Collections and Mechanic’s Liens

Avoid these mechanics lien mistakes

Mechanics’ liens protect landscapers, construction companies, and many other businesses against the risk of nonpayment. If a landowner refuses to pay for improvements made to their property, the business can often file a lien on the property. Filing a lien frequently incentivizes payment. If the landowner still doesn’t pay after the lien is filed, the business can foreclose on the lien.

However, the Minnesota lien process is very specific, and certain mistakes can prevent you from being able to record or enforce a lien. Keep reading to avoid the following mistakes:

Not realizing that you can file a […]

5 clauses that should be in every landscaping contract

“Will you look at my contracts and make sure they are good?” Our attorneys hear this frequently from contractors. So what does a good contract look like?

First, every contract is different. What works for some industries may not work in others. That said, several basic items should be addressed in every landscape installation contract.

Scope of Work. What will you be doing for the customer? What type of project is it? Be specific. The scope of work for each contract should be different and apply specifically to that customer and project. Let’s use a patio as […]

Get Paid or Foreclose

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A Simple Timeline for Mechanic’s Liens

Mechanic’s liens are a great way for contractors, subcontractors, designers, and materials suppliers to ensure they are paid for their work, but the law is very strict about the process and timeline for obtaining a lien.  As the landscape installation season is wrapping up, you should be sure that your company has dotted its i’s and crossed its t’s when it comes to obtaining liens.  Make one mistake now and you could lose your right to a mechanic’s lien when you need to collect.

What is […]

The Power of Charging Orders

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Satisfying Judgments Using Business Entities in Minnesota

A charging order is a tool that a creditor can use to try to satisfy a judgment of a debtor. The charging order is charged against a debtor’s interest in a partnership or LLC and attaches to the distributions the debtor would normally receive from the entity until the judgment is paid. The order will only give the creditor the financial rights, such as distributions of income or profits, the debtor owns in the entity. This means that the creditor will not gain any control of the business entity, instead […]