Can a builder in Ohio skip lien waivers from subcontractors?

Full question:

I have contracted with a Builder in Ohio to build a house. He claims he does not get waiver of liens from his subcontractors. The lender only does a mechanic's lien search before each draw and does not require a waiver of lien from the builder. Is this right? I do not want to get stuck with a subcontractors lien against my new home.

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

Answer:

In Ohio, contractors, subcontractors, or material suppliers can file a mechanic's lien against your property if they haven’t been paid for their work or materials. This lien is filed through an Affidavit of Mechanic's Lien. However, a lien cannot be filed if the claimant has been paid in full before you receive a copy of their lien affidavit (O.R.C. 1311.01(B)).

For residential projects, the lien must be filed within sixty days of the last work performed. If the project is not residential, the timeframe extends to seventy-five days. For oil and gas leases, the period is one hundred twenty days (O.R.C. 1311.06(B)).

To protect yourself from subcontractor liens, you can file an affidavit of completion with the county clerk. This affidavit should include your name, the contractor's name, a description of the property, details of the improvements, a statement of completion, and a notice that claims must be filed within thirty days of completion.

While lien waivers are not legally required, they are a common practice to protect against future liens. A lien waiver confirms that subcontractors relinquish their right to file a lien for the amount paid. There are different types of lien waivers:

• Interim Lien Waiver: Used for progress payments, waiving rights only for the amount paid.
• Unconditional Lien Waiver: Used after final payment, fully releasing future lien rights.
• Conditional Lien Waiver: Used when submitting an invoice, contingent upon receipt of payment.

It's advisable to get lien waivers from subcontractors to ensure no future claims arise against your property. This helps you avoid potential disputes and protects your investment.