Certifying Payment for Labor and Materials in Kent County, Delaware
Under 25 DEL. LAWS, C. 27, 2707, prior to or simultaneous with the receipt of any full or final payment by the contractor, the contractor must provide the owner with one of two documents:
1) A notarized, verified written certification that the contractor has paid in full for all labor performed and materials furnished to date; or
2) A written release of mechanics' liens signed by all persons who would otherwise be entitled, containing a notarized, verified certification signed by the contractor that all of the persons signing the release constitute all of the persons who would be entitled otherwise to file mechanics' liens claims.
Providing a statement certifying the other potential claimants are paid lets the owner know that they are not at risk for a lien against their property. The certification identifies the parties, the location of the work or improvement, relevant dates, and a confirmation of payment. The contractor might also add a list of subcontractors and suppliers, along with payment dates and amounts, as well as any other information necessary for the specific situation.
Deliver the completed document to the owner either in person or via USPS certified or registered mail with delivery confirmation. The certificate may also be filed with the local recording office if appropriate for the circumstances.
Note that failure of the contractor to provide the owner a written certification or a release of mechanics' liens at such time shall constitute sufficient cause for the immediate suspension, revocation or cancellation of the contractor's occupational and business licenses. Id.
Each case is unique, so contact an attorney with questions about certifying payments or any other issues related to mechanic's liens in Delaware.
Deeds.com Delaware Contractor Certification of Payment Forms Have Been Updated as Recently as Wednesday August 21, 2019
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