Can a contractor put a lien on my New Hampshire home?

Who can claim a lien?

RSA 447:2 covers labor, materials and professional design services for a building, well or similar structure, when the work is under a contract with the owner. Design services include licensed architects, engineers and land surveyors, permitted septic designers, and certified wetland and soil scientists.

Under RSA 447:5 and 447:6, a subcontractor or supplier who works for your contractor can also claim a lien if they give you written notice. Their lien is limited to what you still owe, or will owe, your contractor at that point.

How long does a lien last?

Under RSA 447:9, the lien lasts 120 days after the work is done or the materials are delivered, unless it's paid first. To keep it, the claimant must attach the property through a court action while the lien is still in effect (RSA 447:10). RSA 447:9 also gives the lien priority over earlier claims other than taxes, with some exceptions in the law.

How do I protect myself?

• Use a written contract that names the price, the work and the payment schedule.
• Keep any written lien notices from subcontractors or suppliers, and don't pay your contractor ahead of the work.
• Before the final payment, ask for written proof that subcontractors and suppliers have been paid.
• Keep receipts and records; they also help with your tax basis.

The homestead right doesn't protect against liens for work done on the home (RSA 480:4). For a dispute, talk with a New Hampshire attorney.

Does a lien affect a refinance or sale?

Yes. A recorded attachment shows up in the title search, and lenders need clear title, so it usually has to be paid or released before a refinance or sale closes. With a renovation loan or a construction loan, the lender pays the contractor in draws as work is finished. Buying a newly built home? See buying new construction.