A mechanic’s lien is a security interest in the title to property granted to those who have supplied labor or materials that repair, remodel or build your home. If any workmen are not paid for the services or materials they have provided on your home they can place a lien on the home, and if this lien is not satisfied, they can petition for the sale of your home to satisfy the lien.

This result can occur even when a homeowner has paid in full for the work, but the payee contractor did not pay his subcontractors. Unlike other security interests, in most states, mechanic's liens are given to contractors and material suppliers who may or may not have a direct contractual agreement with the homeowner. In fact in most cases, the homeowner contracts only with a general contractor. The general contractor, in turn, hires subcontractors (subs) and suppliers.  These subs and suppliers are entitled to liens on the owner's property to secure their payment from the general contractor. If the general contractor doesn’t pay, they can require payment from the homeowner (who may have already paid the general contractor). The right to record a mechanics lien is granted by state statute.  The best way to avoid this situation is to hire only reputable firms and obtain a mechanics' lien release promptly after payment.

The homeowner may have a valid defense against paying the lien if the proper procedure for establishing the lien was not followed. Mechanics' liens may be recorded by anyone who has provided labor, services, or materials to a job site, but they are required to strictly adhere to a well-established procedure in order to create a valid mechanics' lien.

Since lien law is very complex, it is advisable to consult an attorney if you believe a mechanics' lien has been recorded against your property.