Promise to pay assessment
Advantages of Promise to pay assessment
When a construction is bound to happen there are many things and people that are needed. Not everything can be arranged by one person so it becomes important that a contractor is hired who will be able to bring together all the materials and workmen to start the project and complete it till the end.
The contractor needs to be paid for all the material and labour but if a promise to pay assessment is in force there is no need to pay the contractor right away. The payment can be done later. But, till the time the payment is pending the contractor who has the responsibility of providing the material of construction, the mechanic, the builder all have lien over the property on which the construction is taking place.
This promise remains in effect till the time the full payment has been made to all the people who were involved in the construction process. This arrangement is to protect the rights and the money of the contractor and several other people involved in the process of construction. Unless there is a full payment of all the dues the property is not free for the owner to be sold or given on lease. Moreover the lien claims that rest with the workers and the contractor will hamper any deal with another party whether it is for selling, renting or leasing purposes.
This makes sure that the payment is made in full to all the workers where as the owner need not pay the full amount at one go and can opt to give the payment as and when available to him.
Sample Template Preview
In consideration that _________ company furnish materials and labor and make improvements in the street on the premises, and to secure payment of the assessment, we promise to pay the assessment, and hereby mortgage the premises to _________ company, the contractor who is to furnish material and labor and make the improvements, a materialman’s, mechanic’s, contractor’s and builder’s lien on the premises to secure full payment of the indebtedness mentioned above.
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