Real estate Q&A

McClatchy-Tribune News Service (MCT) - Q. My husband and I recently purchased a new home in North Carolina from a builder. The purchase went smoothly; there were no liens on the house etc. Since moving in, we have been contacted by mail and certified mail from three separate companies who did work on the house for the builder (cabinet company, lighting company, granite company) saying they were putting a lien on the house because of nonpayment.

We contacted the builder and their response was telling us not to worry, with reassurances like, "The title was clear when you bought it. They can't hold you responsible. We are taking care of it. This is a scare tactic to get us to pay them."

Is this something we should be worried about?

A. This is a very effective scare tactic if your builder has failed to pay for either materials and/or labor that were used to build your home. You can check with the county recorder to determine if these companies placed liens on your property. Material suppliers and sub-contractors have rights to file liens well after the construction is completed. It is possible that the liens were not recorded at the time of closing and that your builder signed an affidavit that there were no outstanding encumbrances on the property. These two facts would naturally satisfy the lender and the title company that clear title existed.

Your letter does not address whether you have title insurance. You should review your closing documents to determine if you have a title insurance policy and what coverage is provided. Based upon what you find through these inquiries, you will need to consult an experienced real estate attorney.

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(Dr. Thomas Musil is the director of the Shenehon Center for Real Estate in the Opus College of Business at the University of St. Thomas in Minneapolis. He has more than 25 years of experience in real estate as a broker, analyst, consultant and expert witness in real estate litigation and arbitration disputes. E-mail questions to: tamusil(at-sign)stthomas.edu. Please include your name, city and state.

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