The Law Office of Timothy H. Nichols, PLLCNashville Construction Contract Disputes Attorney | Murfreesboro Real Estate Lawyer | Business Litigation Brentwood Franklin TN2026-07-02T12:53:47Zhttps://www.tnicholslaw.com/feed/atom/WordPressOn Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[Does your new property have an easement?]]>https://www.tnicholslaw.com/?p=481292026-07-02T12:53:47Z2026-07-02T12:53:46ZWhen you purchase real estate, it is important to know if there is already an existing easement. With an easement in gross, you may be able to cancel that easement or negotiate with the other property owner about whether or not it will be upheld. With an easement appurtenant, however, you often have an obligation to uphold it because it is part of the property that you purchased.
Easements can sometimes lead to real estate disputes. They should be disclosed prior to a sale, for instance, and a dispute could occur if a buyer claims they were not told that the easement existed in the first place. They can also cause issues after the sale, such as when a new owner tries to eliminate an easement and the other party claims they do not have the right to do so.
What rights go along with an easement?
Typically, an easement just gives another person the legal ability to access the land, often to use it for a specific purpose. But they are not allowed to permanently occupy that land, alter the land in a significant way or prevent the property owner themselves from using the easement.For example, if one property does not have a driveway that connects to the main road, that property owner may have an easement on an adjacent property, allowing them to cross it to reach their own land. But they are not allowed to put up gates that prevent others from accessing the land, and they could not build permanent structures, like a garage. All they can do is use the shared driveway responsibly to gain the access that they need.In some cases, disputes over easements revolve around improper use, and these types of real estate conflicts can grow very complicated. Those involved need to know what legal options they have and how the law applies in their unique case.]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[What is scope creep?]]>https://www.tnicholslaw.com/?p=481252026-06-18T11:35:55Z2026-06-18T11:35:55ZIn the construction industry, scope creep is an issue where the project continues to grow and become more complicated. It often relates to budgets and deadlines. A construction company may start missing key deadlines, or the budget may grow out of control due to changes in the project.In some cases, this happens because there is no detailed plan to begin with or because there are unexpected changes once the project begins. Say that a construction company is hired to renovate a property, and it seems like a fairly straightforward job. But once they begin the demolition process, they discover that there are structural issues and old water damage. Suddenly, significant structural repairs become necessary, and the budget for the project spirals out of control.
Miscommunication can lead to legal issues
Communication problems can also lead to scope creep. Sometimes it is miscommunication, where the client and the construction company owner are never on the same page about what either one expects. They both feel like they are working on fundamentally different projects.In some cases, clients also do not understand how their requests are changing the project. Maybe the property owner is very hands-on and keeps requesting revisions or alterations. But then, when they get the bill, they are shocked by how much the project costs and how it appears to have gone over budget. Or all of the changes add a significant amount of additional work, so the project is not done by the deadline.In cases like these, disputes can sometimes occur, potentially leading to litigation between construction companies, subcontractors, clients and other entities involved in the project. For those who find themselves in this position, it is important to know what legal steps to take.]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[What you need to know about enforcing a construction lien]]>https://www.tnicholslaw.com/?p=481242026-06-08T10:45:04Z2026-06-08T10:45:04ZGetting paid on a construction project is not always as straightforward as completing the work and sending an invoice. Payment disputes can escalate quickly, especially when funds are withheld without clear justification or when project owners and contractors disagree on the scope or quality of work performed.
In such situations, filing a construction lien can become one of the most powerful tools available to protect your right to payment. However, enforcement isn’t automatic. A lien that sits without action expires, alongside your right to payment.
How enforcement works
Once filed, a lien places a legal cloud on the property title, but that alone does not automatically result in payment. To recover what you are owed, you must take additional legal action by filing a lawsuit to enforce the lien, usually in the county where the property is located. In essence, you are asking the court to recognize your claim and, if necessary, authorize the sale of the property to satisfy the unpaid debt. The process is governed by strict deadlines and legal procedures that you must adhere to. Otherwise, you risk losing the ability to enforce your lien rights.
Don’t let a valid claim die on a technicality
Construction lien law rewards those who act quickly and precisely. The contractors who lose enforceable claims don't usually lose them because their work was defective; they lose them because a deadline slipped or a procedural step was missed. It’s also worth noting that many lien disputes are resolved before reaching full enforcement. However, it is important to be prepared for escalation if necessary. If you've filed a lien and the payment dispute isn't resolving, reach out for urgent legal guidance to understand your options and take informed action to protect your interests.
]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[Are triple-net leases worth considering in Tennessee?]]>https://www.tnicholslaw.com/?p=481212026-05-27T12:39:32Z2026-05-27T12:39:32ZStructure of a triple-net lease
A triple-net lease is a commercial lease agreement in which the tenant pays base rent plus three additional categories of property expenses: property taxes, building insurance and maintenance costs. Terms tend to span 10 to 15 years or more, which makes it important to understand the full scope of what you are agreeing to upfront.
Potential upsides for tenants
While an NNN lease comes with significant responsibilities, it has the following advantages:
Lower base rent: Because you cover taxes, insurance and maintenance separately, the base rent is often lower than a gross lease would require.
Greater operational control: You have more direct say in how the property is maintained, which lets you shape the space around your business needs.
Possible tax deductions: The taxes, insurance and maintenance costs you pay may qualify as deductible business expenses, though a tax professional can advise on your specific situation.
The value of these advantages often depends on the terms you negotiated at the start. Clear provisions and renewal options can help you benefit from an NNN structure while limiting your exposure if costs rise.
Possible risks in the arrangement
Triple-net leases also carry risks such as:
Rising costs: Taxes can increase, insurance can climb and major repairs can arise without warning.
Long commitment: NNN leases typically lock you in for a decade or more, which limits your options if your needs or market conditions shift.
Significant maintenance burden: You are responsible for general upkeep and mechanical repairs, though the landlord typically remains responsible for major structural components.
To protect your bottom line, consider negotiating expense caps or strictly defining what qualifies as a standard "repair" versus a structural "capital improvement" before signing.
Tennessee-specific considerations in your agreement
The state does not have a dedicated commercial landlord-tenant statute that governs NNN leases the way residential tenancy law covers residential leases. The contract itself largely shapes commercial lease terms.
This contract-driven framework places a premium on precise drafting. If your lease does not cap property tax pass-throughs, clearly define maintenance duties or address what happens after a casualty, you may face costs you did not expect when you signed.]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[Latent construction defects can complicate cases]]>https://www.tnicholslaw.com/?p=481222026-05-21T13:14:53Z2026-05-21T13:14:53ZPatent construction defects are fairly obvious from the very beginning, which can make for a straightforward case if there is a dispute. A homeowner may enter their new property and realize that the construction company put in the wrong type of flooring material, for example. They instantly know there is a problem with how the job was done and they understand who is responsible.
But latent construction defects often take time to discover because they are hidden, or at least less obvious than patent defects. This can often complicate the case in a number of ways, making it more difficult to determine who was responsible.
When did the defect begin?
For one thing, there may be questions over when the defect was actually created. Say that a homeowner discovers that pipes in their basement have been leaking, causing serious water damage and the development of rot or mold. But it is a slow leak, so it may have taken years for them to even find the issue.Were the pipes installed correctly and then damaged after the fact? Has the homeowner done any personal renovations? Have they hired other contractors, such as a local plumbing company, that could have caused the damage? Or was there an inherent defect from the time that the house was initially built?It is easy to see from the water damage that there is clearly an issue with the property that has had an impact on its value. It will also be expensive to fix. But determining exactly who is responsible for that damage can be much more complicated in these cases, which often begin years after the initial construction work has been completed.Because of these complexities and the questions involved, it is very important for all parties to understand exactly what legal steps to take.
]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[Change orders in construction projects]]>https://www.tnicholslaw.com/?p=481172026-05-08T06:09:32Z2026-05-08T06:09:05ZChange orders are extremely common. A significant percentage of construction projects diverge from the original scope. Work can be added, reduced or substituted.For example, unforeseen site conditions can call for additional excavation. Or a project owner can remove components of the project, such as the construction of a parking garage, or want materials/equipment to be replaced, such as expensive tiles with cost-effective ones orcurtain wall glazing with precast panels to speed up installation.A change order usually results in increased cost, additional time and a lower contract price. Thus, it should be implemented appropriately, since it alters an existing legally binding contract. Here is how to do this:
Have a written and signed change order
It’s best practice for a change order to be written and signed by the involved parties. This formal amendment should include:
Information of the contract being altered (date, project title and contract number) to link the two documents
Detailed descriptions of the change
Added costs
Changes to the completion date
The updated contract value
A contractor or subcontractor agreeing to make changes without a legally binding agreement can be risky.
Avoid disputes as much as possible
A change order can lead to disputes if it’s not handled carefully. Involved parties should try as much as possible to avoid them. Many disputes stem from poor documentation, differences over valuation of the extra work, verbal authorization of extra work and slow approval processes that cause even more delay.Having numerous change orders in a single project can also increase the likelihood of disputes, especially when the aforementioned factors are at play. Change orders are generally considered inevitable in construction projects. However, they need to be approached from the right angle to be effective. Get more information to take the right steps when implementing a change order. ]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[Title issues with residential real estate]]>https://www.tnicholslaw.com/?p=481162026-04-23T12:42:40Z2026-04-23T12:42:40ZOne thing that can derail a residential real estate transaction is a title defect. It is very important to look into potential title issues in advance. They can often be resolved upfront to help the process go smoothly.
But what types of title issues should you be concerned about? What would a bad title look like? While every case is unique, below are three examples.
Outstanding liens
For one thing, there could be a mechanic’s lien or a tax lien on the property. This means that there is an outstanding debt. Before that property can be sold and the title can be transferred to another party, the debt needs to be taken care of.
Multiple owners
Things often get complex when there are multiple owners. For instance, perhaps two individuals purchased a property together years ago, but now just one of them is trying to sell. A similar issue is when two people have inherited a property, so they both have ownership rights, and one person may be attempting to sell the property without the approval of the other.
Paperwork errors
Finally, there can be significant paperwork errors. Maybe the title and the deed have inconsistent wording. Perhaps it is not clear who is truly the owner of the property and has the right to sell it. Maybe there are missing signatures on the documentation. Perhaps necessary documents are missing entirely, and they need to be located before a sale can take place.Have you run into any of these types of title defects during a residential real estate transaction? If so, it can help to work with an experienced attorney to seek a resolution.
]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[Home structural issue: Construction defect or disclosure failure?]]>https://www.tnicholslaw.com/?p=481142026-04-09T10:20:23Z2026-04-09T10:20:22ZWhen the builder is responsible for a construction defect
A structural problem often points toward a construction defect, even if you were not the person who originally hired the builder. In a fast-moving market, workmanship can suffer. Fortunately, a builder’s liability typically stays with the structure for several years, often up to four years. This means second-hand owners may still hold the original construction company accountable for poor quality.
In Tennessee, homeowners can start this process by sending a formal notice of the defects, giving the builder a chance to fix the issue. This is the first step to demand the home quality you were promised. It also prepares you for further action if the builder refuses to take responsibility.
When the seller fails to disclose a known problem
If you bought an existing home, the issue might be a real estate disclosure failure instead. Sellers are generally expected to be honest about material defects before a sale is finalized. Did the seller know about a shifting foundation or a leak? If they stayed silent or covered it up, they may be liable for the repair costs.
Focusing on the gap between the disclosure paperwork and the home's actual condition is vital. It helps you address the financial burden of repairs that should have been handled before closing. Holding a seller to their obligation for honesty prevents you from paying the price for someone else's secrets.
Protecting your investment
Balancing construction errors against real estate transparency is often a challenge. However, understanding your rights is the first step toward a resolution. Tennessee has specific deadlines that limit how long you have to file a claim. Acting promptly helps keep your legal options viable. Evaluating your contract and the property's history provides the clarity you need to protect your home and your peace of mind.]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[What do suppliers check before extending credit?]]>https://www.tnicholslaw.com/?p=481092026-03-27T07:51:47Z2026-03-27T07:51:47ZCharacter
Character means your payment reputation. Suppliers often start with your track record. Credit managers may review payment history, supplier references, credit reports and any past disputes. A company known for paying invoices on time usually stands a better chance of receiving credit terms.
Capacity
Capacity reflects your ability to pay. It focuses on whether your business generates enough cash flow to meet its obligations. Suppliers may review financial statements, current debts and the size of the project you are taking on. If the numbers suggest your company can comfortably handle the costs, suppliers may feel more confident extending credit.
Capital
Capital shows your financial investment. It refers to the financial strength behind your business. Companies with stronger reserves, assets or owner investment may appear less risky because they have resources to cover unexpected costs or payment delays.
Collateral
Collateral provides security. Some suppliers look for assets that could secure the credit, such as equipment, property or personal guarantees. While not every supplier requires collateral, having something that backs the credit can reduce the risk from their perspective.
Conditions
Suppliers also consider outside factors that could affect payment. They may look at the project owner, the payment structure, current construction market conditions or whether the project already shows signs of delays or financial strain.
Improve your chances before applying for credit
Understanding the five Cs can give you a clearer sense of how suppliers evaluate risk. If payment terms or lien rights are unclear, a construction lawyer can help you review the contract before the project begins. A little clarity early can prevent bigger problems later.]]>On Behalf of The Law Office of Timothy H. Nichols, PLLC<![CDATA[What is retainage in a construction contract?]]>https://www.tnicholslaw.com/?p=481112026-03-26T12:07:36Z2026-03-26T12:07:36ZWhat retainage means and how it works
Retainage is a set percentage held from progress payments during a construction project. Instead of paying the full invoice amount, the payer releases most of the payment and keeps a small portion in reserve. The payer holds this portion until the project reaches substantial completion and the contract terms are satisfied.
Tennessee law regulates retainage. State law limits the amount that a party may withhold to 5% of the contract amount. The law requires parties to place retainage funds in a separate escrow account. Failing to follow these escrow requirements can lead to legal penalties for the payer.
Retainage provisions worth reviewing
Before signing a construction contract, contractors and subcontractors may want to review the retainage language carefully. Key provisions may address:
The exact percentage withheld from each payment
When the payer must release retainage
Whether the contract allows partial release during the project
Conditions required before final payment
The process for resolving disputes
These provisions help define when payment will occur and what steps must happen first.
Financial impact on contractors and subcontractors
Retainage can affect project cash flow because the payer holds back part of each payment during the project. As a result, contractors and subcontractors may have fewer funds available while work continues.
This reduction may affect payroll and other project expenses. Contractors and subcontractors may need to cover those costs while they wait for retainage to be released.
For that reason, many construction professionals review retainage provisions closely before signing a contract.
Understanding retainage before signing
While retainage is a standard part of the industry, it should never be an area of uncertainty. It helps encourage proper project completion. At the same time, it affects when contractors receive full payment.
A careful review of these provisions can help contractors and subcontractors understand their payment schedule and reduce the risk of costly disputes later.]]>