Legal Question in Construction Law in Virginia
Mechanic's Lien / Purchaser
The builder has stopped progress on contracted property agreement and is attempting to sell the note (and property ''as is'') to another GC. Does the purchaser have an exceptation that the contract will be fulfilled by the new owners? If a party holds a property purchase agreement and this party (purchaser) has invested materials and improvements to the property, does the purchaser have the right to file a mechanic's lien for materials and improvements? And if so, will the lien be inforceable against the sale or the new owners?
1 Answer from Attorneys
Re: Mechanic's Lien / Purchaser
Sec. 43-3 of the Code of Virginia provides substantially as follows: "All persons furnishing labor or materials of a value of $50 or more..........for the construction, removal or repair of any building or structure
permanently affixed to the freehold" (meaning land) may file and perfect a mechanics lien for the value of such labor and/or materials.
You would appear to qualify as one entitled to file such a lien. (I assume that for some reason the cost of these materials and improvements is not provided for in the original purchase agreement.)
And, yes, the new owners would take title subject to the lien, if such had been properly filed and perfected.
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