My builder asked me.....

Hell no

Tell builder to pay his bills

Kinda what I thought...

I'd seriously look in to getting a new builder. That guy is shady

Thanks for the replies ... Just sounded way off to me

Sounds like he has credit problems if he needs you to cosign.

Tell him to put his own house up for collateral.

hire an honest day's work for half a days pay

I mean, technically speaking you cant decide if you'll "allow" a lien on your property provided that it's filed properly and within the appropriate time. The supplier is required to notify you he's providing materials to the builder if the builder is working for you and your bank. But I'd be careful about what you sign.

That being said, I'd demand lien waivers from your builder each month and a list of suppliers/ subs so you can make sure he's paying his bills. If you get a signed waiver and then someone files a lien, you can legally tell them to pound sand.

Edit: now that I'm thinking about it OP, the document they want you to sign is probably a notice of supplied materials. Lien law basically has a loophole that if a third party supplier provides material but doesn't tell the primary contractor within the timeframe, they forfeit their lien rights. I'm a little rusty on the time frame, I think it's within 90days of first delivery of materials.

Is it in your building contract with your builder to sign such a document? If not, then I'd tell him to frick off. His ability (or inability) to pay his vendors is his problem, not yours.

The whole point of hiring a builder is for them to deal with issues such as this.

quote:

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Builder says lumber supply place needs me to sign documentation that if builder doesn't pay for lumber we will allow lien on new home...first time building so is this normal procedure??

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No. Not remotely.

I'd do it if the builder signed a document that I get to bang his wife if he doesn't pay.