Agreement Not To File Liens,
What are the details of agreement not to file liens
A lien is the right given over a property as a kind of security for debts that are owed to you. There are different kinds of liens. A mechanic’s lien is a kind of security interest in the property which benefits those people who have supplied the labor or material which was used to improve the property. This is called as laborer’s lien or construction lien or artisan’s lien.
These mechanics liens are enforced through judicial foreclosure sales which are similar to mortgage foreclosures using court proceedings. The court in case of liens orders the property to be sold and the proceeds go towards the liens.
The Agreement Not To File Liens dictates that the contractor and his sub contractors and all people acting through or under him will not file any mechanics liens or claims and that no claims will be filed or even maintained by any of them against the building or the lot on account of the labor or materials furnished or even the work done by him or any sub contractor under the present contract or any contract for any extra work or for any supplementary work with regards the contract for, in, towards of about the construction or erection of the building. It also means that the contractor both for himself as well for his sub contractors waives whatever and all the rights to lien. And that they are independent and operate independently with respect to the labor, materials or work done under the contract or supplemental contract or any extra work contract.
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