Can a Contractor Put a Lien on My House With No Contract?
If you recently contracted a brand new home to be built, you may have heard the term "mechanic's lien" from time to time. A mechanic's lien is a contract that guarantees payment to any contractors working on building your home. This lien is usually necessary to contract work on a project in order to ensure the contractors are paid even in the event of nonpayment or if the house goes into foreclosure.
As the owner of a newly constructed home, it may feel daunting to find out there is a lien against you. However, you have the ability to have a mechanic's lien removed from your home after all of the contractors' work has been finished. This DoNotPay guide will help you understand more about a mechanic's lien and answer the question of whether a . We will also offer an alternative to trying to get a mechanic's lien removed on your own.
What Is a Mechanic’s Lien?
A mechanic's lien guarantees that contractors will receive a payment if the homeowner goes into foreclosure or work terminates on a project for any other reason. If you think that builders will be your only problem with a mechanic’s lien, you’re wrong, contractors range from:
- Builders.
- Construction firms.
- Material suppliers.
Most contractors and subcontractors will require a mechanic's lien before they begin building. A mechanic's lien covers:
- Unpaid labor.
- Cost of materials.
- Equipment and machinery.
- Contracted labor and services.
There may be a number of reasons why you are late on a payment to a contractor that has caused that contractor to place a lien on your home, though sometimes these reasons can be out of your control, especially if a general contractor is late on paying their subcontractors.
The best way to avoid a mechanic's lien is to make sure every contractor working on your home is getting paid on time. However, even after you have paid all your contractors, a mechanic's lien can stay effective for up to six months after a project is completed. At that point, you may need to take action to have the mechanic's lien removed or voided.
Can a Contractor Put a Lien on My House With No Contract?
In most US states, a contractor or subcontractor can in place between you and the general contractor or construction firm overseeing the construction of your home. As the property owner, it is your responsibility to ensure all contractors and subcontractors working on your home are paid. Even if the general contractor fails to pay their subcontractors, the responsibility will fall on you. However, there are steps you can take on your own to have a mechanic's lien removed. They include:
| Making a deal with the contractor who placed the mechanic's lien | This may involve negotiating a payment amount and reaching a settlement to avoid time-consuming lien processes. |
| Filing a lien bond to have the lien removed | The property owner is entitled to obtain an insurance bond that covers the total amount of the lien. This ensures contractors will be paid and you will be able to have the lien removed from your property. |
| Filing a lawsuit against the contractor to have the lien voided | If you believe a contractor has filed a lien for an amount that you should not owe, you may need to take the contractor to court. This will involve getting an attorney and extra time and money, and should always be the last resort. |
Trying to understand and remove a mechanic's lien can be very time-consuming and confusing if you are new to owning a home. Fortunately, you do not have to face this issue on your own. DoNotPay has a Remove A Lien product that can help you work with a contractor to negotiate a mechanic's lien or start the process of having the lien removed. Follow the steps below to get started!
DoNotPay Can Help You
If you need to learn more about whether a contractor can put a lien on your house with no contract, DoNotPay is here to help. We've got you covered in three simple steps:
- Search for remove my lien on DoNotPay.
- Start our Remove My Lien product.
- Answer some questions about your specific lien and let us help you craft a letter to your creditor to resolve the issue.
And that's all there is to it! DoNotPay will help you navigate a mechanic's lien and understand if you can get it removed from your home.
What Else Can DoNotPay Do?
DoNotPay's Remove A Lien product is designed to help you remove liens on property and vehicles, or even personal liens affecting your credit. We can help you learn more about:
- Lien removal on your home
- Lien removal on your property
- Tax liens on your credit reports
- Removing a tax lien from the public record
- Lien removal on your vehicle
- Selling a car with a lien
DoNotPay has been in the business of helping simplify our clients' lives for many years. Our products are designed to help take the tedious work out of ordinary tasks, saving you time to enjoy the things you love. We can even help you save money! DoNotPay has products to help you:
- Sue anyone in small claims court
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Sign up for DoNotPay to learn more about our great products today!