If you are a resident of Massachusetts, then you may have heard of a notice of contract. This legal document is an important part of the construction industry in the state. In this article, we will take a closer look at what a notice of contract is, what it does, and why it is important.
What is a Notice of Contract?
A notice of contract is a document filed by a contractor or subcontractor with the registry of deeds in the county where the property is located. This document is a notice to the property owner that the contractor or subcontractor will be providing labor, materials, or both, for the construction, repair, or alteration of a building or other structure on the property.
In Massachusetts, the notice of contract is required by law. It is mandated by Chapter 254, Section 2 of the Massachusetts Laws. This law requires the notice to be filed within the first thirty days of any work being done on the property.
What does a Notice of Contract do?
The primary purpose of a notice of contract is to protect the rights of contractors and subcontractors. It serves as a notice to the property owner that the contractor or subcontractor will be providing labor, materials, or both, for the construction, repair, or alteration of the property. This notice allows the contractor or subcontractor to assert a lien on the property if they are not paid for their work.
Why is a Notice of Contract important?
A notice of contract is important because it protects the rights of contractors and subcontractors. If a contractor or subcontractor is not paid for their work, they can assert a lien on the property. This means that they have the right to foreclose on the property and sell it to recover the money owed to them.
Moreover, a notice of contract provides transparency in the construction process. It allows property owners to know who is working on their property and what work is being done. This transparency helps to prevent disputes and misunderstandings between all parties involved.
In conclusion, a notice of contract is an important document in the construction industry in Massachusetts. It serves to protect the rights of contractors and subcontractors, and it provides transparency in the construction process. If you are a contractor or subcontractor working in Massachusetts, it is important that you file a notice of contract within the first thirty days of work. And if you are a property owner, make sure that you are aware of this requirement and that all necessary notices have been filed.