Difference between revisions of "Builders Liens"
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The ''Builders Lien Act'' says that money received by a contractor or subcontractor for work done constitutes a “'''trust fund'''” for the benefit of people they hire on the project. Trust funds cannot be used to the personal benefit of a contractor or subcontractor until they pay the people they hire on the project. A contractor or subcontractor who does not follow these trust rules may be personally liable for '''breach of trust'''. This is sometimes a way for lien claimants who are not fully paid using their lien rights to recover further amounts owed to them. | The ''Builders Lien Act'' says that money received by a contractor or subcontractor for work done constitutes a “'''trust fund'''” for the benefit of people they hire on the project. Trust funds cannot be used to the personal benefit of a contractor or subcontractor until they pay the people they hire on the project. A contractor or subcontractor who does not follow these trust rules may be personally liable for '''breach of trust'''. This is sometimes a way for lien claimants who are not fully paid using their lien rights to recover further amounts owed to them. | ||
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