I’m building or buying new construction. What should I know about mechanic’s liens?

When a home is built or substantially improved, the contractors, subcontractors, and material suppliers who are not paid can record a mechanic’s lien against the property. In Idaho these liens can relate back to when work or materials first began, which means a lien recorded after closing can still take priority based on an earlier start date. That creates risk for a buyer or lender on a newly built or recently renovated home. Title companies manage this with extended-coverage policies, lien waivers from the contractor and subcontractors, and sometimes an indemnity or disbursement of construction funds through escrow so suppliers are paid as the work progresses. If you are buying new construction or financing a build, ask the title company how mechanic’s-lien risk is being covered and whether the lender requires extended coverage. Confirming that everyone who worked on the home has been paid before closing is what keeps a fresh build from becoming a title problem later.