Legal Question in Real Estate Law in Maryland

Re: Builder Lien Waiver

There is no need to contact a settlement attorney, but you should make sure you have a well drafted building contract with the builder. It should include a draw schedule which allows you to retain a certain percentage of each draw to protect you against the builder's failure to properly complete the job. You want to make sure he's properly insured and bonded and of course licensed with the Maryland Home Improvement

Commission. Under no circumstances should you release final payment to him until he presents you with lien releases from all of the subs who worked on the job. You don't want to risk having a mechanic's lien filed against your property after you've paid him, even though it probably wouldn't be enforceable at that point.

Re: Builder Lien Waiver

A properly drafted lien release should provide you with the protection you seek; however, given the fact that you are probably entertaining a considerable sum of money, the release should be reviewed by an attorney. Release of A (i.e., one or singular) lien may NOT extend to sub-contractors where contractual obligations allow them to attach. The devil is in the detail with your matter.

Your present financial condition should not be a basis upon which you are contemplating full performance to pay under contract unless you have alternative financial resources to satisfy performance (i.e., full payment). This all depends on the contractor and how far they will go to collect to pursue their going concern.

A settlement attorney does not appear to be required, albeit this may be one of several bases upon which you can derive protection. You should have an attorney review your contract(s) and respective obligations.

G. Joseph Holthaus

(410) 799-9002