil law attorney interested enough to take the case.

Should I go to the clerks Superior Court to see if this is a valid lien? Will they be able to tell me if there are others?

user
Lawyer, Esquire
Lawyer, Esquire

Yes, visiting the clerk’s office at the Superior Court is a good step to verify the lien. They can confirm if the lien is properly filed and valid. You can also ask if there are any other liens filed against your property. This will give you a clear picture of your current situation.

Is there any other advice you can provide?

user
Lawyer, Esquire
Lawyer, Esquire

Continue trying to reach the material supplier and let them know what is going on with the contractor and that you are working to address it. They may be willing to hold off on further legal action if they know you are a victim here. Also, collect all contracts, receipts, and communications related to the renovation project. This documentation will be crucial if you decide to take legal action. Given the complexity of lien laws and the potential need to sue the contractor, consulting with a local attorney who specializes in construction law can provide you with tailored advice and representation.

Did you have any other questions about this situation I can help with?

No. Thank you.

user
Lawyer, Esquire
Lawyer, Esquire

Glad to help even though the news isn’t great. Have a good evening and be safe!

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