ABA Family Legal Guide

Home Ownership

Remodeling

Troubleshooting the Project

How can I prevent a mechanic's lien from being filed?

It is possible to add a clause to the contract stating that the contractor agrees to give up his or her lien rights, but the contractor may not agree to such a clause, and in some states it is not valid. Moreover, even with a contractor's waiver, any subcontractor or supplier who is not paid for work or materials by your contractor can file a lien against your home. Unless your job is covered by a performance bond, or your state has some sort of fund to protect homeowners from paying twice when the contractor doesn't pay subcontractors or laborers, your chief protection against a lien is holding back final payment until all work has been properly completed to your satisfaction and your contractor supplies proof in writing that everyone who worked on your job has been paid. A release-of-lien form is useful, because it provides places for all the subcontractors to sign. (This is one reason to have all subcontractors and suppliers named up front in your contract, so you can make sure everyone has signed off on the release-of-lien form.)