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Yes. But the contractor could be sued for slander of land title, and would have to pay court costs and attorneys' fees (if you prevail in court after a lawsuit) (in WA). Since I am a construction law expert, I will lend this advise: if the work is not finished or unsatisfactory, DO NOT PAY THE CONTRACTOR ANY MORE MONEY.Instead, write him a letter describing the unfinished or shoddy work and give a certain time period (say, 10 days) to come and fix the defective workmanship. Odds are, the contractor won't do anything, in which case you're free to hire a very good contractor to finish the job. Then, the shoddy contractor may file a lien against your property (just because he can file a lien doesn't mean the lien has merit). Once the contractor has filed the lien, unless you're selling or refinancing right away, or want to "get back at" the contractor immediately, I would do nothing and wait until the contractor sued me for foreclosure of the lien (note the time period to foreclose a lien in WA is 8 months). At that time, I would retain a good construction law attorney and counterclaim for slander of title (filing a lien with no merit) and breach of contract (since you had to pay the other contractor to finish the work) with a prayer for attorneys' fees (RCW 60.08.080). In the event the time lapsed for the contractor to foreclose the lien, or if no lien is filed, you will want to see a construction law or real estate attorney to sue the contractor (look in the phone book for an attorney who will give "free consultations").

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Q: If a job performed by a contractor is poor quality and or not finished and you withhold a percentage of the payment to compensate can the contractor put a lien on your house?
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