I’m in the early stages of due dilligence on a park where the current owner is a complete disaster who has managed to stiff many of the contractors in town. If I end up closing on the park how do I:
-protect against mechanic liens. If someone did work in the park 6 months ago, and I then buy the park, that contractor can still place a lien on the property, correct?
-repair my reputation. I imagine when I start calling up contractors to do work in the park I’m going to get an earful about my park. Any advice on how to overcome this hurdle to get good workers to come back?
It is my understanding that the lien has to be placed (filed) prior to the ownership change. So you would definitely let the title company know that you have this concern and make it their concern as well. Also, I believe you ask them for an endorsement to cover this as well.
As for getting the contractors to come back and work for you. I would send them all a letter and make a phone call to them letting them know about the ownership change. We have had this happen as well in the past and a few times we have actually paid up front or with a wire once the work is done. Normally they want the work and just need to get comfortable with the new manager.