Selling a House With a Contractor’s (Mechanic’s) Lien in GA

A contractor put a lien on your house — here is how it works and how it clears.

A renovation that went sideways, a dispute over a final invoice, a subcontractor you did not even hire directly — and now there is a contractor's lien on your house. In Georgia this is a “claim of lien on real property,” and while it is a real cloud on your title, it runs on strict deadlines and is routinely cleared at closing. Here is how the mechanic's lien works and how a sale resolves it.

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How a Contractor Files a Lien — the 90-Day Rule

A contractor, subcontractor, or supplier who improved your property and was not paid can file a Claim of Lien on Real Property with the clerk of superior court. Under O.C.G.A. 44-14-361.1 the claim must be filed within 90 days of the last date they furnished labor or materials, and it must include a statement about when the lien expires and a notice telling you that you have the right to contest it — if those are missing, the lien is invalid. Once it is filed and indexed against your property, it is a cloud on the title that has to be resolved before clear title can pass to a buyer.

Georgia mechanics lien payoff and release of claim of lien handled at closing

The Deadlines That Decide a Mechanic's Lien

Filing a claim is only the first step. To actually enforce the lien, the claimant must file a lawsuit within 365 days of filing the claim of lien, and record a Notice of Commencement of Lien Action within 30 days of filing that suit, under O.C.G.A. 44-14-361.1. If they miss those deadlines, the lien is no longer enforceable.

Priority matters too: in Georgia a mechanic's lien is inferior to tax liens but superior to most other liens, and as between contractors the liens generally rank by the date filed. Because priority is fact-specific, the closing attorney works out the order of payment when more than one claim exists.

How the Lien Is Cleared When You Sell

A valid claim of lien is paid from your sale proceeds at closing, and the closing attorney records the release so clear title passes to the buyer. If a lien is disputed, or if the claimant let the 365-day enforcement deadline pass, the attorney addresses it as part of clearing title rather than simply paying it. Because POH Group LLC buys as-is for cash with no lender, there is no financing contingency to derail the sale — we work the payoff or release into the closing and move on your timeline.

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Get a No-Obligation Cash Offer

A contractor's lien does not have to freeze your sale. Tell us the address and what the title search showed — we will make a written, as-is cash offer and work with the closing attorney to pay or clear the lien at closing. No repairs, no commissions, no money up front.

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