Your Lien is Worthless on Tenant Buildouts & Here’s Why
Doing work for a tenant in a retail space, office, or strip mall? Your standard lien rights might not be what you think they are. In this concise and crucial episode, board-certified construction attorney Alex Barthet reveals why liens for tenant improvements can often be surprisingly weak, sometimes even worthless against the actual property. Alex breaks down how landlords legally protect their assets, what foreclosing on a “leasehold interest” really means (it’s probably not what you’re hoping for!), and most importantly, shares actionable strategies you can use before and during the job to protect your right to payment. Learn how to spot red flags, understand your limited security, and employ statutory tools to potentially gain leverage.
Highlights in this episode:
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The Core Problem: Why your lien typically only attaches to the tenant’s interest, not the landlord’s valuable property.
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Landlord’s Protective Shield: How “no-lien” lease clauses and public recordings are used by landlords to prevent liens on their property.
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Leasehold Lien Realities: What it means to foreclose on a lease, the risk of tenant eviction, and when such a lien might hold some value.
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Pre-Contract Due Diligence: Essential steps to identify the true property owner and assess your risk before you start work.
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Strategic Protections: How to mitigate “pay-when-paid” risks and use the statutory “Demand for Copy of Lease” to potentially strengthen your position against the landlord.
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Key Takeaways & Resources: A quick recap of critical points and an introduction to tools like the Lien-o-matic to help navigate these tricky situations.
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