Can a Contractor File a Lien on Your Property in Michigan?

Many property owners are surprised to find out that a contractor, subcontractor, or supplier may be able to place a lien on their property if they are not paid for work or materials tied to a construction project.

In Michigan, construction liens are one of the most powerful tools available in payment disputes. Whether you are a property owner, contractor, or supplier, understanding how lien rights work can help you avoid severe financial and legal issues down the road.

What Is a Construction Lien?

A construction lien is a legal claim against a property for unpaid labor, services, or materials provided during a project.

Under Michigan’s Construction Lien Act, parties may have the right to file a lien if specific legal requirements and deadlines are followed correctly. This may include:

• General contractors

• Subcontractors

• Material suppliers

Michigan lien laws are exceptionally technical, and courts tend to strictly enforce deadlines and filing requirements. Missing a deadline or making an error in the paperwork can significantly affect a party’s ability to recover payment.

When Do Liens Usually Happen?

Liens often arise after payment disputes, which can happen during or after a construction project. Common situations include:

• Unpaid invoices

• Disputes regarding completed work

• Disagreements regarding change orders

• Delayed payments between contractors

For instance, a subcontractor may finish work on schedule, but have yet to receive payment from the contractor above them. In such a situation, filing a lien may become necessary to secure the money owed.

The Importance of Construction Liens

For contractors and suppliers, liens can create leverage when trying to collect unpaid balances.

However, for property owners, a lien can create major complications, such as:

• Difficulty selling or refinancing the property

• Title complications

• Additional legal costs

• Litigation related to enforcing or removing the lien

Because liens directly affect the property itself, these disputes can escalate quickly if not addressed promptly.

Documentation Matters

In many construction disputes, documentation becomes a crucial factor.

Helpful records include:

• Written contracts

• Invoices and payment histories

• Change orders

• Emails and communications regarding the project

• Proof of completed work

Clear documentation can strengthen a party’s position and may help resolve disputes before formal legal action becomes necessary.

Acting Early Can Protect Your Interests

Construction lien disputes are extremely time-sensitive. Waiting too long to respond or take action can limit legal options and create additional financial risk.

Whether you are attempting to recover payment or responding to a lien claim against your property, taking the right steps early can make a significant difference in the outcome.

If you are dealing with a construction dispute, delayed payment, or lien issue in Michigan, contact Sadecki & Associates at 248.328.1300 to discuss your situation.