Mechanic's lien
A lien filed by a contractor or supplier who didn't get paid for work on the property. Comes up often on homes that had recent renovations.
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Free to set up. No credit card.Part 1 of 4
Why a seller cares
A contractor or supplier who was not paid for work on your home can file a lien, and a recent renovation is where they come from. Lien waivers from each trade are what keep a finished job from becoming a title problem.
Part 2 of 4
A simple example
Your kitchen remodel finished in March. The cabinet supplier was never paid by the contractor and files a $6,500 lien in May, weeks before closing.
| What you have | What follows |
|---|---|
| Signed lien waivers from every trade | The lien is contested and usually released |
| A paid invoice to the general contractor only | The supplier's claim is real; it is paid or bonded at closing |
| No paperwork | The amount is held from your proceeds until it is settled |
You can pay the contractor in full and still owe the supplier. Lien waivers are the proof that everyone was paid.
Part 3 of 4
What people get wrong
That paying the general contractor protects you. Subcontractors and suppliers can lien the home for what the general did not pass on.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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