looked at a property a guy had half finished and ran out of money. didn’t buy it but got me thinking… if someone buys a partially done property like this, could an unpaid contractor come back in a month and put a lien on a house if it had been sold to someone else?
Mechanics lien
The answer is YES. A person who did work or supplied materials for a property that wasn’t paid can file a mechanic’s lien, even if he was a subcontractor or supplier. Each state has slightly different rules on this, but basically someone who wasn’t paid has about 60-90 days after last work or materials supplied to file a mechanic’s lien against the property. The lien, however, is not good forever. The contractor or supplier must file suit or the lien expires, usually in about a year (depending on the state). To get rid of the lien, you must sue in court and get a Judge to decide the issue. If the seller gives you a warranty deed and the lien shows up after closing, you can sue the seller for breach of warranty. This is why it is common for a title company to ask for an affidavit from the seller attesting that no work was done that was not paid for.
The reasoning given by William states the obvious.
P.S. My answer is yes