Understanding Mechanics Liens and How to Protect Yourself

What Are Mechanics Liens?

Mechanics liens give contractors, subcontractors, and suppliers a security interest in your property for unpaid work or materials.

How Liens Work

1. Contractor/supplier provides work or materials
2. If not paid, they file a lien against your property
3. The lien must be resolved before you can sell or refinance
4. They can foreclose if the lien isn't satisfied

Protecting Yourself

Preliminary Notices

Contractors must send preliminary notices to preserve lien rights. These are warnings, not liens themselves.

Conditional Lien Waivers

Get conditional waivers with each payment. They become effective when the check clears.

Unconditional Waivers

Get unconditional waivers after payments are confirmed.

Joint Checks

For large subcontractor payments, consider joint checks to ensure they get paid.

Bidroom's Protection

Our escrow system and lien waiver tracking helps protect owners from mechanics lien risks.