Model Disclosure Statement Required in Washington To Protect Lien Rights When Contracting With OwnerOn October 26, 2010 By Scott Wolfe Jr
Ask yourself these three questions:
1) Are you a contractor of any sort?
2) Did you or do you contract directly with the property owner on any construction project(s)?
3) Is the residential project’s contract more than $1,000.00, or commercial project’s contract less than $60,000.00?
If you answered yes to these three questions, pay very close attention here. You must deliver a Model Disclosure Statement to the property owner before beginning work.
The Model Disclosure Statement is furnished to contractors by the Washington Department of Labor and Industries. It’s very, very easy to fill-out.
You must furnish the form to the property owner, have the property owner sign it, and keep a copy of the signed form in your files for a “minimum of three years.”
If you fail to do this, not only do you lose the right to file any mechanics lien on the project, but you can also be fined by the Labor & Industries, and may be in violation of Consumer Protection laws.
Unfortunately, too few contractors in the State of Washington are aware of this requirement. If you do business directly with property owners, get your hands on this form and present it to the owner at the beginning of every project.