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Can a subcontractor place a lien on my property after I paid the builder?

Can a subcontractor place a lien on my property after I paid the builder?

Q: How long do construction liens last in Nebraska?

In Nebraska, construction liens typically last for three years from the date they are filed. If legal action is taken to enforce the lien within that period, it may extend the lien's validity. It's important to be aware of these timelines to protect your rights and ensure compliance with state laws.

Full question:

I own property free and clear. We have a contract with a home builder to construct a home on our property. We pay the home builder in full for the services contracted. However, the home builder defaults on his subcontractors. Can the Subcontractor put a lien on my property even though I have paid the full contract price to our home builder?

Category: Contractors
Subcategory: Construction Liens
Date: 04/07/2025
State: Ohio

Answer:

In Ohio, a subcontractor cannot enforce a lien against a homeowner if the homeowner has paid the original contractor (the home builder) in full before receiving a notice of a mechanics' lien. According to Ohio law (Ohio Rev. Code § 1311.011), if you have made full payment for the home construction contract and did so before receiving a lien affidavit, any lien filed by a subcontractor is void.

To protect yourself, you should file an affidavit with the county recorder stating that you have paid the original contractor in full. If a subcontractor files a lien after you have made full payment, that lien will be invalid unless there was fraud involved in the payment process.

If the original contractor has not been paid in full, subcontractors may claim a lien, but only up to the amount that remains unpaid to the original contractor. If a lien is filed after you've made full payment, and the subcontractor does not release it within thirty days of being notified of your payment, they may be liable for damages, including court costs and attorney fees.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What does a contractor need to put a lien on a house?

To place a lien on a house, a contractor typically needs to provide a written notice of the lien to the property owner, detailing the amount owed and the work performed. This notice must be filed with the county recorder's office. In many states, the contractor must also ensure that they have not been paid in full for their services. If the homeowner has paid the original contractor in full before receiving notice of the lien, the lien may be invalid. Always check local laws for specific requirements.

Can a lien release expire?

Yes, a lien release can expire. While the specific duration varies by state, generally, a lien release is valid until the underlying debt is paid or until a specific time frame set by law passes. If a lien is not enforced within that time, it may become void. It's important to check your state's statutes for the exact time limits regarding lien releases.

How long is a lien valid in Nebraska?

In Nebraska, a construction lien is generally valid for three years from the date it is filed. However, the lien may be extended if a lawsuit is initiated to enforce it within that time frame. It's crucial to be aware of these timelines to ensure that your rights are protected. Always consult local laws for the most accurate information.

How to fight a construction lien?

To contest a construction lien, you can file a lawsuit to challenge its validity. Gather evidence, such as proof of payment or documentation showing the work was not completed as agreed. You may also negotiate directly with the lien claimant to resolve the issue. If the lien is not valid, you can request it be removed through the court. Consulting with a legal professional can provide guidance tailored to your situation.

Can a subcontractor file a lien in Tennessee?

Yes, a subcontractor can file a lien in Tennessee if they have not been paid for their work. However, they must provide proper notice to the property owner and file the lien within a specific time frame, usually within 90 days of the last work performed. If the homeowner has paid the general contractor in full before receiving notice, the subcontractor's lien may be invalid. Always verify the latest laws for specific requirements.