In Ohio, a mechanic’s lien allows a subcontractor or contractor who has not been paid for their work or materials to file a lien against the property. It allows them to state that they have done the work but haven’t been paid and it instantly preserves their right to get paid.
Eventually, they can foreclose on that lien if they choose.
Q: If a contractor puts a mechanic’s lien on a piece of property for unpaid work performed, how does the contractor get their money out of the house?
They would foreclose on the property just as you would a mortgaged property. But it’s important to mention that mechanic’s lien law is a very complicated law, specific to each state.
The state of Ohio has a very specific statute and if you don’t follow it or the contractors, subcontractor, or anyone else doesn’t follow that law precisely, their lien is not good. Their mechanic’s lien could actually be a cloud on the title which is what the owner would file against them.
There are very complicated provisions in the law and procedures that various parties need to go through. As an example of the law’s complexity, there’s a difference between the types of property. A spec house (a speculative home for sale, i.e. a home built for sale with no buyer in mind) doesn’t have an owner or buyer. It’s treated like commercial property and the time for which the contractor or subcontractor, etc. have to put a lien on the property is very different from property where a buyer of a residential home is involved. There is a whole set of laws for residential property that are involved that shorten up that time period and give the buyer or the owner consumer protection.