Can you put a lien on an unlicensed contractor who is paid in full and doesn't finish the job?

Answer 1

Legally, yes. Whether or not his license status would create problems of a different nature would depend on the laws of the state where he does business. Of course if he were getting paid "off the books" he probably would want to consider the consequences of taking an oath in a court of law before filing a lawsuit. A unlicensed illegal contractor cannot sue you since he or she is illegal. Something illegal cannot be the subject of a lawsuit. California Business & Professions Code Section 7031 allows you to recover all compensation paid to an unlicensed contractor for work done during four years prior to the filing of law suit. Make sure you file before the four year anniversary of the illegal work. Answer It is true that an unlicensed contractor cannot sue to recover "compensation." However, an unlicensed contractor who is considered a "developer of mass produced housing subject to claims for strict liability" could sue a subcontractor for equitable indemnity type claims. Furthermore, there has been no case interpretation on whether or not you can recover monies paid to an unlicensed contract when you knew at the time of entering into the contract that the contractor was unlicensed. At least one noted construction law attorney has opined that a homeowner might be prevented from recovering the compensation in such cases.

Answer 2

Most states do not allow an unlicensed contractor to lien property. Some states however, do allow a lien if someone is operating under the "handyman" laws so don't assume either way. You'll need to check your state laws.

Answer 3

No. Liens are filed only by persons who were not paid for goods or services they provided. For a quick, inexpensive, and informal way to get justice from the deadbeat contractor without an attorney or any legal knowledge, I suggest small claims court. A small claims court judgment will be a judgment lien against the crook, and can be enforced through a variety of means, including requiring him to come to court and answer questions about his property (judgment debtor examination.) If the amount you are owed exceeds the small claims jurisdictional limit, see an attorney (look in the phonebook for one who gives "free consultations.)

Answer 4

No. Unlicensed contractors are technically illegal, so the state does not allow liens to be filed.