Mechanic's lien

Definition

A builder's claim against property for work nobody paid them for.

Why It Matters

Nothing about it is stopped by the purchase agreement, which is the part buyers get wrong: the claim attaches to the PROPERTY and follows it to whoever owns it next, so an indemnity from the seller is a promise to reimburse you after you have already paid. The window to file runs months past the last day of work, so a search that comes back clean at closing is not proof that one is not coming. Ask what construction has been done in the past year, get lien waivers from every contractor on it, and hold back enough to cover the window.

In numbers: A roofer owed $40,000 on work finished before closing can file against the building, and the claim outranks a buyer who paid the seller in full for a clean title.