Understanding Mechanic's Liens

A mechanic's lien (sometimes called a construction lien or materialman's lien) is a security interest filed against your property by someone in the construction chain who has performed work or supplied materials but has not been paid. The lien attaches to the property title, which means you cannot refinance or sell the property until the lien is cleared.

Liens are a state-specific creature. Each state has its own filing deadlines, notice requirements, and enforcement procedures. The general principle is the same nationwide: people who improve your property have a legal claim against the property to recover unpaid amounts.

Any party in the construction chain can typically file a lien if unpaid. That includes the general contractor, subcontractors, suppliers (lumber yards, tile suppliers, fixture vendors), equipment rental companies, and in some states, design professionals (architects, engineers).

The scary part is that a sub or supplier can file even if you have paid the general contractor in full. If the GC pocketed the money instead of paying their subs, the subs file against your property because that is where the lien attaches under state law. This is why lien waivers exist.

Most states require a lien to be filed within 60 to 120 days of the last day work was performed or materials were delivered. A few examples (current as of 2026, but always verify with current state law before relying on these):

California: 90 days for contractors, 30 days after notice of completion if recorded. Texas: third month after the month work was performed for residential. Florida: 90 days from last furnishing. New York: 8 months for single-family, 4 months for commercial. Colorado: 4 months from last work, 2 months for laborers.

Many states also require a preliminary notice (sometimes called a 20-day notice) within a fixed period after starting work, which is a prerequisite for later lien filing.

A lien clouds the title to your property. Practical consequences include being unable to sell the property until the lien is released, being unable to refinance the mortgage, and in extreme cases, the lien holder can force a foreclosure sale to recover the unpaid amount.

Most liens get resolved through negotiation or payment because the lien holder also wants the dispute resolved. But the leverage is meaningful: a $4,000 unpaid sub can effectively freeze the value of a $600,000 home.

A conditional lien waiver is a written acknowledgment from a contractor, sub, or supplier that they will release any lien rights for the work covered by a specific draw, conditional on the draw actually being paid.

The homeowner collects a conditional waiver from each party (the GC plus all subs and suppliers active in the period) before each draw is released. Once payment clears, the conditional waiver becomes effective. The next draw collects fresh waivers, and so on through the project. This is the standard pattern for keeping the project lien-free.

First, verify the lien is valid. Common defenses include filing past the statutory deadline, missing preliminary notice, work that was never performed, or amount that exceeds the actual unpaid balance. An attorney letter raising one of these defenses often resolves the lien without further escalation.

Second, contact the lien holder. Most disputes that result in liens are payment communication breakdowns, not actual fraud. A direct conversation can produce a resolution faster than litigation. If the lien is valid and the amount is right, paying it and getting a release is usually the cleanest path.