What Happens If a Homeowner Refuses to Pay?

If a homeowner refuses to pay for completed construction work, the contractor may have several legal remedies available under Ohio law. The appropriate remedy depends on the terms of the agreement, the work performed, and the specific facts of the dispute.

One common option is filing a mechanic's lien against the property. Ohio's mechanic's lien statutes, found in Ohio Revised Code Chapter 1311, allow contractors, subcontractors, laborers, and material suppliers to secure payment by placing a legal claim against the improved property. A valid lien can affect the homeowner's ability to sell or refinance the property until the claim is resolved.

In addition to lien rights, a contractor may pursue a breach of contract claim seeking payment for the unpaid balance, interest, and other damages permitted by law. Whether a written contract exists can affect the evidence available in the dispute, but oral agreements may still be enforceable in certain circumstances. Other remedies such as unjust enrichment may also be available.

If a mechanic's lien is filed and the debt remains unpaid, the contractor may ultimately initiate a lien foreclosure action under Ohio Revised Code § 1311.11. A successful foreclosure action can result in the property being sold to satisfy the unpaid debt.

Because payment disputes often involve questions regarding contract performance, change orders, workmanship, or project delays, the outcome will depend on the specific facts and whether the contractor has complied with Ohio's statutory requirements.