Frequently asked questions
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A pre-lien notice (also called a preliminary notice or notice of intent to lien) is a document sent by a contractor, subcontractor, supplier, or vendor early in a project. It informs the property owner (you) and other parties (like lenders) that the sender has provided labor, materials, or services to your property and has the right to file a lien if they aren't paid. It's essentially a heads-up to protect their payment rights and encourage communication to resolve issues before escalation. Receiving a pre-lien does not mean that you are being sued.
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You're likely receiving it because a contractor, subcontractor, supplier, or vendor who worked on or supplied materials for your property hasn't been fully paid yet. They send this notice to preserve their legal right to file a lien later. In many states, sending a pre-lien is required within a specific timeframe (for example, 20–90 days after starting work) to maintain lien eligibility.
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It means the sender is asserting their potential entitlement for unpaid amounts related to your property improvement. It's a formal step to document their involvement and protect against non-payment. Receiving one signals a payment delay, but it's not a lawsuit or immediate threat to your property title. It encourages you to verify payments and ensure funds reach the right parties.
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It does NOT mean a lien has already been filed against your property. It doesn't automatically cloud your title, affect your credit, or prevent you from selling or refinancing (though it might raise questions). It's not a demand for immediate payment from you personally unless you're directly responsible. And it doesn't imply fraud or wrongdoing on anyone's part—it's a standard business practice in construction.
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Under state mechanic's lien laws, anyone who provides labor, materials, equipment, or services that improve real property (like your home or commercial building) has a legal right to file a lien if unpaid. The lien attaches to the property itself, not just the person who hired them, because the work enhances the property's value. This system exists to encourage construction by securing payment, similar to how a mortgage secures a loan.
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Timing varies by state, but generally, a lien must be filed within a deadline after the last date of work or material supply—often 30–120 days. For example, in California, it's 90 days for contractors; in Texas, it's by the 15th of the month following the third month after indebtedness. Pre-lien notices are often required first. Liens can't be filed prematurely or after the statute of limitations.
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They must verify that all pre-lien requirements have been met (if applicable), prepare a lien claim document with details such as the amount owed, property description, work dates, and involved parties, file it with the county recorder's office where the property is located, and serve notice to the owner and other interested parties (often via certified mail). This creates a public record.
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A filed lien becomes a public encumbrance on your property title, meaning it must be resolved before you can sell, refinance, or transfer the property cleanly. Title searches will reveal it, potentially delaying transactions. However, it does not evict you or seize personal assets.
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A lien release is a legal document that removes a lien once payment has been made. Always request lien releases after making payments.
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Keep copies of contracts, invoices, and receipts. Use licensed, reputable contractors. If in doubt, consult a lawyer.