Michigan Mechanics Lien Form

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I believe if he is unlicensed he has no right to file a Construction Lien for work that he did and was not paid for -- in any case he must file for a lien within 90 days of the last date of work he did at the site. Additionally I strongly recommend you keep detailed notes of your interactions and photographs of the shoddy workmanship. If you need to hire a different contractor to complete and or correct the work deduct the cost to complete/correct from the remaining balance due on his contract ... if more is due he might be entitled to it but . . . the devil is in the details. If he tries anything you can bond over the lien and still sell the house AND make a complaint to the State of Michigan for him being an unlicensed contractor which may open an investigation against him (and ultimately cost him his license if he wants to renew it)

In Michigan you should provide a PARTIAL waiver of lien to the customer to account for the partial payment you received after. The attorney is WRONG .. your lien is still valid up to $16K. Hire an attorney.