{"id":369382,"date":"2016-04-04T10:47:24","date_gmt":"2016-04-04T15:47:24","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/owning-a-home\/contractor-s-liens.html"},"modified":"2023-11-30T15:52:12","modified_gmt":"2023-11-30T20:52:12","slug":"contractor-s-liens","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/contractor-s-liens.html","title":{"rendered":"Contractor&#8217;s Liens"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-8f761849 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n    \n    <div class=\"fl-page-articles fl-section-main fl-section-main-full-width\">\n        <h1 class=\"fl-no-margin-top\">Contractor&#039;s Liens<\/h1>\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/robert-rafii-esq\/\">Robert Rafii, Esq.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/aisha-success-esq\/\">Aisha Success, Esq.<\/a>\n                | Last updated\n        <time>\n                            November 30, 2023\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n<p>Liens allow creditors to secure debt payments. Lenders file liens against real property by recording lien affidavits with county clerks who maintain property records. The lien attaches to property until full payment secures a release of lien. Until final payment on debt owed, the owner of the property remains liable for the amount of the lien and legal claims from the lienholder.<\/p>\r\n<p>A contractor&#8217;s lien is a claim made by original&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/home-improvement-contractors.html\">contractors or subcontractors<\/a>&nbsp;who have performed work on a property, and have not yet been paid. This kind of&nbsp;<a href=\"https:\/\/dictionary.findlaw.com\/definition\/lien.html\" target=\"_blank\" rel=\"noopener\">lien<\/a>&nbsp;claim may also be known as a:<\/p>\r\n<ul>\r\n<li>Mechanic&#8217;s lien<\/li>\r\n<li>Construction lien<\/li>\r\n<li>Subcontractor&#8217;s lien<\/li>\r\n<\/ul>\r\n<p>Suppliers&nbsp;of materials (materialmen) may also file a&nbsp;mechanic&#8217;s lien. In some states, professionals such as architects, engineers, and surveyors may also be entitled to lien rights. As unpaid creditors, they may file a lien for nonpayment of services rendered such as:<\/p>\r\n<ul>\r\n<li>Home improvement projects<\/li>\r\n<li>Construction contracts<\/li>\r\n<li>Landscaping or remodeling<\/li>\r\n<\/ul>\r\n<p>The best way to avoid a contractor&#8217;s lien is by&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/home-improvement-payment-options.html\">paying your invoice on time<\/a>. If you are unable to pay or need more time, you may be able to&nbsp;avoid a lien&nbsp;by talking to the contractor and negotiating a payment plan. After all, contractors would rather work out a deal than go through the hassle of filing a lien against your property.<\/p>\r\n<p>This article focuses on contractor liens and lien laws affecting residential projects. See&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/understanding-mechanic-s-liens.html\">Understanding Mechanics&#8217; Liens<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/contractors-liens-select-state-laws.html\">Contractors&#8217; Liens: Select State Laws<\/a>&nbsp;for additional details.<\/p>\r\n<h2>Contractor&#8217;s Liens: Priority and Waivers<\/h2>\r\n<p>The priority of liens on a construction project does not depend upon the time of completion of the particular job. Instead, everything relates back to the first visible commencement of the work. This means the final work,&nbsp;such as painting,&nbsp;is equal in priority to the initial work of laying a cement foundation.&nbsp;<\/p>\r\n<p>During the entire work of construction, the owner must obtain lien releases or waivers of lien from each subcontractor and material supplier. Without these waivers or releases, the real estate is subject to liens of all the subcontractors, even if the general contractor,&nbsp;though paid in full,&nbsp;fails to pay the subcontractors.<\/p>\r\n<p>Disclaimer: It&#8217;s important not to confuse the above with lien priority in general. The paragraph above refers to liens amongst contractors, subcontractors, and suppliers. There are different kinds of liens and not all of them pertain to real estate construction.&nbsp;Banks, for instance,&nbsp;might record liens on property under a mortgage is paid off.&nbsp;<\/p>\r\n<p>Depending on&nbsp;<a href=\"https:\/\/dictionary.findlaw.com\/definition\/notice.html\" target=\"_blank\" rel=\"noopener\">actual or constructive notice<\/a>&nbsp;and recording dates, one party&#8217;s lien may be senior to another&#8217;s. States differ on the criteria that give priority to liens. Some states just require&nbsp;<a href=\"https:\/\/dictionary.findlaw.com\/definition\/pure-race.html\" target=\"_blank\" rel=\"noopener\">advance recordation<\/a>, while others&nbsp;require that a lien be&nbsp;recorded first, and written notice be given&nbsp;before it is deemed senior to another lien. In other words, a contractor&#8217;s lien may be junior to a third party&#8217;s lien that was previously recorded and noticed.<\/p>\r\n<h2>Lien Notification<\/h2>\r\n<p>In some states, contractors and subcontractors must notify the property owner prior to filing a lien. In others,&nbsp;such liens can be filed without any notification to the owner. Lien claimants who are contractors or subcontractors are protected under this legal doctrine because all their materials and labor are &quot;buried&quot; in the real estate, having become part of it.&nbsp;<\/p>\r\n<p>Unlike&nbsp;<a href=\"https:\/\/www.findlaw.com\/realestate\/mortgages-equity-loans\/what-is-a-mortgage-lien-.html\">mortgage liens<\/a>, however, the liens of these claimants cannot force a foreclosure. Instead, homeowners are on the hook to pay construction lienholders upon selling or refinancing their properties. In the alternative, they can obtain lien waivers by paying off contractors.<\/p>\r\n<h2>Contractor&#8217;s Liens: Additional Resources<\/h2>\r\n<p>State laws regarding contractor liens can get confusing. If you would like to do additional research after reading this article, click on the links below to learn more. Remember, if you are involved in real estate litigation, it is always wise to contact an attorney before making any major decisions regarding your case.<\/p>\r\n<ul>\r\n<li><a href=\"https:\/\/www.findlaw.com\/realestate\/legal-help-resources\/attorney-intake-form-purchasing-leasing-or-selling-a-home.html\">Attorney Intake Form: Purchasing, Leasing, Or Selling A Home &#8211; Litigation<\/a><\/li>\r\n<li><a href=\"https:\/\/www.findlaw.com\/realestate\/legal-help-resources\/purchasing-leasing-or-selling-a-home-documents-to-bring-to.html\">Purchasing, Leasing, Or Selling A Home &#8211; Documents To Bring To Your Attorney<\/a><\/li>\r\n<li><a href=\"https:\/\/www.findlaw.com\/realestate\/buying-a-home\/why-you-need-a-lawyer-when-you-buy-or-sell-a-house.html\">Why You Need a Lawyer When You Buy or Sell a House<\/a><\/li>\r\n<\/ul>\r\n<h2>Hit With a Contractor&#8217;s Lien? Get Professional Legal Help<\/h2>\r\n<p>If a contractor&#8217;s lien has been filed against your home, your best course of action is to either pay the amount,&nbsp;if valid,&nbsp;or negotiate a long-term payment plan. If you&#8217;re not sure whether it&#8217;s valid or need additional legal advice, it may be a good idea to speak with a&nbsp;<a href=\"https:\/\/lawyers.findlaw.com\/real-estate-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">real estate attorney<\/a>.<\/p>\r\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 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11.8119 19.236 12.01 18.67 12H16M9.00003 14V18C9.00003 18.7956 9.3161 19.5587 9.87871 20.1213C10.4413 20.6839 11.2044 21 12 21L16 12V0.999995H4.72003C4.2377 0.994543 3.76965 1.16359 3.40212 1.47599C3.0346 1.78839 2.79235 2.22309 2.72003 2.7L1.34003 11.7C1.29652 11.9866 1.31586 12.2793 1.39669 12.5577C1.47753 12.8362 1.61793 13.0937 1.80817 13.3125C1.99842 13.5313 2.23395 13.7061 2.49846 13.8248C2.76297 13.9435 3.05012 14.0033 3.34003 14H9.00003Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3423\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"\/>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n    <\/div>\n    <span class=\"was-this-helpful__taken-action fl-text-sm-bold\"><\/span>\n    <div 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Learn about advance recordation, constructive notice, and much more at FindLaw&#8217;s Real Estate Law Center.<\/p>\n","protected":false},"author":41135,"featured_media":0,"parent":369371,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"app\/Http\/Controllers\/Templates\/ArticleWithBreadcrumbsController.php","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_autodraft_ids":[],"_cloudinary_featured_overwrite":false,"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_show_comment_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","footnotes":"","cf_checklist_status":[]},"categories":[2741],"tags":[],"state_laws_tags":[],"flmsa":[],"class_list":["post-369382","page","type-page","status-publish","hentry","category-realestate"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/369382","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/users\/41135"}],"replies":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/comments?post=369382"}],"version-history":[{"count":0,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/369382\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/369371"}],"wp:attachment":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/media?parent=369382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/categories?post=369382"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/tags?post=369382"},{"taxonomy":"state_laws_tags","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/state_laws_tags?post=369382"},{"taxonomy":"flmsa","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/flmsa?post=369382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}