Why AI Can’t Build a Safe Contract for You
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January 22, 2026
If you’re a contractor, supplier, or laborer, getting paid for your work is a big deal. But what happens if the property owner doesn’t pay you? That’s where a contractor’s lien comes in. A contractor’s lien is a legal tool that helps protect your right to payment by giving you a claim against the property you worked on. In this article, we’ll break down what a contractor’s lien is, how it works, and why it’s such a powerful way to make sure you get paid.
Before diving into how contractor’s liens work, it’s important to know who has the right to file one. Generally, anyone who contributes labor, materials, or services to improve a property may be entitled to file a lien. This includes:
The key requirement is that your work or materials must have directly improved the property. Each state has specific rules about who qualifies, so it’s important to verify your rights under your state’s lien laws.
To understand how a contractor’s lien works, it helps to know the difference between two types of debt: secured and unsecured.
Unsecured debt isn’t tied to any specific property. A good example is credit card debt. Let’s say you have a Home Depot credit card and stop making payments. Home Depot can’t just take your stuff to get their money back. Instead, they have to sue you, get a court judgment, and then try to collect from your assets, like your bank account or wages. It’s a long process, and there’s no guarantee they’ll get paid.
Secured debt, on the other hand, is tied to a specific property. A mortgage is a great example. When you take out a mortgage to buy a house, the bank has a legal claim to the house. If you don’t pay your mortgage, the bank can foreclose, sell the house, and use the money to pay off the loan. The bank doesn’t have to chase you down—they already have a claim on the property.
| Feature | Unsecured Debt (Credit Card) | Secured Debt (Mortgage/Lien) |
| Tied to Property? | No | Yes |
| Collection Process | Sue → Get judgment → Try to collect from assets | Foreclose on the specific property |
| Risk to Creditor | High – may not recover payment | Lower – property serves as collateral |
| Example | Credit card debt, medical bills | Mortgage, car loan, contractor’s lien |
| Legal Remedy | Lawsuit and judgment collection | Foreclosure sale of property |
A contractor’s lien transforms your unsecured debt (unpaid invoice) into secured debt (claim against the property), giving you significantly more power to collect payment.
Contractor’s liens have been around for a long time, and they actually started with Thomas Jefferson during the early days of the United States. Here’s the story.
Back in the late 1700s, the U.S. government was building the Capitol in Washington, D.C. It was a huge project, and Thomas Jefferson, who was Secretary of State at the time, was in charge of getting it done. But there was a problem: contractors didn’t want to take the job. They were worried they wouldn’t get paid because the government was new, and money was tight.
To solve this, Jefferson came up with a clever idea. He told the contractors that if they didn’t get paid, they could file a claim, or lien, against the property they worked on. This meant they would have a legal right to the property until they were paid. In other words, the property itself became their backup plan for getting their money.
This promise gave contractors the confidence to take on the project, and the Capitol got built. Jefferson’s idea became the foundation for what we now call contractor’s liens. The first official lien law was passed in Maryland in 1791, and over time, other states followed suit. Today, contractor’s liens are a key part of construction law, making sure people get paid for their hard work.
A contractor’s lien works like a mortgage. If you’re a contractor and don’t get paid, you can file a lien against the property you worked on. This gives you a legal claim to the property, which means the owner can’t sell or refinance it until they pay you.
Here’s how it usually works:
Before you can file a lien, you need to send certain notices to the property owner. These notices let them know you’re serious about getting paid.
A preliminary notice (also called a “pre-lien notice,” “notice to owner,” or “20-day preliminary notice” in some states) is a document you send at the beginning of a project. It states who you are, what work you’re doing, and that you have the right to file a lien if you’re not paid.
Requirements vary by state, but generally:
Timing is crucial and varies by state. The deadlines below reflect only a few examples—not a complete list. Every state has its own notice requirements. For example:
You typically must send preliminary notices to:
In many states, failing to send a preliminary notice means you lose your right to file a lien entirely, even if you performed thousands of dollars of work perfectly. This is why preliminary notices are so critical.
If you still don’t get paid, you can file a lien. This has to be done within a specific time frame, which depends on the state you’re in.
If the owner still doesn’t pay, you can sue them to foreclose on the lien. This means forcing the sale of the property to get your money.
Now, actually selling the property doesn’t happen very often. Just having a lien on the property is usually enough to get the owner to pay, because it makes it hard for them to sell or refinance until the lien is cleared.
When multiple parties have claims against a property, lien priority determines the order in which creditors are paid if the property is sold. Understanding priority is crucial because it affects whether you’ll actually recover your money through foreclosure.
In most states, lien priority follows the rule of “first in time, first in right.” This means the first recorded claim gets paid first from the proceeds of a foreclosure sale.
Mechanics’ liens have a special priority status in many states. Rather than dating from when the lien is filed, a mechanics lien often relates back to the date when work first began on the project or when the first material was delivered. This means your lien might have priority over claims filed earlier if they came after construction started.
If a property sells for $300,000 at foreclosure, but there’s a $250,000 mortgage with priority over your $75,000 lien, you’ll only receive $50,000 ($300,000 – $250,000). Understanding priority helps you assess whether foreclosure is worth pursuing or whether you should negotiate a settlement instead.
Filing a lien gives you a lot of power as a contractor. Once the lien is in place, it creates a big problem for the property owner. They can’t sell the property, refinance it, or switch from
construction financing to permanent financing until the lien is resolved. This gives you strong leverage to get paid.
Here’s the catch: liens don’t last forever. In most states, a lien is only valid for 1 to 2 years. If you’re not paid before the lien expires, you’ll need to take the next step and file a lawsuit to foreclose on the lien. This means asking the court to force the sale of the property so you can get your money. But again, this rarely happens—most property owners will pay up before it gets to that point.
A contractor’s lien is an amazing tool, but it only works if you follow the rules. You have to send the right notices, file the lien on time, and follow the specific steps required in your state. If you mess up any part of the process, your lien could be invalid, and you might lose your chance to get paid.
Understanding the financial investment required to pursue a lien is essential for deciding whether it’s the right remedy for your situation.
If the property owner doesn’t pay after you file the lien, you’ll need to file a lawsuit to foreclose. This is where costs escalate:
Consider these factors:
Before filing a lien or pursuing foreclosure, ask yourself:
Even experienced contractors make mistakes that can cost them their lien rights. Here are the most common errors and how to avoid them:
The Bottom Line: Lien laws are technical and unforgiving. A single mistake can cost you tens of thousands of dollars in unpaid invoices. When in doubt, consult with a construction law attorney before filing.
A contractor’s lien is one of the best tools you have to make sure you get paid for your work. It gives you a legal claim to the property you improved, which can be a powerful way to get the property owner’s attention. But because it’s such a strong remedy, you have to follow the rules carefully. If you’re dealing with a payment issue or have questions about filing a lien, don’t hesitate to reach out to The Cromeens Law Firm. We’re here to help you protect your hard work and get the payment you deserve.
If you’re not sure how to file a lien or want to make sure you’re doing it right, call 713-715-7334. We can help you figure out what’s required for your specific project and make sure your rights are protected.
Karalynn Cromeens is the Owner and Managing Partner of The Cromeens Law Firm, PLLC, with over 17 years of experience in construction, real estate, and business law. A published author and passionate advocate for contractors, she has dedicated her career to protecting the businesses her clients have built. Karalynn is on a mission to educate subcontractors on their legal rights, which inspired her books Quit Getting Screwed and Quit Getting Stiffed, as well as her podcast and The Subcontractor Institute.
