Construction and Mechanics liens are remedies created
by statute to ensure payment to contractors,
subcontractors, tradesmen, laborers or material
suppliers who have improved the property of others.
Two of the most common types of liens are home
improvement liens and motor vehicle repair liens. These
liens provide home improvement contractors with a
security interest in the homeowner’s property, and auto
repair shops with a security interest in the vehicle
owner’s vehicle.
Lien waivers prevent contractors from trying to collect
money from homeowners who have already paid.
How liens work
Usually, having a lien recorded against your home
means you cannot sell it until the debt is paid. A lien on
a vehicle in the possession of a repair shop means you
will not be able to have your vehicle back until the debt
is paid.
Get lien waivers
Lien waivers are important for consumers because they
prevent contractors, subcontractors and material
suppliers from trying to collect money from
homeowners who have already paid.
Any time up to making the final payment on a home
improvement contract, consumers can get a lien waiver
from the prime contractor and lien waivers from each
subcontractor and material supplier. If payment is made
in installments, consumers can request lien waivers for
the proportionate amount of the contract covered by
each partial payment.
Getting lien waivers will prevent a subcontractor or
material supplier from putting a lien on your home if
the contractor does not pay the bills.
Wisconsin law, Wis. Admin. Code s. ATCP 110.025,
requires that contractors inform consumers of their
right to receive lien waivers on a home improvement
contract. Consumers can request a lien waiver even if
one is not offered. Consumers can specify that the lien
waiver request only applies to the final payment.
Lien waivers do not waive any contractual rights for the
property owner or contractor.
Notice of lien rights (Wis. Stat. §
779.02(2))
Prime contractors for home improvement must provide
written notice of lien rights to the consumer with the
written contract. If there is no written contract, the
prime contractor must prepare and serve the notice
within 10 days after the first labor, services, materials,
plans, or specifications are performed, furnished, or
procured by the prime contractor for the improvement.
Subcontractors for home improvements who do not
directly contract with the homeowners must provide
written notice of lien rights to the homeowner within
60 days of when the first work is done. For
subcontractors, a late notice waives lien rights for work
already performed, but not subsequent work.
Notice of home lien claim (Wis. Stat. §
779.06(1))
Lien claims must be filed within 6 months of the last
work performed on a home or they are waived. All lien
Photo: Flickr-Lendingmemo.com
Liens
claimants must provide written notice to the home
owners at least 30 days prior to filing a claim. The notice
must describe the nature of the lien claim, amount
owed, and a description of the property and the
improvements it relates to. Failure to provide timely
notice to the consumer will waive all lien claims.
Lien claimants have 2 years from the time the lien is
filed to file a summons and complaint to enforce the
lien claim.
Unauthorized work
Liens for unauthorized improvements are never
enforceable. Liens are not enforceable if the contractor
defaults or fails to perform under the terms of the
contract. Auto repair shops may not refuse to return a
vehicle because the owner has refused to pay for
unauthorized repairs or repair charges that exceed the
shop’s repair estimate (Wis. Admin. Code ATCP
132.09(3)).
Slander of title (Wis. Stat. § 706.13)
It is against the law for any person to record or file a
lien against real or personal property knowing some or
all of its contents to be false or frivolous, and is liable to
any owner of the impaired property for punitive
damages of $1,000 plus any actual damages caused.
Protect yourself
To file a complaint, visit our website or contact the
Bureau of Consumer Protection.
For more information or to file a complaint,
visit our website or contact:
Wisconsin Department of Agriculture,
Trade and Consumer Protection
Bureau of Consumer Protection
2811 Agriculture Drive, PO Box 8911
Madison, WI 53718-8911
Email: [email protected]
Website: datcp.wi.gov
PHONE: (800) 422-7128 TTY: (608) 224-5058
Liens262 (rev 10/23)
