New resource offers navigation assistance for lien, bond laws

Generally, property titles cannot be transferred until the liens have been satisfied; if a property owner does not pay all debts covered by the liens that have been filed, they could even be forced to sell their property, through foreclosure, to satisfy the debt.

NACM’s new division, National Lien and Bond Services, is a resource that businesses can use to understand lien and bond issues.

“I believe construction-oriented credit is the most difficult environment in which to sell,” said NLBS President Greg Powelson, in a news release.

A particular challenge comes from having multiple parties involved in determining how much and when a creditor is to be paid, and Powelson noted that with construction credit, there is an actual building in which to secure, providing an opportunity to reduce credit risk through lien rights.

On April 16, NLBS released its first service, the NLBS Lien Navigator, at www.nacm.org. It is a Web-based guide for notice, lien, payment bond and suit time requirements.