I just had windows and siding put on my house . They still have to put in a door and shutters. They want to sign off that it is completed so they can get paid, I said I would sign off upon the completion. They told me that they are going to put a lien on my house . Can they do this ?
Unfortunately, any contractor can fill out a construction lien form and walk into the local register of deeds with $30 and record a construction lien even if they haven't completed their work. That's not how the lien law is supposed to work, however, at least not in Michigan. A construction lien should be recorded when the work is completed, but the contractor has not been paid.
If the contractor completes its work, and you make the final payment, the contractor is required to discharge any lien it may have recorded prior to that time. When you make the final payment, you should also have the contractor sign a Full Unconditional Waiver of Lien, a form LevelSet can provide you, and record a Discharge of Lien if they recorded one.