Not legal advice. This page explains Wisconsin's rules in plain English, with each one linked to the law or agency page it comes from. For a dispute over real money, talk to a lawyer; the State Bar's Lawyer Referral Service is (800) 362-9082.(DATCP)
How a Lien Happens
- Who can claim one. Anyone who does work, supplies materials, or provides plans for improving land, and follows the notice rules: the prime contractor, subcontractors, suppliers, laborers and designers. Improvements include remodeling, repairs, landscaping and demolition.(Wis. Stat. 779.01)
- The usual case. You pay your contractor; the contractor doesn't pay the lumberyard; the lumberyard sends you a notice of intent to file a lien.(DATCP) A recorded lien usually means you can't sell the home until the debt is paid.(DATCP)
- The warning in your contract. A prime contractor that uses subcontractors or suppliers must put the state's lien notice, in bold type, in the written contract and give you a copy. With no written contract, it must serve the notice within 10 days of starting.(Wis. Stat. 779.02) The notice tells you to expect notices from subs and suppliers and to give a copy to your mortgage lender, if any.(Wis. Stat. 779.02)
- The sub's notice. A subcontractor or supplier keeps lien rights only if it serves you a written notice within 60 days of first working or delivering. A late notice covers only work or materials after you receive it.(Wis. Stat. 779.02)
- Exceptions. Anyone you hire directly doesn't need to send the 60-day notice, and neither do laborers employed by a contractor.(Wis. Stat. 779.02) If you act as your own general contractor, the law treats you as the prime contractor.(Wis. Stat. 779.01)
- A prime that skips the notice loses its own lien rights, unless it paid all its subs and suppliers on time and none of them filed notice.(Wis. Stat. 779.02)
The Lien Timeline
| Step | Deadline |
|---|---|
| Prime contractor's lien notice | In the written contract, or within 10 days after first doing work or delivering materials if there's no written contract(Wis. Stat. 779.02) |
| Subcontractor or supplier notice | Within 60 days after first doing work or delivering materials, 2 signed copies served on you(Wis. Stat. 779.02) |
| Notice of intent to file a lien | At least 30 days before the claim is filed(Wis. Stat. 779.06) |
| Lien claim filed | Within 6 months after the claimant last did work or delivered materials, with the clerk of circuit court where the land is(Wis. Stat. 779.06) |
| Copy of filed claim served on you | Within 30 days after filing(Wis. Stat. 779.06) |
| Foreclosure suit started | Within 2 years after the claim is filed, or the lien ends(Wis. Stat. 779.06) |
These notice rules are for homes and small projects. They don't apply to projects adding more than 4 dwelling units or to nonresidential work.(Wis. Stat. 779.02)
Lien Waivers
- What one does. A signed lien waiver gives up the signer's lien rights, binding whether or not the signer was actually paid. It covers all the signer's work on the job unless it says it's partial.(Wis. Stat. 779.05) It gives up lien rights only, not the signer's right to be paid under its contract.(Wis. Stat. 779.05)
- Only the claimant can waive. An agreement between you and your contractor can't cancel a subcontractor's lien rights.(Wis. Stat. 779.03)
- Your right to them. Before you sign, a home improvement seller must give you a written "Notice of Consumer's Right to Receive Lien Waivers." If you ask, it must give you written waivers from every contractor, subcontractor and supplier for the work done so far, at each payment, unless you ask for them only at final payment.(ATCP 110.025)
- When they'll sign. A contractor or supplier may refuse to sign a waiver until it's paid for the work it covers.(Wis. Stat. 779.05) A contract clause requiring anyone to waive lien rights before being paid is void.(Wis. Stat. 779.135)
Protecting Yourself
- Read the lien notice in your contract and keep every 60-day notice you receive; those name the subs and suppliers on your job.(Wis. Stat. 779.02)
- Ask for lien waivers at each payment, from the contractor and everyone on its notices.(ATCP 110.025) Madison suggests making waivers a condition of final payment in the contract.(City of Madison)
- Pay for materials directly with the supplier if you can; DATCP says that avoids some problems.(DATCP)
- If a sub files a lien, the prime contractor must defend it at its own expense, and you may hold back from the prime the lien amount plus enough to cover costs.(Wis. Stat. 779.02)
If a Lien Is Filed
- Where to look. Lien claims are entered in the clerk of circuit court's judgment and lien docket, under the owner's name.(Wis. Stat. 779.07) Construction liens are their own circuit court case type.(Wisconsin Courts) In Dane County, construction lien files are kept at the Clerk of Courts Record Center, Courthouse Room 1002, and are open for inspection at no cost; Dane County says to find the case number on WCCA, the state's court records search.(Dane County Clerk of Courts)
- Clearing title while you dispute it. You can file a bond or deposit money equal to 125% of the claim with the clerk, which releases the lien from the property.(Wis. Stat. 779.08)
- Once paid. A claimant paid in full who refuses a requested satisfaction of the lien owes half the amount it claimed.(Wis. Stat. 779.13)
- Bad liens. DATCP says liens for work you didn't authorize, or where the contractor didn't perform, aren't enforceable, and knowingly filing a false lien carries $1,000 in punitive damages plus actual damages.(DATCP)
- Foreclosure. If the claimant sues within 2 years and wins, the court can order your interest in the property sold to pay the lien.(Wis. Stat. 779.06)(Wis. Stat. 779.10) This is the point to talk to a lawyer.
For deeds and other recorded documents on your property, see deeds and records.
Theft by Contractor
Money you pay a contractor for your job is held in trust for the workers and suppliers on that job until they're paid. Using it for anything else first, except amounts in a genuine dispute, is theft under the general theft statute. When the contractor is a corporation or LLC, the officers or agents responsible can be charged too.(Wis. Stat. 779.02) Criminal charges require proof of intent to defraud.(Wis. Stat. 779.02, annotation) Contractor complaints covers where to report it.
Questions
How long does a contractor have to file a lien in Wisconsin?
Six months after the last day it did work or delivered materials. It must first serve the owner a notice of intent to file at least 30 days before filing, and file with the clerk of circuit court in the county where the property is.
Can a subcontractor put a lien on my house if I paid the contractor?
Yes, if the subcontractor or supplier gave you a written notice within 60 days of first working on or supplying the job and wasn't paid. That's why lien waivers matter: a signed waiver from each sub and supplier gives up their lien rights for the work it covers.
What is a lien waiver in Wisconsin?
A signed writing in which a contractor, subcontractor or supplier gives up its lien rights. It covers all of the signer's work on the job unless it says it's partial, and it gives up lien rights only, not contract rights. Wisconsin's home improvement rule lets you ask for waivers at each payment.
How do I remove a lien from my house in Wisconsin?
The claimant must sign a satisfaction once paid; refusing a requested satisfaction makes it owe half the amount claimed. To clear a disputed lien while it's fought out, an owner can file a bond or deposit 125% of the claim with the clerk of court. A lien also ends if no foreclosure suit is started within 2 years of filing.