What is a mechanic's lien?

The mechanic's lien is one of the oldest remedies in US property law — it dates to the first US Congress and was championed by Thomas Jefferson. The concept is straightforward: people who put labor or materials into your property deserve payment, and if they don't get paid, they can claim against the property itself.

How it works:

1. Preliminary notice — in most states, a subcontractor or supplier must send the homeowner a preliminary notice within a specified window after first providing labor or materials. California requires a 20-day preliminary notice (CCP §8200). Oregon requires notice within 8 business days (ORS 87.021). Washington requires notice within 10 days after start (RCW 60.04.031). If a sub fails to send this notice, they lose lien rights.

1. If not paid — the unpaid party records a mechanic's lien with the county recorder, typically within 60-90 days after completion of the work. In California that's 90 days after completion or cessation of work (CCP §8410).

1. Lien foreclosure — the lienholder must file a foreclosure lawsuit within a specific window (90 days from lien recording in California per CCP §8460). Failure to file within the window voids the lien.

1. Effect on homeowner — even before foreclosure, a recorded lien prevents clean sale or refinance. Title companies won't insure with an open mechanic's lien. Homeowner must either pay, post a bond to release the lien, or contest the lien in court.

The nightmare scenario:

• You pay your general contractor in full.
• GC pockets the money and doesn't pay subs.
• Subs (all of whom sent preliminary notices you ignored) file liens.
• You now owe again — because the liens attach to your property, not to the GC.

How homeowners prevent this:

1. Read and save every preliminary notice — they're mailed to the property owner by law.
2. Require unconditional lien waivers from every sub and supplier before releasing each draw to your GC. The GC collects these and delivers them to you. Without waivers, don't release the draw.
3. Consider a joint check — make the payment out to both the GC and the sub for larger work packages.
4. Use a construction escrow on larger projects — neutral third party releases funds against waiver collection.
5. After completion, confirm with each sub that they were paid.

AskBaily's contract template for matched homeowners includes sub lien-waiver collection as a draw condition.